Bookkeeping vs Accounting: What Every Business Should Know
Gabriel Nwatarali
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A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team. Compare the available tools, try the everyday tasks yourself and choose a setup you can maintain as your business grows.
What does a bookkeeper do?
Simply put, bookkeeping is the recording of a company’s day-to-day financial transactions on all applicable accounts (also known as the general ledger).
The primary role of a bookkeeper is to record your debits (expense) and credits (income) on the general ledger. A bookkeeper’s responsibility may also include the preparation of financial statements and reports.
Expectations for bookkeepers
Tasks or responsibilities will vary based on an organizations requirement. Some bookkeepers might also be tasked with any one or more of the following:
- Invoice clients for services or products (accounts payable) and record, including follow up on outstanding balances (accounts receivable).
- Check the company’s bank statements to ensure balances match recorded transactions (aka bank reconciliations).
- Sometimes bookkeepers manage payroll when bookkeeping for small business. But this is only ideal if you have a small staff (e.g. 5 – 20 employees).
- Maintain the general ledger in addition to recording transactions.
The function of a bookkeeper has slightly shifted in recent years but their main responsibility remains the same. That is, to keep good records of your organization’s financial affairs.
What does an accountant do?
In contrast to bookkeeping, accounting professionals analyze, report, and summarize financial data. They help senior management or executives make sound business decisions.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team. Compare the available tools, try the everyday tasks yourself and choose a setup you can maintain as your business grows.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team. Compare the available tools, try the everyday tasks yourself and choose a setup you can maintain as your business grows.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
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Expectations for accountants
Accounting responsibilities include but may not be limited to the following:
- Create balance sheets that provide a ‘snapshot’ of the company’s financial position at different points in time.
- Prepare income statements that give you an overview of all business sales and expenses. Typically this is done on a quarterly or monthly basis.
- Put together cash flow statements that provide records of all liquid (cash) assets flowing in and out of your company for a period of time.
- Document financial transactions like bookkeepers.
- Analyze your business’s financial transactions and accounting options to recommend appropriate actions.
- Audit financial documents to substantiate any claims or reported info.
- Recommend policies and procedures for accounting processes.
- Maintain regular backups of your company’s financial records.
- Ensure you are following all regulation and internal controls. Including ensuring compliance of all other legal requirements, whether at the local, state or federal level.
- Puts processes in place that ensure the confidentiality of financial information.
Bookkeeping vs accounting: the main difference between
Accountants are strategic planners that provide valuable insights to help business executives/owners grow their companies. But, they can also perform the same tasks as a bookkeeper.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team. Compare the available tools, try the everyday tasks yourself and choose a setup you can maintain as your business grows.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
Bookkeeping vs accounting: the evolution
Technological advancements have enabled innovations in the practice of bookkeeping and accounting services. Modern software caters to both bookkeepers and accountants because the two roles overlap.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
For instance, FreshBooks has amazing invoicing functionalities that really simplify the creation of invoices.
You can access reporting and perform most tasks while mobile with all of the aforementioned software.
Cloud-based accounting and bookkeeping solutions
The separation that once existed between bookkeeping vs accounting is slowly diminishing. This is thanks to the advent of integrated cloud-based accounting and bookkeeping software.
Online software has dramatically streamlined the primary role of a bookkeeper. Bank statements, ledgers, and reconciliations have become more automated with modern tools.
For example, QuickBooksA clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
Our top picks for September 2026
The accounting professional is well-positioned
Increasingly, more corporations are taking advantage of cloud technology and shifting their operations online.
These technologies have and continue to increase the efficiency of operations. As a business owner, you can now access financial data from anywhere in the world, at any time on a number of different devices.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
You can learn a lot about how to position your company in such a way that reduces its overall tax liability from a seasoned accountant. Plus they can also take on the role of bookkeeping.
This is why hiring an accountant may be what you need but keep in mind that they’re more costly. So having both a bookkeeper and accountant on your corner is probably best for the long run.
Thriving in the era of cloud technology
Businesses perform best when they have a complete picture of their finances. When it comes to bookkeeping vs accounting professionals, whom you decide to hire will depend on your objectives.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team. Compare the available tools, try the everyday tasks yourself and choose a setup you can maintain as your business grows.
Functions of a bookkeeper and accountant work hand in hand to help your business become more profitable. Both can offer a holistic view of your businesses’ financial situation.
A clear view of your accounts starts with a workflow that fits your business. Bring invoices, expenses and financial reports together, then review the details that matter to your team.
Nonetheless, there’s no substitute for good advice. Hence, the bookkeeping or accounting professional that provides value-added services to their clients will do very well.
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Gabriel Nwatarali
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