A bookkeeper is the “assistant” of an accountant. The accountant oversees all work done by a bookkeeper. He also has the responsibility to fix any errors made.
- The responsibilities of a bookkeeper and an accountant differs from company to company.
- Generally, a bookkeeper handles all typical bookkeeping. This includes data entry and accounts receivables and accounts payables collections.
- An accountant generally takes care of less routine tasks such as inventory management.
- An accountant will have to use journal entries for out of the ordinary transactions. He reviews all the work done by the bookkeeper.
What are the responsibilities of an accountant and a bookkeeper?
This varies depending on the company and industry.
- Data entry
- Accounts receivables and accounts payables collections
- In charge of less routine tasks (e.g. inventory management)
- Preparation of end-of-month and end-of-year journal entries
- Preparation of financial statements
- Journal entries
- Review all work done by the bookkeeper
- May have to do tasks usually done by a bookkeeper
So what exactly is the difference between a bookkeeper and an accountant?
A bookkeeper and accountant both record all a company’s transactions. But an accountant usually handles more “complex” transactions that need journal entries.
An accountant can do everything that a bookkeeper can. An accountant has the responsibility to manage a bookkeeper’s work. An accountant earns more than a bookkeeper. Because an accountant takes on more senior responsibilities and accountability within the company.