Throughout the pandemic, one in five individuals changed their line of work to a new career path. COVID has caused employees to reevaluate their working situations. Most are looking to change jobs to fit their needs.
If you are interested in changing your career to one in business, you might be considering a career in accounting or bookkeeping. These two jobs are often seen as interchangeable. But, they have differences that you should be aware of to choose the best path for you.
So, bookkeeping vs accounting, which is better for you? Read on to learn about each of these career options.
What is Bookkeeping?
Bookkeeping is a financial position that involves accurately recording all business transactions. They also organize transactions so accountants can analyze those financial recordings.
Bookkeepers’ daily tasks include
- Maintaining the ledger
- Creating invoices
- Generating financial reports
- Managing payroll
- Recording payments
- Maintaining accounting systems
In general, bookkeepers ensure money is being collected and paid by a business on time. Accurate recording of financial transactions is essential. It helps prevent legal issues and allows companies to make informed business decisions.
What is Accounting?
Accounting uses accounting principles to analyze businesses’ financial transactions. Through their analysis, they offer businesses financial advice to improve their business strategies. They are also knowledgeable about financial laws and rules, especially related to taxes.
An accountant’s daily job duties include:
- Analyzing financial reports
- Preparing taxes and tax forms
- Forecasting outcomes of financial decisions
- Developing budgets
Accountants focus on the big financial picture of a business. Accountants often oversee bookkeeping procedures. This management ensures they have the best financial information to work with.
Bookkeeping vs Accounting Career Options
Jobs in the accounting field are expected to grow by 13% by 2022, including bookkeeping jobs. Now that you understand the difference between the two, let’s dive deeper into these career options.
Bookkeeper job titles might just be listed as bookkeepers. But you might also see these jobs listed as a financial clerk, accounting assistant, or administrative specialist.
Skills employers are looking for in bookkeepers include being very detail-oriented, computer savvy, and highly organized. You should be interested in math if you want since you will be working with numbers daily.
You do not need any special education to become a bookkeeper. However, you can get certified as a Professional Bookkeeper™. A certification can help your resume stand out from others during the hiring process.
Accountant job titles include accountant, auditor, and controller. Accountants can specialize in accounting for specific industries like non-profits or the government.
Accountants need some of the same skills as bookkeepers. But accountants also need problem-solving, analytic, and communication skills. These skills help them generate and present their financial recommendations.
Accountants need to have more education than bookkeepers. They need specific knowledge of accounting principles and tax rules to provide accurate analysis. Most colleges and universities offer accounting programs to teach these skills.
Start Your New Career
In business, it’s not bookkeeping vs accounting; the two roles are both vital to an organization and rely on each other. If you love math, each is a stable career path you can pursue. Now you are ready to decide which is best for you so you can achieve your goals.
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