What is the difference between bookkeeper and accountant?

Bookkeeper is the process of recording daily transactions in a consistent way and is a key component to building a strong business foundation.

Bookkeeping is comprised of:

• Recording financial transactions
• Posting debits and credits
• Producing invoices
• Maintaining and balancing subsidiaries, general ledgers, and historical accounts
• Completing payroll

• accountant is a high-level process that makes sense of information previously compiled, and produces financial models using that information. The process of accounting is more subjective than bookkeeping, which is largely transactional.

  The process of accounting includes:

  • Preparing adjusting entries (recording expenses that have occurred but aren’t yet recorded in the bookkeeping process)
  • Preparing company financial statements
  • Analyzing costs of operations
  • Completing income tax returns
  • Aiding the business owner in understanding the impact of financial decisions

Accountant academic degree higher than the bookkeeper