Having the expert guidance of an accountant from the earliest days of your startup will prepare your business for growth.Īn accountant will have the experience and knowledge to handle more complex processes, like booking accruals or revenue recognition. But most startups also have additional accounting needs that only an accountant can help with. Do I need a bookkeeper or an accountant?Įvery company needs someone who can handle the basic data entry functions of bookkeeping, and keep track of income and expenses. For more complex financial tasks or advice on interpreting data, an accountant will be better equipped to help. When it comes to paying bills or categorizing financial transactions, a bookkeeper will have you covered. In a similar way, the bookkeeper and accountant can both contribute to the company’s financial records, but the accountant is also concerned with the bigger picture of your financial situation.īecause bookkeepers and accountants have different levels of training and experience, they offer different types of support for your business. Both these roles need to understand the techniques and processes involved in filming, but the director also has responsibility for higher-level tasks such as planning and interpretation. A bookkeeper is like a cameraman in the film crew while an accountant is like the film’s director. So, what are the key differences between bookkeepers and accountants? While bookkeepers focus on data entry and completing everyday tasks, accountants are more focused on making sure the data is accurate, financial analysis, and reporting on the financial health of the business.Ī helpful way to understand the difference is to use the analogy of producing a film, as suggested by Gareth M. Accountants who have experience working with startups will have specific skills to support your company as it evolves, including designing a chart of accounts that scales with your business and suggesting the right finance and accounting tools for your business model. Because most accountants have a bachelor’s degree in accounting, and many obtain a Certified Public Accountant (CPA) license, they are qualified to interpret your financial records and offer guidance based on this data. One of the important distinctions between an accountant and a bookkeeper is the accountant’s ability to use financial data to help inform business decisions. When working with a bookkeeper, the accountant reviews the bookkeepers’ work to ensure accuracy and GAAP compliance. Bookkeeping does not require any formal educational qualifications or certifications.Īccountant’s duties might include all of that of a bookkeeper, plus more sophisticated finance functions such as completing the month-end close and reporting process, helping establish and monitor budgets, and delivering key financial insights such as burn rate and runway. A bookkeeper’s job may also include managing a company’s day-to-day financial functions like accounts payable and receivable, and monthly reconciliations. They use accounting software to keep track of daily transactions, income, and expenses, and make sure the company’s accounts are accurate and up to date. ![]() Accountant: What’s the difference?Īt a high level, bookkeepers and accountants are both involved with keeping accurate records of your company’s transactions.īookkeepers are responsible for maintaining the records of a company’s financial activities. ![]() This article will guide you through what each role can offer, which role most startups should be working with, and how your choice can impact your business. ![]() What’s the difference between a bookkeeper and an accountant? And which does your startup need? ![]() accountant-you need to keep your finances in order. If you’re struggling to keep up with your company’s day-to-day finance functions, or your business finances become more complex, you might be wondering which type of finance professional-specifically a bookkeeper vs. In our experience, we’ve seen too many startup founders take a lax approach to business finance management only to have it cost them more time, money and energy down the line. With a never-ending list of priorities, many startups let their business’s financial processes fall to the bottom of the list.
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