Bookkeeper (irenasbookkeeping.com.au/cloud-bookkeeping) who is responsible for recording daily business transactions at least has a diploma in accounting. A book holder is required to be accurate in presenting data because the ledger contains detailed information about the transaction per day. A bookkeeper must also know about the main financial topics. While working, they will be supervised by accountants or business owners whose books are being processed.
For accounting job qualifications, it will usually be managed by an accountant who has at least obtained a bachelor’s degree. Accountants should also obtain additional professional certification by taking the Public Accountant Certification Exam (USAP). An accountant is generally able to do a broad enough task even to conduct audits, review reports, and represent clients before the IRS. They are required to be meticulous, measured, sceptical, logical, consistent, disciplined and compliant with applicable ethics.
Bookkeeping activities include issuing invoices to customers, recording invoices from suppliers, recording changes in inventory, recording cash receipts from customers, paying suppliers, processing petty cash transactions, and processing payroll. Meanwhile, activities in accounting include making a list of accounts, preparing ledgers, designing financial reports, publishing management reports that are tailored to specific issues, making budgets and comparing them with actual results, and making tax reports and so on.
A book holder is indeed not required to have too many skills because the bookkeeping process is only in recording without requiring any analysis. While an accountant must have qualified skills to be able to analyze and interpret the information in the ledger into a report.
Although there are differences between the two, in practice all of these things can be blurred. This is because bookkeeping and accounting are related and both of them can collaborate. Organized and balanced financial records produced by bookkeepers, coupled with smart financial strategies and accurate tax filing by accountants, contribute directly to the long-term success of any business.
Technological advances that result in automation in various processes of corporate financial management also play an active role in blurring these differences. Automation has freed bookkeepers from repetitive and monotonous tasks. This allows them to improve their skills and take on more complex tasks. So here comes the online bookkeeper.