What’s the difference between a bookkeeper and an accountant?

Finance is at the heart of every business, meaning accounting skills are highly sought after by employers – but what is the difference between a bookkeeper and an accountant?

Both roles play a crucial part in the daily functioning of businesses, and if you’re considering a career in finance, understanding the distinction can help you choose the right career path.

This blog sets out the key differences between each role and explains how you can get the qualifications you need to start your career.

 

What does a bookkeeper do?

Bookkeepers are responsible for keeping accurate financial records. They ensure that each financial transaction is recorded correctly.

Typical tasks of a bookkeeper include:

• Recording sales and purchases
• Processing invoices and payments
• Reconciling bank statements
• Maintaining ledgers
• Managing petty cash
• Supporting payroll processes
• Preparing VAT records where appropriate

By keeping financial records organised and up to date, bookkeepers help businesses understand their day-to-day financial position and provide accountants with accurate information to work from.

Once you’re working in industry, salaries start at an average of £27,000/yr for newly qualified bookkeepers. (based in London with 0-1 year experience, source: Glassdoor)

 

What does an accountant do?

Accountants analyse the financial records prepared by bookkeepers. Rather than recording every transaction, they interpret the information to help businesses understand their finances and abide by the law. An accountant’s responsibilities may include:

• Preparing financial statements
• Producing management accounts
• Completing tax returns
• Advising on tax planning
• Preparing budgets and forecasts
• Analysing business performance
• Advising business owners on financial strategy
• Ensuring compliance with financial regulations

Once you’re working in industry, salaries start at an average of £36,000/yr for newly qualified accountants. (based in London with 0-1 year experience, source: Glassdoor)

 

Do businesses need both in their organisation?

Depending on the size of the organisation, they will have different requirements. For small businesses, a bookkeeper may be enough to handle day to day finances, while larger organisations like to have both a bookkeeper and an accountant to keep accurate records and to advise on strategy, taxes and audits.

 

Can a bookkeeper become an accountant?

Yes, many accountants start out as bookkeepers and are able to transition smoothly into the role of an accountant. By gaining experience and completing professional qualifications, a bookkeeper can progress into accounting roles with greater responsibility for financial reporting, tax, auditing, and business advice. 

 

How can I start my career in finance?

You don’t need a degree to work in finance, but you will need to study some qualifications. A common route is to study qualifications from the Association of Accounting Technicians (AAT), which is the world’s leading professional body for accounting technicians. 

Mindful Education’s award-winning Online and On Campus delivery model is mapped to AAT’s syllabus, and our flexible approach to learning means you study at a time and place that suits you, using high-quality online learning materials which feature engaging video lectures and motion graphics. You will also attend in-person sessions with a college tutor, without having to commit to multiple evening classes each week. This blended approach allows you to easily fit your studies around your existing work and family priorities. 

Check out our accounting courses and apprenticeships to find out more and get started.