Contrary to popular belief, accountants and bookkeepers perform distinctly different tasks for the businesses they serve. Bookkeepers are responsible for on-going maintenance of their clients’ general ledgers. A bookkeeper’s common responsibilities consist of:
Compiling data on a daily basis
Categorizing expenses in the general ledger
Reviewing the general ledger for accuracy
Reconciling bank statements against the general ledger
Generating financial statements
Accountants use the accurate and up-to-date general ledger maintained by the bookkeeper to provide advisory services, such as:
Analyzing the company’s financial data
Preparing income tax returns
Providing tax planning advice