Difference Between Bookkeeper & Accountant
The accounting industry is full of people who handle the basic tasks for recording and reporting a company's financial information. Two common designations are bookkeeper and accountant. While the terms may seem interchangeable, they really have separate definitions. A clear distinction is necessary because companies should separate accounting tasks among these two worker types.
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Bookkeeper Defined
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Bookkeepers are typically individuals without a college degree or formal college education. While a bookkeeper can complete most or all standard accounting tasks in a company, they are basic data entry personnel. Bookkeepers may not know or understand accounting theory and issues relating to auditing or taxation. Large companies may have multiple bookkeepers to help assist accountants with basic accounting tasks. This allows accountants to work on other more important tasks.
Accountant Defined
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Accountants often have a college degree and sometimes a professional license. Accounting certifications include the certified public accountants, certified management accountant or the certified internal auditor. Accountants can work on more intense projects such as financial statement analysis, sales forecasts, budgets, depreciation schedules, loan estimates and similar tasks. Adjusting entries may also fall under tasks performed by accountants. These entries remove accruals and help keep a company's financial information accurate.
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Hierarchy
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In most accounting offices, a controller or accounting manager is often the top position. Most companies promote accountants to this position. Companies need an individual with an accounting education and professional certification. Accountants are typically the second level of the office hierarchy. Senior accountants can supervise other accountants and bookkeepers. The bottom position includes bookkeepers and accounting clerks. These individuals will often work in data entry positions such as accounts payable or accounts receivable.
Considerations
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Publicly held firms often prefer to hire accountants with degrees and professional certification. This presents a better picture of the company's accounting office. Executive managers who sign and approve financial statement have reasonable assurance that the information meets standard accounting principles. Degreed accountants can also provide more suggestions for improving a company's financial operations.
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