Maintaining your value as a bookkeeper
The main difference between the role of a bookkeeper and the role of an accountant is one prepares and files your income taxes, and one prepares the reports to pass along to the one filing the income taxes.
Clients new to business may get the two roles confused. They may say they want an accountant but once they discuss what they are looking for, it might actually be a bookkeeper that is needed and vice versa. This has happened to us many times in the past, and even throughout client engagements.
A good bookkeeper knows how far to go before they advise the client to bring a question or update to the accountant for input. It is not uncommon for a bookkeeper or the client to not be totally sure how to handle a new and unusual situation, and since the accountant knows the entirety of the client's tax situation, we rely on (and respect!) their expertise.
The bookkeeper's role might include:
- Set up the initial set of books
- Clean up the books
- Classify bank, credit card, merchant transactions accordingly
- Reconcile all business accounts
- Assist with invoicing, and payables
- Maintain proper loan balances
- Maintain proper intercompany loan balances
- Sales tax filing
- VAT filings
- Payroll processing and payroll tax remittances
- 1099 filings (USA)
- being well-versed in the company's financial picture
- ...and more day to day financial maintenance
The accountant's role might include:
- business tax advising
- tax planning
- estate planning
- staying current on tax laws
- calculating estimated taxes
- understanding the client's entire tax situation
- filing annual tax returns
- ...and more (that we as bookkeeper's may not be aware of)
Are you new to business and not sure which one you need? We can help. We aim to be a resource and guide you in the best direction within our realm.