Are you considering a career as an accountant?
If so, you’ve likely researched bookkeeping services and may think that this is a part of becoming an accountant.
But these two services are rather different and you should consider which route works best for you.
Should you look into becoming a bookkeeper or are accounting careers calling your name? You want to consider your skill-set and what you’ll enjoy doing more.
Here’s the difference between bookkeeping and accounting:
Certifications
Neither occupation requires certification to get started. However, advanced accounting services will require you to receive certification. This often includes work related to filing tax returns or offering financial advice.
These latter services fall under the realm of accounting. For bookkeeping, there’s no need to receive certification to get started.
Nevertheless, a professional bookkeeping designation can give you a leg up over your competitors.
Skills
Both bookkeeping and accounting services require you to have excellent mathematics skills. You also have to ensure you’re meticulous.
But the key difference between bookkeeping and accounting is that you’ll have to have improved communication skills for the latter.
With bookkeeping, your main focus is to keep records of your client’s earnings and expenses. This is all they’ll need from your end.
With accounting, you’ll have to consult with your client regarding their financial records. For example, you’ll have to let them know if their expenses are increasing each quarter. You’ll also want to let them know how they can increase their profits.
With accounting, your clients will expect you to go further than just keeping records. They’ll want you to help them improve their financial situation and help their financial health.
Earnings
As a general rule, an accountant will earn more than a bookkeeper. This is because an accountant offers specialized services to their clients.
The requirements for certification also make accountants able to charge high prices for their services.
For a bookkeeper to match an accountant’s salary, they’ll have to acquire a lot of clients. An alternative is to work with a few clients and charge a high price.
An accountant can succeed by working with individuals or businesses. A bookkeeper would need to focus on working with businesses to earn a lucrative income.
You want to consider becoming a bookkeeper if you want to earn a great income but also have lots of free time. Accounting careers can promise a high salary but require a much greater time commitment.
That’s The Difference Between Bookkeeping And Accounting
Now that you know the main difference between bookkeeping and accounting, you can decide which is the best route for you.
Accounting requires certifications for offering premium services. Bookkeeping doesn’t require certification to get started. However, bookkeeping certifications can help you stand out.
The skillset for accounting services is much greater than bookkeeping. Accountants can also earn more but need to work longer hours. Bookkeeping can offer a great salary with fewer work responsibilities.
You can find more great tips on becoming a bookkeeper or offering accounting services on our blog!
