The terms bookkeeping courses and accounting courses are often used interchangeably; however, the two have many differences and are not same. However, both are important aspects of the business where bookkeeping has to make a record of financial transactions and accounting is to interpret, classify, analyze, report as well as summarize financial data. Interpreting and analyzing data is the main difference that comes in the responsibilities of an accountant and not includes in bookkeeping. Both the bookkeeping courses and aat accounting courses from Training Link are the part of the business financial process where a bookkeeper records the financial transactions which become the foundation of the accounting process that involves all the rest of the financial processes. Here is everything you need to know to about bookkeeping and accounting as well which companies should hire which of these services.
- Bookkeeping:
Bookkeeping responsibilities include recording financial transactions on day to day basis in chronological order. Some bookkeepers are often responsible to classify as well as summarize financial data in the reports. These are referred to as full-charge bookkeepers and have more salaries than bookkeepers but less than the accountants.
- Accounting:
The duties of accountants include analyzing the financial transactions that are in the financial statements as well as business reports by following the accounting standards, principles and requirements. It also includes analyzing as well as interpreting the financial data in order to report the performance and financial condition of the business to the business leaders so that they can take better decisions. More can be found on https://training-link.co.uk/courses/aat-accounting-courses/
- Similarities:
Untrained people might consider bookkeeping and accounting as the same profession. However, bookkeeping, as well as accounting, involves financial data and you need basic accounting knowledge in order to be in either of the professions. Some small businesses make the bookkeepers perform more accounting processes that also include classifying and generating reports by the help of financial transaction, though they do not have the education to perform these tasks, automated accounting software makes it easier. At some places, the accountants also record the transactions performing the bookkeeping services.
- Differences:
Bookkeeping jobs require a few accounting courses or basic knowledge of accounting, whereas for accounting jobs you must have the bachelor’s degree or if you have higher expertise then you can qualify for the certified public accountant. Bookkeeping allows you to handle recording of financial transactions whereas accounting makes you able to cater the entire accounting process. Accountants often work to review the bookkeepers’ work and become their advisers. The only work that bookkeepers do is to classify and record the transactions which serve as the groundwork for the accountants.
- Companies that hire bookkeepers or accountants:
Both the bookkeepers and accountants find work in colleges, universities, government agencies, healthcare providers, hospitality services or retails stores. However, if a business’ financial needs are simpler then they should opt for a bookkeeper. If a business needs to bring investors or funding, an accountant is a better option.
Bookkeeping is an initial part of the financial process whereas accounting takes the major role and has strong grounds in a business.