Are you wondering what the differences are between Bookkeeping and Accounting? Continue reading to find out what sets Bookkeeping apart from Accounting!
Although Bookkeepers and Accountants have similar roles, there are a number of differences between the two.
What Are The Differences Between Bookkeeping And Accounting?
The differences between Bookkeeping and Accounting include:
- Types
- Roles
- Effects on decision-making
- Skills required
- Level of education
- Salary expectations
Types of Bookkeeping And Accounting?
There are different types of Bookkeeping and Accounting. We will explain them below.
How Many Types Of Bookkeeping Are There?
There are only two (2) types of Bookkeeping. They are Single-Entry and Double-Entry Bookkeeping.
We have tabulated the definitions, examples of transactions that each type of Bookkeeping records, and differences between the two types of Bookkeeping.
|
Single-Entry Bookkeeping |
Double-Entry Bookkeeping |
|
|
Definition |
|
|
|
Examples of Transactions Recorded |
|
|
|
Differences |
|
|
What Are The Different Types Of Accounting?
There are (9) nine most common types of Accounting. They are:
- Financial Accounting
- Managerial Accounting
- Cost Accounting
- Auditing
- Tax Accounting
- Accounting Information Systems
- Forensic Accounting
- Public Accounting
- Governmental accounting
Role
Accountants and Bookkeepers have different roles. We will explain the different roles below.
What Role Does A Bookkeeper Play In A Business?
The role of a Bookkeeper is to keep track of different accounts, transactions, and reports for businesses in order to maintain their finances.
Their tasks include handling financial records like cash flow statements, bank reconciliations, and profit and loss statements by:
- Collecting them
- Organising them
- Storing them
Effects On Decision Making
The financial records are handed over from the Bookkeeper to the Accountant to analyse. From the analysis, decisions for the business are made to ensure that business operations run smoothly.
As a result, Accountants are more directly involved in decision-making within a business or an organisation.
Skilled Required
Just like any other career, Bookkeeping and Accounting also require a specific set of skills.
What Skills Should Bookkeepers Have?
Bookkeepers should have these skills:
- Organisational skills
- Time management skills
- The ability to do and enjoy data entry
- Be happy with working with numbers
- Pay close attention to detail
What Skills Do I Need To Be An Accountant?
You will need the following skills to be an efficient Accountant:
- Analytical skills
- Critical thinking skills
- Accounting organisational skills
- A good knowledge of Accounting practices and software
- The ability to prepare financial statements
- Knowledge of general business practices
Level Of Education
The level of education you need depends on which career path you would like to follow (Bookkeeping or Accounting) and where you will be working.
Do I Need To Study To Be A Bookkeeper?
No, you generally do not need to study to become a Bookkeeper. If you start your own small business or if you are doing the books for a family member who has a small business, you generally do not have to have any qualifications.
You will, however, need to be good with numbers and be very organised.
If you want to be a Bookkeeper for a registered company or organisation, you will need to be a knowledgeable and qualified Bookkeeper.
To gain the necessary knowledge and qualifications, you can study a Bookkeeping Course at Matric College. We have the following ICB Bookkeeping Courses available for you to study:
Can I Become An Accountant Without Studying?
No, you will have to have a formal qualification to be an Accountant. Although you will not need a Degree, you will still need some sort of tertiary-level Qualification.
Where Can I Study Accounting?
You can study Accounting Courses at most of the Universities and Colleges in South Africa.
The following distance learning Colleges will help you study from the comfort of your home or anywhere in the country:
At Matric College, we offer the following ICB Financial Accounting Courses:
- Certified Financial Accounting: ICB National Diploma
- Technical Financial Accounting: ICB National Diploma
Can I Study Accounting If I Do Not Have Matric?
Yes, you can study an Accounting Course without Matric at Matric College. All our ICB Courses can be studied without Matric.
You will need a Grade 10 Certificate to qualify to enter our ICB Financial Accounting Programme.
Salary Expectations
There is a notable difference between the salaries of a Bookkeeper and an Accountant.
Factors like education, experience, and networks, have an influence on how much each will get paid.
We have tabulated the salaries of each profession below.
|
(per year) |
(per year) |
|
|
Entry-Level Position |
±R 180 000 |
±R 258 000 |
|
Senior Position |
±R 360 000 |
±R 5 490 000 |
Can I Be A Bookkeeper With No Experience?
Yes, you can be a Bookkeeper with no experience.
Everyone starts off with no experience. We suggest that you apply for an internship in Bookkeeping. One of the best ways to gain experience is through internships.
An internship gives you hands-on experience in the workplace, professional opportunities, and allows for development in your career. You will gain relevant skills that you can add to your CV.
Which Is The Better Profession Between Accounting And Bookkeeping?
Which profession you find better depends on your personal preferences.
If you prefer a career that is highly reputable and admired, and if you will be able to maintain a good work ethic, you can become an Accountant.
If you are a perfectionist, enjoy sorting or organising things, and like working with numbers, Bookkeeping would be a great career path for you!
While a Bookkeeper only requires a fundamental knowledge of accounting and a basic certification, a certified Accountant is a higher expert in the field. Because of the higher level of education and more roles and experience, an Accountant has, they are paid more than Bookkeepers.
An Accountant has a more in-depth insight into the Accounting aspects of a company and can offer feasible business advice.
How Will Knowing The Difference Between Bookkeeping And Accounting Help Me?
Understanding the differences between Bookkeeping and Accounting will help you decide which career you would like to enter.
Once you have decided, you can get in touch with one of our Course Experts and begin your journey to becoming a Bookkeeper or Accountant!
Author: Tammy Fredericks
Editor: Stacey Christian
Date Published: December 19, 2022