Why do Accountants Work with Bookkeepers?

What is the difference between accountants and bookkeepers? This is a question we are frequently asked. There is no real cut and dried answer to this question, but the following blog outlines some of the distinctions.

A bookkeeper will prepare the records in accounting software like Xero, Sage and QuickBooks. These bookkeeping duties would include entering supplier and sales invoices, recording petty cash and credit card receipts, entering bank transactions and ensuring the balance in the accounting software agrees to the amount of money in the bank account.

There are other record keeping duties that bookkeepers also complete including posting payroll journals, recording pre-payments and accruals. Experienced bookkeepers prepare cashflow forecasts and bespoke management reports.

A lot of accountants don’t get involved with bookkeeping and concentrate more on the end of year accounts, corporation and capital gains computations, self-assessment tax returns and providing tax advice.

Accountants work with excellent bookkeepers as they know that when they receive the completed bookkeeping work, they will be able to just focus on getting the year-end returns and tax computations finalised.

Bookkeepers also assist accountants during their busy periods like January too when they are under pressure to get all their self-assessment tax returns done before the 31 st deadline.

Some accountants will recommend their clients to bookkeepers they trust, some will charge their client for all the work and outsource the bookkeeping. Bookkeepers will also recommend their clients to accountants they work with, generally it is all about forging long-term business relationships with each other.

There will always be crossovers between accountants and bookkeepers, some accountants will offer bookkeeping, and some bookkeepers will do year-end work.

If you need help understanding any of the topics raised above or you’d like some advice about your bookkeeping, please get in touch by calling 01795 602 303 or 020 8087 1341 or email us on info@bookkeepersuk.com we would love to hear from you.

Here’s what some of the accountants we work with have to say about us:

“I have worked with Paul Cain for many years, there was an occasion in the past where I contacted Paul, to assist us at very short notice, with a client who had just parted company with their full-time financial controller. Paul was able to offer an instant solution, and provided full bookkeeping, and management accounts, for our client. Cain & Co assist us with several of our clients, and I would not hesitate to
recommend them to my clients, and business associates, needing bookkeeping assistance.”

Julien Upson – Hartley Fowler – Wimbledon, London, SW19

“Best bookkeeping firm, I have ever outsourced to. Fast turnaround, excellent value for money and accurate, well-presented work. Hopefully we will continue to work together for the foreseeable!”

Joanne Bell – Bells Accountants – Chislehurst, Kent, BR7