Discussion:Bookkeeping v/s accounting

Going through life changes here and I appreciate all who endure my postings whilst I find myself.

Been doing taxes several years now, studying for the EA, have no fear of failure but know that doing taxes only won't be enough to sustain me.

Can anyone tell me from experience and practice(not theory)the difference between bookkeeping and accounting? Also, which would be better for a person who prefers self-employment. I'll obviously have to further my education either way but I'm concerned about the practical applications of an accounting degree w/out experience.

Bookkeeping is also done by those who wish to charge less than those who do accounting, or by those whose education and experience does not lead them to call their activity 'accounting'.

btw, for extra credit, what's the only word in English with three repeating letters in a row?

well, that's only two letters repeated four times.

Who's buried in Grant's Tomb?

I remember reading somewhere that, after the last journal entries are posted and the books are ready to be closed, "accounting happens" meaning that the scientific theory is applied to the raw numbers. I have no idea whether this is true but I liked the idea of it.

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bookkeeper is a "transactional" position, in the "good ole days" some posted to G/L some did not BUT the accountant took responsibility for a fully posted G/L and closed it.

I once interviewed a bookkeeper for a client in the late 80's and asked her if she went through to the general ledger.

She responded "General who"?, I said never mind.

There's room for a good bookkeeper in every town. Market yourself to all the CPAs in your area, especially the medium sized firms, and they can recommend you to their clients. Be willing to sign a no-compete on tax, such firms would probably not be too concerned about your tax practice if it's smaller type clients anyway.

Here's a place you should check out if you haven't already.http://www.aipb.org/

.*If you can't afford to buy a leather shoe, at least try to steal a pair at the gym. I've stolen several pair myself off people who fall asleep in church; since they're not paying attention to the Lord, I feel entitled as an agent of the Lord's punishment. If you decide to do this, leave your old pair in the collection plate for the poor.

The bookkeeper preened and proudly told him, "As of Friday noon we have $33,789.12."

Then the CEO asked the CPA how much was in the same account.

The CPA replied "How much would you like to be there?"

After the meeting the irate bookkeeper asked the CEO why the CPA gets paid so much more than her.

"Because he's got creative vision!" he replied.

"What do you mean?"

"He sees our finances as they should be and not as they are."

"But, but... he doesn't know anything about the books."

"I know and I can't tell you how many times that's saved us in audits!"

Moral of the Story: If you're going to lie, don't get confused by the facts.

I am now a Civil War buff, word sluth and shoe engineer. Still foggy on bookkeeper v/s accountant though.  :)

No, really thank you. I do appreciate your in put.

In my state, you can call yourself an accountant without a CPA designation, but you can't do attest functions, and obviously, you will not get hired by a company as an employee if they specifically want a CPA, nor will you get hired by a client who is looking for attest work, or who specifically wants a CPA.

However, there is room for good bookkeepers as well. Check out that aipb site.

A good metaphor would be a paralegal/lawyer, or a dental assistant/dentist.

There are some good bookkeepers out there, typically they are full charge bookkeepers. If you want to be a bookkeeper, get some books on it and you will be able to do the basics.

I once worked with a bookkeeper who thought she was a CPA (she said she was just as good). Anytime she didn't know something (often) it was "well I know everything EXCEPT" (the tax code sections, financial statement disclosures, GAAP ....), personally I have next to no respect for most of them.

Bookkeeper:[2]

Maintains and records business transactions. Balances ledgers and prepares reports. May require an associate's degree or its equivalent with 2-4 years of experience in the field or in a related area. Familiar with standard concepts, practices, and procedures within a particular field. Relies on limited experience and judgment to plan and accomplish goals. Performs a variety of tasks. Works under general supervision. A certain degree of creativity and latitude is required. Typically reports to a manager or head of a unit/department.

Accountant:[3]

Prepares balance sheets, profit and loss statements, and other financial reports. Responsibilities also include analyzing trends, costs, revenues, financial commitments, and obligations incurred to predict future revenues and expenses. Reports organization's finances to management, and offers suggestions about resource utilization, tax strategies, and assumptions underlying budget forecasts. May require a bachelor's degree in area of specialty

I have performed both tasks for private employers. I belong to the AIPB (American Institute of Professional Bookkeepers) the organization which Harry mentioned above. I also have an accounting degree, and have recently undergone some life changes of my own. I am waiting for the confirmation email to come through from my profile page so I can activate the email link. When it becomes active I would be happy to discuss with you the various pros and cons of education programs either as offered by the AIPB, or as available from most community colleges. Either, in my opinion offer a good means to build a foundation in the basics you would need for either role. Dan 01:27, 29 October 2009 (CDT)

Harry Boscoe 00:09, 31 October 2009 (CDT)

My bad. Apologies to the both of you.

PVCC-CCIFP 04:42, 31 October 2009 (CDT)

Crow

Harry