Is an accounting technician a bookkeeper

What exactly are accounting and bookkeeping, and what do these terms signify?

Because bookkeeping is an integral aspect of accounting, the first thing to bear in mind is that the duties of an accountant and a bookkeeper often overlap. Bookkeeping, which is the first phase in the accounting process, refers to the act of "keeping books," as the phrase indicates.

A company's financial transactions are supposed to be recorded in a manner that is both accurate and comprehensive, and this responsibility falls on the bookkeeper of the company. It is, for the most part, a mechanized procedure that does not require any kind of analysis of the monetary transactions but rather merely a recording of the transaction itself.

Bookkeepers, on the other hand, play a very important part in the smooth operation of a business. For instance, they are responsible for keeping track of the company's payments and receipts while ensuring that the appropriate amounts are paid and received (and at the right time).

In order to accurately record each and every transaction that takes place on a daily basis, the bookkeeper will adhere to a predetermined set of protocols and do so in a repetitious manner. At the conclusion of the day, as well as at the end of the month, a tally of this information is performed. Bookkeeping tasks that are commonly performed, such as sending invoices to customers, recording cash receipts from customers, recording invoices from suppliers, paying suppliers, recording inventory, processing payroll, and dealing with petty cash transactions, are more than sufficient to meet the accounting requirements of very small businesses.

On the other hand, an accountant is someone who concentrates on the larger financial picture and who is responsible for duties that have an impact on the whole accounting process. They would then categorize the financial information, analyze it, summarize it, interpret it, and report it after building on the information that was supplied by the bookkeeper. The bookkeeper is responsible for keeping the accounts up to date and ensuring their accuracy; nevertheless, the accountant is the one who does the additional financial analysis that gives the books their significance.

The accountant would analyze and interpret the company's financial data in order to make projections about the company's financial accounts and assess the company's level of productivity. In addition, the accountant has the option of working in a diverse range of fields, including financial accounting, management accounting, tax accounting, auditing, or financial services, among others.

The phrases "bookkeeper" and "accountant" are often interchanged because of the striking similarities between the functions performed by the two professions.

Chartered Accountants and the Accounting Profession

There are a lot of individuals out there that call themselves bookkeepers, but in reality they are licensed accountants. Their official term, "Accounting Technicians," is meant to distinguish them from "Chartered Accountants." All of our bookkeepers have met the requirements outlined by the Association of Accounting Technicians, often known as AAT, which is the professional organization that sets the criteria for bookkeeping qualifications. AAT certifications at higher levels include topics such as auditing, taxes, drafting statutory accounts, management reporting, and self assessments.

Chartered Accountants are professionals who have attained the required level of education at the bachelor's degree level, in addition to gaining experience in the workplace and participating in a professional competence program. In addition, Chartered Accountants are members of a professional body, such as the Association of Chartered Certified Accountants.

Do I need the services of a Chartered Accountant to complete my annual report, accounting, and tax returns?

To answer your question in a nutshell, no, you do not need the services of a Chartered Accountant in any form if you run a small company or are self-employed.

It is a legal necessity that bigger firms and PLCs undergo an Annual Audit. If you want a Chartered Accountant to carry out a statutory audit for your company, you will first need to comply with this legal obligation.

This is the point at which this is required;

Charities

Any charitable organization that has a gross income of one million pounds or less for accounting periods that end on or after March 31, 2015 (or of half a million pounds or less for accounting periods that ended before March 31, 2015), or of half a million pounds or less for accounting periods that ended before March 31, 2015, has the option to opt out of undergoing a full audit (unless both their gross assets and gross income exceed two hundred fifty thousand pounds). The vast majority are expected to acquire an alternate kind of quality assurance in the form of an independent examination.

Companies

Firms that fall within the definition of "small companies" in the Companies Act of 2006 are often excluded from auditing requirements, unless they are part of a larger group or are charities that are obliged to follow the charity audit standards.

The following is a list of the conditions that must be satisfied for a firm to be considered a small business: the company must not have been disqualified for either this year or the previous year, and it must also meet two out of the three of the following requirements: