How does an accountant differ from a bookkeeper?

Accountants are primarily involved in the presentation and interpretation of financial data, which allows businesses and stakeholders to make informed decisions. They analyze data accumulated over time, provide insights into financial performance, and prepare reports that summarize the organization's financial position. This differs from the role of a bookkeeper, who typically focuses on recording day-to-day transactions accurately, ensuring that financial records are maintained systematically.

The process of accounting encompasses various functions including budgeting, forecasting, financial analysis, and the development of financial statements, all of which are critical for strategic planning and regulatory compliance. Thus, while bookkeepers manage the details of record-keeping, accountants elevate this information to provide a comprehensive view of financial health through thorough analysis and reporting.