Do I need a Bookkeeper or an Accountant?

What are the main differences between a Bookkeeper and an Accountant?

More often than not, people think Bookkeepers and Accountants have the same job role. They’re actually not and because people don’t realise this they don’t always know what it is they really need out of the two. They might need both or just one. In this blog post we’ll help you answer the question: “Do I need a bookkeeper or an accountant?”.

Accountants

Accountants tend to focus on the bigger picture tasks. They do auditing, tax returns, and ensure everything is submitted to HMRC as it should be. They’re often experts in tax and so can provide clients with tax planning services. There are a number of specialisms in accountancy too with some focusing on insolvency; negotiating the buying and selling of businesses; pension advice; HMRC investigations, and more. Accountants do not tend to be responsible for the day-to-day financials of the business. It’s also unusual to find them processing payroll as it’s not a good use of their skills. More often than not Accountants earn more than Bookkeepers and charge more.

Bookkeepers

Bookkeepers very much have their finger on the pulse when it comes to the day-to-day running of the company’s finances. They ensure paperwork such as receipts; time sheets; invoices; bank statements; and other important documents, are gathered and processed in the correct way. Many business owners will invite them to board meetings to provide financial reports for the month, provide forecasting, monies owed to and by the company, profit margins, and other services to the business. They may even undertake forensic bookkeeping if there is unusual activity in the accounts. Bookkeepers often process the payroll and pension submissions for the company. They also tend to have more experience with accounting software packages simply because they use them more extensively and have to troubleshoot and find new solutions to support clients.

But aren’t you competitors?

Bookkeepers and Accountants are not usually competing entities, in fact they can be quite the opposite. Having said that, some accountants offer bookkeeping services, and some bookkeepers offer accounting services. At COS we are partnered with a variety of accounting firms and we refer work to one another all the time. We understand where are strengths lie. It’s also critical that both parties have a good relationship because this makes the entire process smoother for everyone involved.

How do I know if I need a Bookkeeper or an Accountant or both?

The first thing to do is to sit down and make a list of all the things that you think you require from a financial expert. Questions you might ask yourself are:

• Do I need payroll processing?
• Do I need my tax return filing?
• Am I using the right software for my business?
• Do I need some training in the accounts package I’m using?

Then think about the things you’re sure you don’t need. For instance, maybe you already have an accountant who does your tax return, or maybe you have a company who already provides you with payroll services? Maybe you do the bookkeeping yourself and you only want part of it done by someone else.

Have a think about the job descriptions we have provided above when you consider what it is you need.

What if I’m still not sure what I need? Where can I get advice?

When a new enquiry calls us they aren’t always sure what they need and we help them to figure that out. We offer a free exploratory meeting where we go through all of your requirements and your budget and then provide advice and solutions. It might be that you don’t need our help at all and that what you require is purely work fit for an Accountant. In which case we will refer you to one of our trusted accountancy partners. It could be that you need a mix of both our services and theirs and we can work together with another firm to provide you with that mix.

How can I find an affordable way to get my accounts sorted?

The majority of our clients are on a fixed priced contract because we understand the importance and security of knowing what your outgoings are every month. After all, helping people plan their finances is what we love. Sometimes a firm would like a bookkeeper and are in need of one but can’t afford one at that time and have no choice but to try to do it themselves. We can help find solutions to that too by providing training for you or for someone in your firm, so you can process as much of the bookkeeping as you can. Then at the end of each month we can check you’ve done things correctly and do the more complex parts of it for you. Ultimately this could potentially also reduce your accountancy fees every year because the accountant has less work to do because you’re more prepared. That’s just one example.

Would you like to know more?

Organise a free exploratory meeting with our MD Karen Garrattley so she can help answer your questions and get your business in order.