Are you performing an accounting or bookkeeping function?
Bookkeepers
They are required to maintain precise and accurate records, they produce the critical reports that keep the shareholders and directors up to date on the financial position of their company.
They usually maintain the general ledger, cash books, ledgers & other accounting information.
Accountants
Accountants are responsible for the design and management of the financial systems for the company. They prepare monthly financial statements, cash flows, budgets and tax returns at year end.
Some accountants perform bookkeeping functions too.
There are different "categories" of accountants.
Some may have graduated from their Universities or ACCA with accounting qualifications but NOT PURSUE professional qualifications.
An accountant by academic qualifications may not be a CPA. A CPA has to go through rigourous training and pass extra examinations before being recognised by his/her local accounting body.
There are diploma holders who hold positions usually reserved for accountants as they are deemed to be able to perform the role of accountants. However, there are limits because certain industry/listing requirement requires a CFO to be a qualified accountant (CPA).
Just like a lawyer may not be called to the bar, but he could work as a legal advisor or consultant in other fields. See here
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2 comments:
Thank you so much for sharing difference between accounting and bookkeeping in such precise manner. Keep sharing.
Accounting firms in Singapore
Great breakdown of the differences! A lot of people tend to use “bookkeeping” and “accounting” interchangeably, but you’ve made it really clear how they complement each other but serve distinct roles. It’s like bookkeeping lays the groundwork, and accounting builds the structure on top of it. Super helpful for anyone running a small business or just trying to get a better handle on their finances. For those based locally, looking into accounting and bookkeeping services in Singapore can be a smart move to stay organized and compliant while focusing on growing the business.
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