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Difference between Restaurant Accountants and Restaurant Bookkeepers
A restaurant is a commercial venture which sells food and drinks to visitors. In the last few decades, restaurants have become very popular. People love visiting restaurants once or twice week. It has become a part of their recreational activity. Numerous people visit restaurants every day and undergo various transactions daily.
Moreover, restaurant owners have to make purchases for various food items from their suppliers on a daily basis. Some of the other operating expenses of a restaurant would be the salaries of the staff and rent of the property. So clearly a restaurant owner needs to keep a proper record of its financial statements.
Many restaurant owners who have a non-commerce educational background often put them in turmoil whether they require a bookkeeper or an accountant. The main objective of this article is to offer an insight regarding the difference between restaurant accountants and restaurant bookkeepers.
To simply put across, a bookkeeper only records the financial transactions of a business venture in an organized manner. On the other hand, an accountant makes a proper record of the financial affairs of an organization for a certain period.
Bookkeeping is about keeping a track of all the transactions of a business through journals and ledgers. An accountant enables you to keep track of transactions and prepare financial reports efficiently. They provide you insights into your business’ balance sheet, profit & loss account, and cash flow statements. So bookkeeping is basically a subset of accounting.
Common Difference Between a Restaurant Accountant and a Bookkeeper
- Role: Restaurant accountants typically hold higher-level positions and are responsible for overseeing the overall financial health of the restaurant. They provide strategic financial guidance.
- Education and Qualifications: Accountants usually have formal education and certification in accounting, such as a CPA (Certified Public Accountant) qualification. They have a deeper understanding of accounting principles and tax regulations.
- Responsibilities: Their responsibilities include financial analysis, tax planning, budgeting, forecasting, financial reporting, and strategic financial decision-making.
- Complex Financial Tasks: Accountants handle complex financial tasks such as financial strategy development, prepare taxes, financial audits, and long-term financial planning.
- Cost: Hiring a restaurant accountant is typically more expensive than hiring a bookkeeper due to their specialized skills and higher-level responsibilities.
- Role: Restaurant bookkeepers focus on the day-to-day financial transactions of the restaurant, ensuring accurate and organized recording of financial data.
- Education and Qualifications: While some bookkeepers may have formal education in accounting, it is not always required. Many gain experience through on-the-job training.
- Responsibilities: Bookkeepers handle tasks like data entry, recording sales and expenses, reconciling bank statements, payroll processing, and maintaining financial records.
- Routine Financial Tasks: They primarily handle routine financial tasks, maintaining the financial records and ensuring that financial data is up-to-date and accurate.
- Cost: Hiring a restaurant bookkeeper is generally more cost-effective compared to hiring an accountant because their role is more administrative and focused on data entry and recordkeeping.
So it can be concluded that restaurant bookkeeping is an initial step in the accounting procedure. If all the business transactions are recorded properly then there is a good chance of the later accounting processes being followed in the right manner.
For a small restaurant, keeping an accountant will be a good option as he will perform both the tasks. For a very large restaurant, both bookkeepers and accountants might be required as the number of transactions would be very high.
Recommended Post: 5 Signs That You Need to Hire New Restaurant Accountants
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