Most business owners tend to use the terms ‘bookkeeper’ and ‘accountant’ interchangeably, but they do have different yet complementary services.
Bookkeeping just refers to the process of looking at financial transactions and then recording what is stipulated in them. They are also the ones who are responsible for its storage and they will be the ones to hand out important financial information whenever the CFO needs it.
On the other hand, accounting refers to a more systematic approach of classifying, analyzing, summarizing, interpreting, and even reporting the financial data to the company CEO.
So as you can see, both bookkeepers and accountants can work hand in hand in providing a much better overall service. That is why it is much better to get accounting and bookkeeping services in Malaysia.
This article typically revolves around the differences between the two professions- focusing more on the business side of things.
Functions of an Accountant
There are a lot of services that an accountant can provide, but their main functions revolve around analyzing financial statements, completing the company’s income tax returns, and even helping the company owners understand all of the industry jargon- particularly the accounting terms that they know little or nothing about.
Functions of a Bookkeeper
The bookkeeper is technically the person responsible for keeping track of the company’s daily financial transactions by managing and carefully logging in all of the details. The details that they should keep track include payments, purchases, sales, and receipts.
Even though the aforementioned are typically what a bookkeeper does on a regular basis, they are not only limited to doing just those things as they can also be responsible to handle a lot of other tasks as well.
Some of these tasks may include monitoring the company’s accounts receivables, payroll management, working with financial controllers to help them complete the business’ monthly financial closings.
The role of the bookkeeper typically depends on the number of transactions the company makes on a daily basis and how big the size of the business is. The bigger the business gets; the more responsibilities they have to take on.
Because of the plethora of tasks that a bookkeeper can handle, they are sometimes mistaken for a company financial controller. However, it should be noted that a financial controller is a highly-trained professional with distinct responsibilities of a bookkeeper, but can also complement what they do as well.
What is a Financial Controller?
Also known simply as the “Controller”, hits person is a professional and helps business owners have a much better understanding of their company’s financial health.
They usually turn to a bookkeeper’s data to help them understand how the company is doing so far. This includes looking at the business cash flow and profit margins, among many other things.
Which Service Should You Go for?
Both an accountant and a bookkeeper can work hand in hand to provide much better services, but if you were to choose one (because of cash constraints), then that will depend on what your business needs.
If you want a day-to-day logging of all of your business transactions, then getting a bookkeeper makes perfect sense.
Conversely, if you only need help for whenever you file taxes, for example, then an accountant will surely suffice.