Bookkeeper vs Accountant

What is a bookkeeper?

A small to mid-size business often hires a bookkeeper to process and record the numerous transactions including sales, purchases, payroll, collection of accounts receivable, payment of bills, and more. It is the duty of bookkeepers to deliver correct, current financial data about a company. Their reports are often sent to managers and corporate owners to aid in decision-making.

What does a bookkeeper do?

A bookkeeper is a data entry specialist whose primary obligation is to create and manage up-to-date company records. A bookkeeper’s typical duties include entering invoices and bills and doing bank reconciliations. With the creation of several cloud accounting programmes like Xero, QuickBooks, and others, bookkeepers are now required to be knowledgeable in a variety of programmes. With the use of programmes like AutoEntry and ReceiptBank, bookkeepers are no longer required to enter data but rather to code the various costs into the appropriate ledgers.

How much do bookkeepers charge?

Where you are based is mostly what determines this. Of course, bookkeeping rates in London are far higher than those in Berkshire. But, an experienced bookkeeper would often charge £20 per hour as a starting rate; however, depending on the complexity, industry, location, etc. of the service, this rate may rise to £50 or even higher. There are outsourcing firms that offer bookkeeping services for as little as £10 per hour. So in a lot of cases, you will find larger accountancy practices with fully outsourced bookkeeping and in some cases accounts compliance teams.

What is a difference between and accountant and a bookkeeper?

In a nutshell, a bookkeeper and an accountant are different in that a bookkeeper records and maintains transactions while an accountant interprets and analyses this data. The majority of the time, accountants dislike bookkeeping; nonetheless, without effective bookkeeping, they are unable to perform their favourite job, which is often the preparation of financial statements.

Do you need a qualification to become a bookkeeper?

To work as a bookkeeper, you don’t need a degree, but it could be challenging to find employment without any prior experience. A broad understanding of cloud accounting programmes like Xero and QuickBooks, as well as solid foundational knowledge of accounting concepts like double entry, would be helpful. Enrolling in AAT will be an excellent place to start if you want to pursue a career in bookkeeping because they provide excellent coverage of the foundations of both.

What can Finanche do for you?

We at Finanche are certified in the most widely used cloud accounting programmes in the UK. The monthly plans we decide upon with you include our bookkeeping rates and there are no unexpected increases.