Should An Entrepreneur Hire A Bookkeeper or Accountant?

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The Difference Between Accountants & Bookkeepers

Accountancy BookkeepingThis is a question that every new entrepreneur considers at one time. It is an important decision especially for the entrepreneur who is used to wearing many hats and is unaccustomed to delegating responsibilities that go with a startup or small business.

The first place to begin in considering this question is to be sure you understand the difference between an accountant and a bookkeeper. There are several types of accountants but they all have taken classes in accounting and are certified at different levels. So, one distinction between an accountant and a bookkeeper is their level of education and training.

Many bookkeepers also have some amount of general education in the basics of bookkeeping and perhaps a few accounting courses. However, bookkeeping skills do not take as long to develop as do accounting skills.

Bookkeepers and accountants provide very different functions and both provide the best service when they work together in a coordinated entry system. An accountant is an expert analyst. Accountants can analyse financial statements including profit and loss statements, balance sheets and budgets and can offer analytical advice to the entrepreneur.
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