How Accountants and Bookkeepers Spend Time
Estimated Reading Time: 4 minutes
All accounting professionals are not the same…
It doesn’t take long to spot the differences between people who are good with money and those who aren’t!
Thankfully business leaders have access to accounting professionals like accountants, CPAs, bookkeepers, controllers and more.
But what’s the difference? Is a bookkeeper the same thing as a CPA? Are all bookkeepers accountants, too?
Chances are if you aren’t involved in the day-to-day financial operations of a business, you may not be able to distinguish what makes each of these roles unique and valuable ⭐️ (shout out to our accountants and bookkeepers in the room).
We put together this quick rundown that should clear up the major differences, and arm you with some vocabulary that will make the accounting professionals you interact with give you a thumbs up 👍 and a well-deserved affirmative nod at the same time.
What does an accountant do?
While they’re both involved with a business’ finances, the responsibilities of accountants and bookkeepers are unique.
In short, accountants are highly-educated, experienced financial professionals who are responsible for managing a “system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results” (Merriam-Webster, 2022). Typically they have earned a college degree, and many are CPAs (Certified Public Accountants), having successfully “demonstrate[d] knowledge and competence by meeting high educational standards, passing the CPA exam and completing a specific amount of general accounting experience” (NASBA, 2022).
Accountants are responsible for the financial “big picture,” and perform the following functions (Northeastern University, 2022):
Bring a plethora of financial data to bear on important decision making processes
Receive information from bookkeepers and synthesize that information to create reports and other documents that offer insight to other business leaders
Serve in an advisory role on all matters pertaining to capex, opex, and more
Deliver tax advice, preparation, and tax filing
Ensure compliance by working with legal teams and federal and/ or state entities
What does a bookkeeper do?
Where accountants and CPAs are in charge of the financial macros 🏔, bookkeepers serve the critical function of managing the micros 🔎: the day-to-day details. Functions can vary as bookkeepers may work at small or large firms, small businesses, or function as part of an enterprise-level in-house accounting team. Here’s a sample list of typical bookkeeping tasks:
Collect and distribute 1099s
Ensure balance sheets are accurate
Print and mail W2s
Pay bills and make deposits
Run payroll
Perform reconciliations
Chase Manage uncategorized expenses and deposits
(pro tip: this is much easier with Uncat 😉)
Generate financial statements, reports, and more
Communicate with and deliver information to accountants and CPAs
Perform month-end and year-end close procedures
Adjust journal entries
Manage accounting and bookkeeping software like QuickBooks Online or Xero
Check out the 2022 Uncat Trends Report for more info on how accounting professionals manage uncategorized transactions and more.
Behind the Scenes: A Day in the Life of an Accounting Professional
So what does a bookkeeper do on a daily basis? See how managing the books might shake out in this infographic.
What’s the difference between an accountant and a bookkeeper?
Hopefully at this point the differences are becoming more distinct, but this side-by-side bookkeeper vs accountant comparison chart might provide some added clarity.
Bookkeepers
Financial micros (in-the-weeds day-to-day details)
Supports accountants and CPAs, and sends information to them for compilation and synthesis
Manages the books (daily, monthly, quarterly, yearly)
Can be client facing or not
Deals with transaction management (expenses, deposits, bills, etc.)
May work at a firm or be part of a team
Equally critical to business operations
Accountants
Financial macros (big-picture)
Big-picture financial management and reporting
Is usually a CPA (but doesn’t have to be)
Works with bookkeepers
Manages taxes and compliance
Offers analysis and advisement to business leaders
Could own a firm, work at a firm, or be part of an in-house team
Critical to effective business operations
Time-saving tools for busy accountants and bookkeepers
As you can see, accounting professionals have a lot on their plates.
And even with skilled accountants and bookkeepers in place, the sheer amount of work to do can get the best of them.
That’s where leveraging technology can help.
Check out our recent blog, “Build the Best Accounting Firm Tech Stack for your Business”, to get some tips for implementing the right mix of technology at your firm or business.
Ready to stop herding cats? Get started with a free 14-day trial of Uncat, or set up a demo to learn more.
