Bookkeeping and Accounting – An Overview
For those who are under the impression that bookkeeping and accounting are the same and a single person could carry out both the tasks efficiently are wrong. Besides being the two sides of the same coin, the segments of bookkeeping and accounting are far from each other.
If a company designates a single person to carry out both the businesses then it is overburdening the person with heavy duties. The individual will not be able to carry out either of the programmes effectively. Both the functions of the company are extremely important for running the business and therefore proper surveillance and organization is demanded the effective functioning of the company.
Difference between Bookkeeper and Accountant
Let us take a look at how bookkeepers and accountants are different from each other in their duties.
- Bookkeeping –This programme deals with identification, measurement and recordings of the financial transactions.
- Accounting –This process deals with the interpretation, communication, summary of the financial transactions.
- Bookkeeping –The bookkeeper’s data is efficient for record purpose but the management team cannot completely rely on the data provided by the bookkeeper to make decisions for the company.
- Accounting –On the other hand, the data provided by the accountant can be effectively used by the management team of the company to base critical decisions and execute accordingly.
- Bookkeeping –The main objective of a bookkeeper is to keep details and records of all the transactions of the company properly and systematically.
- Accounting –The main objective of an accountant is to look through the financial condition of the company and inform the financial stability of the company and its transactions to the authorities concerned.
- Bookkeeping –A bookkeeper is not given the responsibility to issue or prepare any financial statement for the company
- Accounting – Accountants are responsible for generating and analyzing the financial statements of the company’s accounts.
- Bookkeeping –Bookkeepers can be easily hired by testing basic knowledge understanding skills that are to do with statistics and data handling.
- Accounting – Accountants are hired after analyzing their abilities and skills to interpret various data and their compilation into reports.
- Bookkeeping –A bookkeeper’s duties might be associated with either single entries or double entries. Accuracy and proper knowledge on financial topics are demanded from a bookkeeper.
- Accounting –Planning of loan proposals, preparing a company’s budget and checking a bookkeeper’s work is some of the core duties of an accountant.
Thus, the above-listed pointers are some of the basic fields where an accountant differs from a bookkeeper and vice versa. It not just gives a clear understanding of their designations but also examines the duties and responsibilities awarded to them.
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Along with these, GCC Fillings are also associated with services like tax consulting, filing and returns in UAE. Tax auditing services and Vat Registration are some of the other chores which GCC Fillings serves for a company. Therefore, if you need any consultants or advice, any help or in need of financial upkeep then you can always contact GCC Fillings for aid. You can easily contact GCC Fillings on their official website that is exclusively available online.