Bookkeeping vs Accounting

Common Elements of Bookkeeping

Bookkeeping can include managing the following process:

  • Daily finance tracking
  • Managing employee payroll
  • Tracking bill payments
  • Monitoring invoices (e,g, vendors, contractors, etc.)

Bookkeepers should also be able to answer all questions about the status of payments.

Common Elements Within Accounting

Accountants use the Bookkeeper's financial reports to perform analysis tasks:

  • Managing budgets
  • Filing taxes and returns
  • Advising on business operations

Largely, accountants are responsible for a business's financial health. For example, if expenses are trending towards going over/under budget, they can look into what’s causing it and make recommendations to help resolve any associated issues.

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