Career Advice: Accounting Vs. Bookkeeping

The difference between bookkeepers and accountant is subtle yet significant to comprehend when considering a career in either field. Bookkeepers are responsible for day to day financial transactions documentations of the business. Accountant focuses more on the big picture, not just the vast minutiae involved with bookkeepers.  An accountant reviews and analyzes all the money related data recorded by the bookkeeper and utilize it to direct reviews, create monetary proclamations and gauge future business needs.

Bookkeeping and accounting are similar and work side by side. They require similar entry skills and attributes.

There is important difference exist like work done and what required being successful.

The following bookkeepers Melbourne analysis compares the educations requirements, skills, starting salaries and job outlooks for accounting and bookkeeping.

Education Required

Both accounting and bookkeeping don’t impose hard-and-fast educational requirements. There are plenty of bookkeepers and accountant who operate with just high school diploma.  The company decides on what required in hiring the right candidate for them.

An accountant needs more education than a bookkeeper.  Accountant in the modern world holds bachelor’s degrees, advanced degree or even MBAs with accounting or finance concentration. The accountant needs to sit for CPA exam, certified public accountant.

You can become a bookkeeper right of high school and have experience with numbers. Also, visit our best post here. Bookkeepers who excel at their jobs are sometimes promoted to accounting positions.

Career Advice: Accounting Vs. Bookkeeping

Skills Needed

Accountants and bookkeepers work all year round with numbers.

Speaking of number crunching, that job duty is more common to bookkeeping than to accounting. Companies task bookkeepers with tasks such as recording journal entries and conducting bank reconciliations. As a bookkeeper, your attention to detail must be almost preternatural.

Accountant has to crunch numbers and must have sharp logic skills and big-picture, problem-solving abilities. Bookkeepers, on the other hand, make sure the small pieces fit properly into place; accountants use those small pieces to draw much bigger and broader analysis.

Starting Salaries

Accounting covers a broad gamut of entry wages. How much you make as a first-year accountant depends in large part on the particular career path you pursue.

Public accounting pays the most to a candidate right out of school. Click this link to read more.  Depending on the city, you can expect to earn between $50,000 and $60,000 your first year as a Big Four accountant.

Bookkeepers often get paid hourly wages rather than annual salaries.

  • The average salary for someone new to the business is between $15 and $16 per hour.
  • This is the equivalent of $31,200 to $33,280 per year, assuming a 40-hour work week.

In bookkeeping, extra hours are common during the busy season from January to April with bookkeepers Melbourne.

Which One to Choose

For a long-term career, accounting has a tremendous upward mobility, with personal career paths plus income potential than bookkeeping. The education requirement to competitive in the field is greater with a payoff, in the long run, being immense. Bookkeeping is a great starting point if you are interested in the field but not fully committed and want to test the waters.

Bookkeepers Melbourne is an ideal bookkeeping candidate if you want a good job with a modest wage and decent security but may not be looking for a long-term career. Bookkeeping offers much lower barriers to entry, and the competition you face in the job search is less fierce check more with