Bookkeepers And Accountants Working In Harmony
Bookkeepers and accountants working in harmony? Does this happen in reality or is this pie in the sky? Many people aren’t really sure what a bookkeeper’s role is and what an accountant does. In the latest blog from team4, our aim is to clear up any confusion you may have. We look at the different roles and what each job entails and highlight some areas where the two job descriptions overlap. One thing is clear at the outset – both functions are extremely important for any business and maintaining healthy business finances is a key ingredient for success.
General descriptions of a bookkeeper and an accountant
It’s true that bookkeepers and accountants do some of the same work. In general terms, both handle financial data. A bookkeeper will record transactions and keep your financials in order maintaining day-to-day records keeping these tidy so the accountant can do their job. Alternatively an accountant is there for compliance and as a tax advisory using the bookkeepers’ figures. They will interpret, classify, analyse, report on and summarise the financial data.
The role of a bookkeeper
- Recording and categorising financial transactions
- Posting debits and credits
- Compiling and sending invoices
- Completing payroll
- Maintaining and balancing ledgers and accounts
- Preparing and filing VAT returns
- Providing basic tax advice
The role of an accountant
- Preparing entries and financial statements
- Completing income tax returns
- Financial analysis and strategy
- Tax strategy and planning
- Corporate financial reporting and compliance
- Preparation of business plans and cash flow forecasts
The overlapping roles of accountants and bookkeepers
The line between bookkeeping and accounting functions is slowly diminishing and with the advancement of cloud bookkeeping software such as QuickBooks, Sage and Xero, some parts of accounting are being absorbed into the bookkeeping role. The software can also generate financial statements, which were once part of the accounting process. It also means bookkeepers can add value-added services including payroll processing and management account reporting.
How team4 works with your accountant
We believe in working together with a client’s accountant. Our aim is to ensure a close working relationship. We prefer a chat right from the outset with your accountant so that the transition is seamless and we want them to be involved in any relevant meetings, which we believe is better for you. By involving them initially, we’ll see how they want us to work. This we believe results in the perfect scenario of bookkeepers and accountants working in total harmony for the benefit of your business.
Accountant – Client – Bookkeeper
What can team4 do to help your business?
Reliable and trusted bookkeeping services are essential for a thriving business. Bookkeepers lay the groundwork for accountants providing detailed and accurate data, which is essential for the accountant to do their job. If you would like a chat with a ‘no fuss’ bookkeeping team who will cut out the jargon, why not get in touch with the experts at team4? Please call us on +44 1825 763378 for more information or email info@team4bookkeeping.co.uk
