DO I NEED AN ACCOUNTANT OR A BOOKKEEPER?

Small business owners are frequently advised to employ a professional to assist them with their accounting needs, but do you need a bookkeeper or an accountant? Understanding which service you require can be difficult because both bookkeepers and accountants provide similar services.

So, what's the difference between a bookkeeper and an accountant?

The name "bookkeeper" is quite literal: a bookkeeper is someone who is trained and certified to keep the books and retain transaction data. A competent one can also provide advise, particularly on the timelines you'll need to gather all of your paperwork and how to collect and store it.

An accountant may also provide advise and emphasis on reporting, business analysis, and processes. A bookkeeper and accountant frequently collaborate, with the bookkeeper acting as a "boots on the ground" professional, fostering a deeper relationship between the accountant and the business owner. Small to medium-sized enterprises, on the other hand, may simply require a bookkeeper, saving them time and money.

At the Hollies, we take care of everything, including self-assessment tax returns and VAT returns. We also know CIS inside and out, arguably better than the majority of local accountants. We can do all of the functions of an accountant, but we do not provide tax advice.

What kind of education do they require?

If they desire, both bookkeepers and accountants can and should get certified through a professional organisation such as AAT.

Julie, the Hollies' Director, has a Payroll Management diploma and a Certificate in Personnel Skills. With an HND in Business and Finance from Staffordshire University, she began her career in bookkeeping. She is an ICB (Institute of Certified Bookkeepers) certified bookkeeper with a professional license from, and all of her employees are AAT certified (Association of Accounting Technicians).

It's crucial to know what qualifications someone have before hiring them because the phrases "bookkeeper" and "accountant" might be used without certification.

How can small-business owners determine the services they require?

It frequently varies by industry and the level of knowledge necessary. In order to structure our services, we ask our clients the following questions: What industry does the company operate in? Do they have a lot of fixed assets or a lot of inventory on hand? How many people do they employ? The more complicated the organisation, the more critical it is to ensure that the company's bookkeeper is backed up by a competent CPA who can offer guidance when needed. It's a fantastic collaboration that keeps lines of communication open and data flowing.

It's also a good idea to ask for client references and proof of E&O insurance, which both bookkeepers and accountants can obtain.

How much do bookkeepers and accountants cost?

In general, bookkeepers are less expensive than accountants, making them an excellent alternative for a company that need day-to-day knowledge. A good accountant can also act as a scout for anything that need additional guidance.

A competent bookkeeper is best found by word of mouth, which is how we have happily found many of our clients.

Meeting with a bookkeeper or accountant at the start of the partnership and on a regular basis afterward is also a smart idea. Bookkeepers are an excellent way to keep track of spending.

How do you know you're hiring a competent bookkeeper or accountant?

Request references, check their websites for information, and contact to inquire. A recommendation is really valuable.

What other characteristics are essential?

Make sure you find a bookkeeper and accountant that can communicate with you in straightforward English. Also, don't be hesitant to say, "I'm not sure I understand what you're saying." “Could you rephrase that?” Accounting may be a jumble of jargon and a language unto itself. Professionals can excel at what they do, but they must also be able to communicate concepts clearly.

It's also crucial to have a professional demeanour, a friendly disposition, and to be honest. You want to make sure that if something important needs to be discussed, it is done right away and not postponed.

When is it appropriate to engage a bookkeeper?

The earlier you start, the better. Many owners will try to sort out the information on their own, which will result in a rough transition. A decent compromise is to meet with an accountant when the company first starts off and then follow up on a regular basis, such as once a quarter. Request a quote or cost, and schedule a regular meeting into your budget. Books that are properly set up from the start can be a powerful tool for measuring and growing. A business's pulse is measured by its books, and excellent bookkeeping goes beyond basic financial expenses.