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How accountants and bookkeepers can work together

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5th Jul 2016
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After exploring the bookkeeper and accountant relationship, Mike Foster considers how accountants and bookkeepers could work together in the future.

When people are asked about bookkeeping and accounting, they find it difficult to describe the differences between each.

Over the last couple of years, I have spoken to many bookkeeping software providers. The general feeling is that the UK has some very blurred lines between accountancy and bookkeeping, when compared to other markets overseas. Some of us may argue that the product development of such providers has contributed to this ‘hybrid’ approach, as many are typically capable of aiding data capture and input while building financial statements.

The functions of bookkeeping and of accounting share common goals, but perhaps they each make up a different stage of the financial processes in support of business owners.

In observation, some of the best firms and practices know their true expertise and deliver this really well, rather than doing many things simply okay.

Accountants and bookkeepers could work together in a much better way across the profession if there was a greater awareness of roles, greater appreciation and some clearer role definitions.

I listen to numerous people describe bookkeeping as providing the day-to-day transactional support that maintains the general ledger with accuracy. Similarly, accounting is a next level process that makes sense of the trial balance previously compiled to produce tax computations, financial models and advice using such information. However, rightly or wrongly to suit considered business models, many still look to offer both services, even if it is beyond the primary skill set of the individual or team.

Some areas of support for business owners fall very clearly to the accountant or to the bookkeeper, but could you list the various steps of support your clients desire or need and then collaborate with other professional service providers to deliver the most effective experience.

Some good examples of the less obvious areas are, recommending and setting up the software, suggesting add-ons for the best experience, proactive advice or creating a day-to-day system that focuses on the detail.

I also hear many comments about qualifications and how accountants have to pass exams and gain experience to qualify, whereas a bookkeeper just has exams and rarely the experience when they qualify. We have to accept that there are some different qualification criteria, but we should also respect this. Perhaps where we see the value of working together, then could the accountant help provide this invaluable experience. My own experience saw the introduction to bookkeeping by Roger French of Clark Howes in 2003. He recommended the journey, offered some training and experience with his team, gave qualification guidance and then we proceeded to work closely.

With such a collaborative approach, could an external bookkeeper provide these services for a firm that does not want to actually do the bookkeeping or cannot offer the service at a profitable rate? Perhaps an accountant could offer year end compliance support or tax advice and returns for bookkeepers, similar to a white labelled offering?

What is quite clear is that not all accountants are the same and not all bookkeepers are the same. Additionally, the services offered under the title of bookkeeping or accountancy can be very different to the next provider. Therefore, even if you have a past experience, don’t let that stifle the potential benefits of collaborating with another provider that can aid your business model, your profitability and your clients’ success.

I do however accept that not all accountants and bookkeepers will want to collaborate and share clients as this is not their business model.

For certain, we are in a time of change and the pace of change, due to software and technology, is greater than ever. Perhaps we can’t say how such a working relationship may operate in the future, but you could argue that collaboration may be in everyone’s interest as we continue our journey and strive to exceed client expectations.

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By Ken Howard
07th Jul 2016 09:28

Apart from a few generalities and stating the blindingly obvious, is there any point to this article?

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