To an average business owner in Calgary would ask: What is the difference between accountant and bookkeeper?
In a lay term, bookkeeping is the bolts and nuts of a business paper work. It is the preparation of all paperwork prior to accounting. Therefore, without bookkeeping, there is no accounting.
When looking for accountants calgary you then have the other half of the equation, a bookkeeper prepares the books and accountants finish them.
Recording of all data of a business transaction in order, before transferring to accountant. Accountancy involves checking the standards, principals and statutory requirements if are properly placed are some of the major functions. All these involve deeper analysis, and thats the reason why accounting is somewhat more complex.
Often, it is joked that the difference between an accountant and bookkeeper is the price. This is especially true. It is common for small business not to have both the bookkeeper and accountant. Its all because bookkeepers are collecting lower rates. The bookkeeping is long and tedious paperwork, gathering information and placing it in proper order. It would save vast amount of money, if the bookkeepers can handle the paperwork before handling to the accountant, thereby avoiding the accountant taking all the responsibility which would definitely mean more time on a higher rate.
It is very important to understand the different kinds of bookkeepers when it come to the subject of cost:
There are large companies or firms, and there are people who often work at home. Those working from home can be effective as their fees are usually lower and can have more impact on the typical small business but not on medium and big company.
The experience can be a little more friendly and personal rather than dealing with an employee. The relationship with your bookkeeper is important because it can be useful if there is a problem or confusion for either party regarding the accounts. A delighted bookkeeper will be happy to advice and to help in any business difficulty you may face.
If you have both an accountant and bookkeeper, it is important that they understand the expectations of each others. The two should understand that they both have hand over period somewhere along the line, and there should be no error of omission and commission.
A professional bookkeeper will communicate with you monthly and pass across to you everything that has been happening in the company. With this information you would have good understanding of where the company is and where you would it to head to. It will also allow you to have good insight of how you are handling your books.