What are the differences between an accountant and a bookkeeper?

There are a few key differences between an accountant and a bookkeeper that you should be aware of as a business owner. Let's take a closer look at these differences.

 Education:
Accountant: An accountant has extensive training and education, including a bachelor's degree, CPA (Chartered Professional Accountant) designation, and at least two years of professional work experience. All CPA’s require 120 hours of ongoing professional development every three years to remain in good standing with the national and provincial Chartered Professional Accountants governing organizations.

Bookkeeper: While education is not regulated for bookkeepers, there are certifications available that can demonstrate their knowledge and skills. Bookkeepers also typically have knowledge of bookkeeping software.

 Services provided:

 Accountant: An accountant is a tax expert who can help with tax planning, tax efficiencies, and avoiding unnecessary taxes. They also manage the accounts of a business and determine how the financial statements should be summarized. In addition, they handle tax payment amounts for quarterly installments and prepare annual tax returns.

 Bookkeeper: A bookkeeper is responsible for recording transactions on a daily/weekly/monthly basis and organizing them into financial statements. They may also be responsible for processing payroll, paying bills, reconciling bank accounts, and invoicing.

 As you can see, there are some key differences between an accountant and a bookkeeper. An accountant has more extensive education and expertise, and they provide a wider range of services, including tax planning and managing accounts. A bookkeeper, on the other hand, focuses more on the day-to-day tasks of recording and organizing financial transactions.

 When it comes to choosing which professional to hire, it's important to consider your specific needs and budget. If you need help with complex tax planning and financial analysis, an accountant may be the better choice. If you simply need someone to handle the day-to-day tasks of bookkeeping, a bookkeeper may be more suitable. Ultimately, the right professional for you will depend on your specific needs and goals for your business.