Those of you in Houston and beyond have often asked me, “what is the difference between a bookkeeper and accountant?” Although there are many similarities, there are also differences between a bookkeeper and an accountant. So to help everyone out, we’ve collected some of the key differences between a bookkeeper and accountant below.
The main difference between a bookkeeper is in the record keeping. A bookkeeper’s job is to gather the pertinent financial information, often known as “the books,” for a business. This includes profits, expenses, taxes, etc. While bookkeepers can give advice on what is to be done with this information, this task is more suited for an accountant. Their expertise lies in reading all this information and helping businesses and individuals make smart decisions.
There is also a different DIY mentality when it comes to bookkeeping and accounting. Many small business and individuals are their own bookkeepers and keep records of all their finances. However, many others choose to outsource their bookkeeping to a firm or a freelancer. Accounting also has an element of do-it-yourself-ness, but since the specialty is more complex than merely keeping meticulous records, it is outsourced far more often.
Tax time is often where the practices of bookkeeping and accounting are split. While it is an excellent idea to have all your tax records expertly maintained and recorded, this is where bookkeeping leaves off and accounting picks up. The main role of an accountant is to help prepare a tax return that is as advantageous for the individual or business filing it as possible.
So this begs the question: can a bookkeeper do your taxes? In some cases, no. In cases where the bookkeeper is familiar with current tax laws and procedures, yes. While accountants and certified public accountants (CPAs) are trained on all things taxes, they can also be more pricey. If you can find a bookkeeper with expertise and experience in preparing tax returns for individuals or businesses like yours, it can be advantageous in both pricing and individual attention to get a bookkeeper to help you out.
And as always, if you live in the Houston area and are interested in learning what a bookkeeper can do for you, please feel free to contact us at 281-894-6494.