Often people use the term bookkeeping services and accounting services interchangeably. But in reality, they both are different altogether. In fact, both these services have different scopes and implications. In this article, we will explain the difference between these two terms which will help you better understand these services.
Let us first learn the meaning of bookkeeping services.
Meaning of Bookkeeping Services
Bookkeeping services is the activity of maintaining and recording financial transactions in an accurate and systematic manner. The focus of bookkeeping services is to maintain the financial records of the company and report them for further accounting services. Bookkeeping services involve making journals and ledgers.
Let us now learn the meaning of accounting services.
Meaning of Accounting Services
Accounting services have a much wider scope than bookkeeping services. The accounting services involve recording and reporting of the financial affairs of the company for a particular time period. It involves preparation of balance sheet, profit and loss statement and cash flow statement. With these services, a business can know the financial position of the company. This service can be outsourced to a reputed firm who has the required experience and expertise. IMC Group is one such organisation that leads the market in providing outsourcing finance and accounting services.
Let us now learn the major differences between a bookkeeper and an accountant.
Differences between a Bookkeeper and an Accountant
An accountant is a person who has the expertise and knowledge of the accounting process. The job of an accountant is very complex in nature and requires special analytical skills. The accountant must hold at least a bachelor’s degree. An accountant becomes a Certified Public Accountant if he has passed a higher level examination of CPA. On the other hand, a bookkeeper is one who has the basic knowledge of accounting and has taken several accounting courses. The basic responsibilities of the bookkeeper include collecting financial statements, balancing the accounts, reconciling the figures, etc. Bookkeeper’s job is mechanical in nature and it does not require any special skills.
The accountant verifies the data collected by the bookkeeper and analyses the performance of the company. Even though the job of bookkeeping and accounting are totally different yet there are some similarities between the two. In this section of the article, we will learn about the similarities between accounting and bookkeeping.
Importance of Bookkeeping in Accounting
The bookkeeper collects and records all the data of a financial transaction. The duties of the bookkeeper make the job of an accountant easier and simpler. The accountant gets the financial transactions in an organised manner and the work of accounting can be done with ease. The bookkeeper collects data from all the departments of the company and the accountant verifies the data. The major decisions of the company are taken after the outcome of verification and analysis of the bookkeeping data by the accountant. Therefore, the job of bookkeeping is very important for any business to be successful in the long run.
Let us now learn about the responsibility of the bookkeeper and accountant.
Responsibility of Bookkeeper and Accountant
The main job of the bookkeeper is to maintain and record the financial transactions on the basis of single entry, double entry and virtual bookkeeping system. On the other hand, the responsibility of an accountant is diverse. An accountant has a wider job scope that involves not just financial accounting but also management accounting, cost accounting, responsibility accounting and HR accounting.
Looking for Accounting and Bookkeeping Services?
IMC Group is one of the leaders in providing accounting and bookkeeping services in Singapore. Every company that is registered in Singapore has to comply with the Singapore Companies Act and maintain financial records accordingly. We at IMC Group, fulfil all your needs by maintaining proper books of accounts and meeting all the compliances on time. By hiring us for accounting and bookkeeping services you not only save your money but also get an expert opinion on various financial matters. Our services assist you in focusing on the core competencies of the business and you can work with increased efficiencies. To avail our services, you can contact us via email and know our quotation. We will be glad to serve you.