Many people find themselves confused about the difference between accountants and bookkeepers, especially when they haven’t required the services of either before. If this sounds like you, read on – we can provide the clarity that you are seeking.
What is accountancy?
In a nutshell, accountancy is a field that includes a range of processes. These can include auditing, tax planning, producing financial reports and more basic activities such as record keeping and completing VAT returns. In other words, everything you need to keep your business on track financially and to ensure that you are meeting your obligations to HMRC.
What does a bookkeeper do?
Bookkeeping is actually part of the accounting process rather than a totally separate entity. The practice is focused on record-keeping rather than advice and is designed to help you track and maintain your financial activities. Bookkeepers are tasked with reconciling figures and can produce reports with the data that they have access to.
What are the similarities between accountants and bookkeepers?
Accountants and bookkeepers have a number of similarities, but also considerable differences. A qualified accountant is eligible to work as an accountant, but a bookkeeper will require appropriate qualifications if they are to be also regarded as an accountant. An accountant may have a degree in financial accounting and may provide you with consultancy services. They may carry out your bookkeeping themselves or instruct a colleague to do this on their behalf.
Which service is right for me?
Whether you should opt for a full accountancy service or simply enlist the support of a bookkeeper will depend on a range of factors. These can include the size of your business, the nature of the work you do and how many people, if any, you have working for you. If you are a sole trader, you may be able to source all the financial management support you need from a bookkeeper. A bookkeeper may also suffice if you only need to keep track of the money coming in to and out of your business. However, if you need advanced financial advice, support with reducing tax legally and ethically and help with dealing with HMRC, an accountant may be the best match for you. Though the services of a bookkeeper alone may be fine if you only have basic financial management needs, it’s wise to enlist the services of an accountant if you require help with a wide range of complex accounting issues that impact your business.
Why Morgan Reach?
At Morgan Reach, we can come to your assistance if you do require accountancy or bookkeeping services. We are able to provide financial management services of the highest calibre for companies of all sizes, from a wide range of sectors. Whether you need help with annual accounts, strategic wealth planning, corporate or personal accounts, we can provide the excellence that you are seeking. We supply financial management services for companies with annual turnovers of up to £10 million and can also help you if you suspect you have been paying too much tax.
Getting in touch
To find out more about how we can help you with accountancy and bookkeeping, contact us today. You can reach us by completing the form on our site or by calling our Manchester, Birmingham or London offices.
DISCLAIMER: This article is for guidance only, and professional advice should be obtained before acting on any information contained herein. Morgan Reach Chartered Certified Accountants cannot accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the content of this article.