Bookkeeping And Accounting – Their Similarities And Differences

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People who have interests and excel in math and numbers have numerous careers to consider. One field of work to which they may take on is bookkeeping and accounting. Despite the fact that some of the responsibilities and skills of these said careers might overlap, both have distinctive job description which sets them apart.

Bookkeeper

This particular book keeper profession needs the responsibilities of recording the financial transactions in chronological order to which they occur for an individual or business. The transaction recorder has to occur on a daily basis for ongoing record of activity.

Now, software programs are available, which automates most of the processes for an individual or company. Additional responsibilities might include summarizing and classifying financial data as well as transferring this info to periodic financial reports. A bookkeeper who is tasked with these responsibilities won’t be at the same level that of an accountant but, this position is higher compared to entry level employees.

Accountant

As for thisprofession, it consists of analyzing the data recorded in financial statements for a business or a person. This employee is performing this work in line with set requirements, principles and standards as well. After doing the analysis, the employee will finalize interpretation by making a report. Business owners can also base their future decisions in relation to the data presented in the report, which ensures that the owner has all the pertinent info regarding expenses, investments, account balances and revenue. Know more about accounting in http://www.ehow.com/about_5100581_types-accounting-consulting-firms.html.

Differences and Similarities

While both accounting and bookkeeping payroll services are involving financial data, the latter’s work requires more reporting and analysis than what a bookkeeper does. Depending on the size of the company, it is possible that bookkeeping position might involve several tasks that typically fall to accountants. This is true most especially because the integration of software helps in eliminating much of the analysis work that is traditionally performed by an accountant. The classification and automation that requires human intervention is now a process that can be done by a computer program.

Preparing for this advanced career is going to take more effort and time than what is does to prepare for a position in bookkeeping. Typically, a student earns their bachelor’s degree but, most students pursue advanced degrees in this said field. Within a company, the accountant is the one who oversees and supervises division, working with the bookkeepers that are performing daily financial tasks needed for the company’s financial health.

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