Income Tax Preparation Denver – How Do Bookkeepers And Accountants Differ?

There are many people who believe that a bookkeeper and an accountant are the same and use the terms interchangeably. This is not the case, and these two terms are very distinct. They both deal with financial data, and many of the duties of a bookkeeper and an accountant are similar. Here we have listed some of their responsibilities and how they differ.

What is a bookkeeper and what are their responsibilities?

Bookkeepers are responsible for dealing with the accounts of a company, as well as the daily transactions that are performed. Their main task is to keep a record of what the transactions are rather than do any analysis. A few things that they also do are:

• Record incoming and outgoing transactions
• Invoice creation
• Payroll calculation
• Review bank statements

In addition to the above, there is a lot more they are responsible for. Highly experienced bookkeepers can deal directly with clients and employers and can advise on any financial decisions and best practices. Bookkeepers can gain the   Certified Public Bookkeepers (CPB) via one of the two top professional bookkeeper organizations: NACPB and AIPB. You can also obtain certification through college courses. A bookkeeper cannot do audits independently or review and compile financial statements, or create Income Tax Preparation Denver returns.

What is an accountant and what are their responsibilities?

Although the role of an accountant might seem simple, it is not just crunching numbers. It is a critical business function that involves giving financial advice, solving problems, and help make crucial financial decisions. This role can differ for different companies.  A few things that they do are:

• Make financial reports
• Use financial reports to advise on the financial health of the company
• Advice on the financial impact of business decisions
• Prepare income tax returns

Accountants have a college degree in accounting or finance. There are also various certifications such as Certified Public Accountants (CPAs), Chartered Global Management Accountant (CGMA), Certified Management Accountant (CMA), Enrolled Agent (EA) that accountants can undertake. Accountants have the skills which bookkeepers have, along with business acumen and thorough knowledge in management skills.

An accountant can help you deal with all the tax issues your business will have. Fast Action Taxes is a Denver tax accounting firm that advises businesses and individuals on compliance with tax laws. They also provide consulting solutions to smaller businesses. Contact Fast Action so that your next tax review goes smoothly.