What is the difference between a Bookkeeper and an Accountant?

 ' About £60 per hour.’

Joking apart, the question is one that many new business owners ask simply because they do not know but it is important that you know the difference to ensure that you get the best value for your money.

Simply defined, bookkeeping is the practice involved in the day to day recording of financial transactions. A bookkeeper is the person who provides this financial support and plays an administrative role within the business. An accountant’s responsibility centres on collating, recording and communicating such information and analysing it for decision making purposes.

Using a professional bookkeeper is often the best solution for the small business owner as it allows you to devote more time to your core business activity. A good bookkeeper shall keep your finances on track however a bad bookkeeper can cause you no end of problems.

As a small business owner you probably already have a system in place for recording your financial transactions on a day to day basis. However as your business grows you may find it increasingly difficult to continue to do them on your own and therefore require the assistance of a bookkeeper but how to do find the right one for you and your business.

 The key steps to choosing a good bookkeeper are:

• Check they are a member of a recognised bookkeeping body such as the Institute of Certified Bookkeepers (www.book-keepers.org).
• Have a clear idea of what services you require.
• Clarify the charges scale at the outset. It makes more sense to spend a bit more on bookkeeping staff and/or systems rather than leaving it all to a much higher charging qualified accountant.
• Use personal recommendations from respected fellow business people.
• Select and meet with three bookkeepers before making your choice.
• Make the appointment for a trial period only, and set a specific task to see how they get on.

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