Counting Buck$

Bookkeeping and Accounting Job Titles

Clarification of Accounting Job Titles

This post is for the purpose of clearing up confusion about different accounting roles and titles. I have listed some here along with a description of their duties. I was recently asked ‘Why would you hire a bookkeeper and an accountant when you could just hire one of them to do both jobs’? As you can see in 1. and 2. below, their job duties are different, as are their pay levels. In addition, you would need a bookkeeper on a daily basis to carry out tasks. But you wouldn’t need an accountant every day, unless you have a very large organization. It would save lots of money to hire a bookkeeper for the daily tasks at a cheaper rate than what an accountant would charge. Then you can hire an accountant on an, ‘as needed’ basis to do specific work.

A bookkeeper in a small company may do several of these jobs, including accounting clerk, accounts payable clerk, accounts receivable clerk and payroll specialist. In general, is it the volume of work that determines whether you need other people to do each of these jobs separately. My bookkeeping jobs have included these five areas. When you do the payroll, it includes a bit of Human Resource work too. You may be involved in the hiring processes and benefits administration, such as health insurance or 401k’s. While your business is small, a single person can handle all these tasks. And in the beginning, that person may be you!

You may need to do all these tasks while running your business and being the boss. No pressure! I will show you how to set up your bookkeeping and run it in the easiest way possible. It really is not complicated or difficult to do, as you’ll see.

Also, note that income tax preparation is NOT included in bookkeeping. You would need to find someone else to do that. A bookkeeper will prepare other tax reports, if you have payroll. I have prepared 941, 940, Suta, and W2 on a regular basis. If you only have contractors working for you, then you only need to file the 1099.

Now after your bookkeeper has completed all the transactions for the year, they can turn over a copy of the records to your tax preparer so they can do your income tax return. This is the main reason for your bookkeeping, so that you are ready for tax time each year.

I hope this helps your understanding of the different accounting roles.

1. **Accountant**: Analyzes financial data, prepares financial reports, ensures compliance with regulations, and provides advice on tax strategies and financial planning.

2. **Bookkeeper**: Records financial transactions, maintains accurate financial records, reconciles accounts, handles tasks such as invoicing, payroll processing, and managing accounts payable and receivable.

3. **Accounting Clerk**: Assists with various accounting tasks such as data entry, filing documents, processing transactions, preparing financial reports, and communicating with clients or vendors.

4. **Accounts Payable Clerk**: Manages outgoing payments by processing invoices, verifying expenses, reconciling accounts, and ensuring vendors are paid accurately and on time.

5. **Accounts Receivable Clerk**: Handles incoming payments, maintains records of customer accounts, sends out invoices, tracks payments, and follows up on overdue accounts.

6. **Payroll Specialist**: Processes employee wages, benefits, and taxes, ensures accurate and timely payroll processing while adhering to relevant regulations and company policies.

7. **Financial Analyst**: Analyzes financial data, market trends, and business performance to provide insights and recommendations for decision-making, creates financial models, conducts risk assessments, and evaluates investment opportunities.

8. **Tax Preparer**: Assists individuals and businesses with preparing and filing tax returns, ensures compliance with tax laws, maximizes deductions, and helps clients minimize tax liabilities.

9. **Auditor**: Examines financial records, internal controls, and business operations to assess compliance, detect fraud, and identify areas for improvement, may work internally within a company or externally for auditing firms.

10. **Controller**: Oversees accounting and financial reporting functions, manages financial activities, develops budgets, and implements internal controls to safeguard assets and ensure accuracy in financial reporting.

11. **Chief Financial Officer (CFO)**: Provides strategic financial leadership, oversees all financial operations, manages financial planning and analysis, and ensures the organization's financial stability and growth.

12. **Cost Accountant**: Analyzes costs related to production, operations, or projects, develops cost accounting systems, prepares cost reports, and provides insights for cost reduction and efficiency improvement.

13. **Budget Analyst**: Develops, monitors, and manages budgets for organizations or projects, analyzes financial data to forecast future budget needs, and provides recommendations for budget adjustments.

14. **Forensic Accountant**: Investigates financial discrepancies, fraud, or other irregularities, analyzes financial records and transactions, prepares reports for legal proceedings, and provides expert testimony in court.

15. **Staff Accountant**: Assists with various accounting tasks such as preparing financial statements, reconciling accounts, analyzing financial data, and providing support to senior accounting staff.

16. **Internal Auditor**: Conducts internal audits to assess the effectiveness of internal controls, compliance with regulations, and efficiency of operations, identifies risks and recommends improvements.

17. **Government Accountant**: Manages financial activities for government agencies, prepares financial reports, ensures compliance with governmental regulations, and may provide advice on budgeting and fiscal policies.

18. **Certified Public Accountant (CPA)**: Provides accounting services to individuals, businesses, or organizations, may specialize in tax preparation, auditing, consulting, or financial planning, and maintains certification through ongoing education and professional development.

19. **Financial Controller**: Oversees financial reporting, accounting operations, and internal controls, ensures compliance with regulations and accounting standards, and supports strategic financial decision-making.

20. **Accounting Manager**: Manages accounting staff, oversees day-to-day accounting operations, ensures accurate and timely financial reporting, and collaborates with other departments to support organizational goals.