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Bookkeeper or Accountant: Which is Right For My Business?

Bookkeeper or Accountant? It can be hard to know which is going to be the best fit for your business. This is especially the case as, for many, the words 'Accountant' and 'Bookkeeper' are interchangeable. As Accountant's, we're here to tell you that isn't necessarily the case. But don't worry, we've pulled together this blog post to help you choose the right support for you and your business.



What’s the difference?


Before we dive into finding the perfect fit, we first need to understand the difference between the two roles.


Bookkeeping focuses on keeping an accurate track of money coming in and going out of a company. Essentially, bookkeeping is the first part of the broader accounting process. The next steps of accounting are summarising, analysing, consulting and reporting on the records produced during the bookkeeping process.


Interested in learning more? We’ve previously written a whole blog post on the differences, click here to discover more.


How can a Bookkeeper help?


Hiring a bookkeeper will help monitor, categorise and fill in reports regarding the day to day cash flow and financial transactions. They’ll help support you with:

  • Bank reconciliation

  • Processing payroll

  • Invoice management

  • Keeping financial records

It’s also worth noting that a Bookkeeper is not required to have a specific educational background or accreditation. Whilst the work of a Bookkeeper is often time-consuming, some business owners choose to manage their bookkeeping themselves.


How can an Accountant help?


Accountants can provide bookkeeping services but they also provide advanced analysis and reporting to support financial forecasting and planning. They’re incredibly familiar with the latest tax laws and are on hand to provide guidance and advice alongside general set up and bookkeeping tasks.


Here’s a look at some of the services BCT Accountants offers:

  • Tax planning and consultancy

  • Business start up support

  • Automated entry

  • Cloud based accounting

  • Financial Reporting

  • IR35 Review

  • Company Secretarial including maintaining Person of Significant Control Register

  • Systems reviews to streamline processes

  • Assistance with recruitment of finance staff

  • Xero training and system building

  • Business valuations

  • HMRC investigations

  • Calculation and review of KPI’s

  • Assistance with automation of bookkeeping processes

  • PAYE Health checks

  • Automation of bookkeeping services


Top tip! Ensure that your prospective accountant is fully qualified as the title of Accountant is not protected like some titles. BCT Accountants are proud to be a member of the Chartered Institute of Accountants in England and Wales and staff also have additional qualifications as both Chartered Accountants and Chartered Tax Advisors.


So, which is right for me?


For basic bookkeeping tasks, like recording your expenses and paying employees, outsourcing to a bookkeeper could be a great option to save you time.


However, if you’re interested in deeper financial analysis and tax support, hiring an accountant will be a better fit.


For larger companies with several employees and significant annual revenue, you may opt to hire a bookkeeper and accountant to work together to handle a wide range of financial tasks.

 

If you would like a helping hand with your business finances, get in touch today to book your FREE initial consultation. Give Catherine a call on 01423 431889 or email catherine@bctaccountants.co.uk.


Please note: all stats are accurate for the 2022/23 tax year.

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