Bookkeeper/Accountant: Po-TAY-to / Po-TAH-to Right?

I often call myself a bookkeeper, so at some point everyone comes to the question; "You're a bookkeeper, so you're an accountant - right?" And with the puzzled look on their face, I know it is time to ask a few key questions to be sure I understand what the person is asking. "Are you asking if I'm an accountant or if a bookkeeper is an accountant?" They are slightly different questions. So am I an accountant? Keep reading to find out.  ​

First let's define a few terms and breakdown some common functions. Bookkeeping refers to the process of recording, storing and retrieving financial transactions, while accounting refers to the systematic process of classifying, analyzing, summarizing, interpreting and reporting financial data. With this in mind, you might believe that the typical functions of bookkeepers are to collect, store, and retrieve financial data and the typical functions of accountants are to process, analyze, summarize, and interpret financial data. And to some extent you'd be correct. The bookkeeper of yesterday sat in your office collecting paper receipts, time sheets, etc, hand typing every detail into a ledger or accounting system and properly filing everything once it was entered. If that is your picture of a bookkeeper, please understand that technology has been taking on those types of roles.   

While there are still traditional bookkeepers out there, the advancement of technology is outpacing humans in the ability to collect, record, file and retrieve data. The accounting software of today and many apps now collect, store, and retrieve your financial data via smartphones utilizing cloud computing, and have much lower error rates than the person sitting at a desk. So while I offer the services of a traditional bookkeeper, those services are mainly accomplished through digital means.  

So if you're asking, is a bookkeeper an accountant? The Social Security Administration RS 02101.095 states, "Skilled bookkeepers may perform the duties of accountants and accountants often perform bookkeeper duties. There is no clear distinction between the two occupations." So a good bookkeeper should be able to process, analyze, summarize, and interpret financial data; and a good accountant should be able to collect, store, and retrieve financial data. 

So while I personally prefer the term "bookkeeper", I provide services that span the spectrum of collecting financial data to summarizing and interpreting financial data. So I provide a range of services that are specific to my experience and training in nonprofit and small business accounting. That said, I will point out that there are Accountants and Certified Public Accountants (CPA). CPA's have met state licensing requirements and primary functions are in audit services and public accounting; while Accountants are  not necessarily certified, yet still perform traditional bookkeeping, maintaining general business accounts, and taking care of general tax-related matters. In addition, there may be state specific regulations as to who can use the title "accountant." All accountants with the appropriate training and experience can perform a wide range of services, and may or may not have higher education degrees or certifications. 

So are you a nonprofit or a small business trying to bring some sanity to the digital financial services landscape for your organization? Click on the link below to schedule your free consultation with Candance Weaver Bookkeeping. 

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This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business adviser, or tax adviser with respect to matters referenced in this post. Candance Weaver Bookkeeping assumes no liability for actions taken in reliance upon the information contained herein.