Bookkeeper vs. Accountant: What’s the Difference? | Accounting Services for Small Business
It’s time to clear the air regarding exactly what a bookkeeper and accountant are, and how they can serve you as a creative entrepreneur.
If you’ve been using the titles ‘bookkeeper’ and ‘accountant’ interchangeably, there’s no judgment! I understand the confusion and I’m here to clear this up once and for all.
But before I go ANY further….I need you to know that both bookkeepers and accountants are in your corner. This blog will explore the difference between both professions, not pit them against one another.
Bookkeeper vs. Accountant
You know I love a good sports analogy, so lemme illustrate these two roles with a basketball example.
THINK OF IT THIS WAY…
Sports teams have two important roles: the coach and the athlete.
A ‘coach’ takes a high-level view of their team and creates a strategy for success. They’re reviewing gameplay footage, taking inventory of their team’s strengths and weaknesses, and ensuring their athletes are ready to leave it all on the field. They’ll analyze what’s being presented to them and make a few adjustments to ensure the athlete can perform at a high level. And if they’re a top-notch coach, they’ll be channeling their inner Phil Jackson to level up your game. Teamwork makes the dream work, baby!
An ‘athlete’ takes direction from their coach and works within the parameters of the strategy to achieve their goals. Just like Kobe taught us - do the work using the information given to you by your coach. Shoutout to the GOAT, RIP #mambamentality
An accountant can be compared to the coach, and a bookkeeper can be compared to the athlete in this scenario.
Differences Between Bookkeeping and Accounting
As the business owner, where do you fit in?
Staying with the sports team analogy, you’re the general manager (GM) of the team and it’s your responsibility to communicate where you want to take the team and what the overall strategy is.
You must provide direction to these professionals. That means sitting down and taking a holistic view of your business goals and providing them with accurate information. Things run smoothly when you know what’s happening on all sides which means you need to understand what your bookkeeper and accountant are doing.
Consider your business goal planning like a training camp - all athletes go to training camp before the season starts! Your bookkeeper and accountant can’t help you get to the NBA finals if you aren’t putting in the work yourself, boo.
What does a bookkeeper do?
A bookkeeper can serve your business by providing day-to-day financial tracking, ensuring your accounts payable & receivable are accurate, performing payroll tasks, and making sure your books are in top-notch, game-day-ready standing. Remember, your bookkeeper is working within the parameters of the high-level strategy set by you and your accountant (the coach!)
What does an accountant do?
An accountant helps you make those big decisions. They’ll help you reconcile bank statements, file your year-end taxes, assist with big financial decisions that require financial analysis and support you with any audits that may arise from the CRA.
How to Get In The Game with Your Books this Year
Like any great team, you must put in the work; sometimes things can get hard. But remember, it’s always worth it in the end.
You can transform your relationship with your finances inside my Bookkeeping Bootcamp!
This is a place where creative entrepreneurs come to get the coaching they need to win in their game. Inside the bootcamp you’ll learn:
The fundamentals of tracking finances (it’s easier than you think!)
How to save more money at tax time by optimizing your tax deductions
How to calculate your net worth and profitability
How to use Quickbooks Online to do all of the above
And more!
Not money savvy?
Neither were they. But they showed up, put in the work and feel more confident than ever with their financial goals and strategies. Word on the street is…
I FEEL EMPOWERED INSTEAD OF OVERWHELMED!
This course covered enough basics to make me *actually* understand what I needed to know (and not just pretend to understand).
I love that I now know what statistics to pull to make decisions that will help my business grow. Kristine took an intimidating topic and made it easy to understand.
AYESHA R., WEB DESIGNER, AYESHA SANTOS DESIGN
