CICs are a community interest company. They serve a vital function in promoting community growth and development. The government of the U.K. designates them not as a charity, but as a benefit to society.
But, unfortunately, everyone needs to do their taxes. Record keeping is a vital part of a well-organised corporation. Sometimes it can be difficult to distinguish your needs between CIC accounting vs. CIC bookkeeping.
But, we are here to help you make these decisions. We will first explore the somewhat difficult distinctions between an accountant and a bookkeeper. And then we will help you decide the right service and software for your needs!
What Is Accounting?
An accountant is a financial expert who specializes in the understanding of and advisory of the accounts. Accountants perform an important function for every business. They make sure the business’ accounts are accurate and up to date.
They record all the financial information for the business for tax purposes. They record the earnings and losses of the business to file tax returns. But, accountants generate reports for the growth of the company as well.
They do not just record data and give it to the management. Rather, they advise and guide the business in financial matters. They help businesses grow and expand based on their financial position.
Last, they provide details about the business’ losses and where they lose money. In other words, if they notice the money going to waste, they inform management. Then, they provide feedback and advice about what they should do about their financial losses.
Aspiring accountants should become familiar with the AAT (Association of Accounting Technicians). This governing body of the accounting world is the overseer of the accounting qualifications. Receiving an AAT qualification is the beginning of the journey to becoming an accountant.
An accounting career starts with learning the basics of bookkeeping and reporting. The two are not the same thing, but bookkeeping is important for accounting. Let’s explore, what is bookkeeping?
What Is Bookkeeping?
As stated above, accounting is an extension of bookkeeping in some fashion. Accountants are a more extensive position since they are responsible for taxes and payroll. But, bookkeepers are an important part of this function.
Bookkeepers record the company’s transactions and revenue throughout the year. They track the day-to-day revenue as well as expenses for the company. They maintain the accounts receivable and balance the books.
More advanced bookkeepers also maintain tax book information. They submit end-of-year reports and track train other staff members in bookkeeping practices.
Bookkeepers start their training by completing similar training to accountants. For example, they also complete the AAT Bookkeeping training. But, the training is not typically as extensive as the training an accountant completes.
They do have a skill set in high demand, though. From managing payroll to ensuring all accounts are paid on time, they keep businesses moving.
How Do They Impact Decision Making?
Accountants are certified managers of money. They typically receive special training that permits them to give financial advice.
Bookkeepers, however, are not trained to give financial advice. They only record and present the data of the business.
How Do They Record Financial Data?
On a similar note, the above factor impacts how they record the data. An accountant seeks out patterns and ways in which they can give advice to their managers. Or, overseers.
They seek out patterns and ways in which they can improve business efficiency. A bookkeeper does not advise their managers.
They are to be accurate in what they record. They are to be efficient and record data in a timely manner. But, they do present the data in a manner that highlights certain patterns or systematic occurrences.
What Are The Goals And Objectives?
The main goal of bookkeeping is the maintenance of the company’s books. This means their revenue and their expenses.
An accountant is supposed to keep track of the data. They should be aware of any anomalies and advise the company on the best course of action.
Do They Provide Feedback Regarding Reports?
An accountant is expected to provide feedback regarding the records and financial statements. They make reports and give their opinion on how the company is flourishing.
Meanwhile, bookkeepers do not provide any opinions or thoughts on their reports. Rather, they just record the data and report it.
What’s The Definition Of Each?
An accountant is someone who takes financial data and creates reports based on these accountants. They record the company’s funds and provide financial advice. The benefits of accounting are this somewhat privileged and important position in the company.
Bookkeepers are responsible for accurate records. These records might be used for taxes or other financial purposes. But, bookkeepers do not present this information. The benefits of bookkeeping are a steady job with a relatively low-stress position.
What Specific Skills Do They Each Need?
The most important skill both bookkeepers and accountants need is organisation. They need to have the skills necessary to ensure bills are paid on time and taxes are managed accurately.
Single Bookkeeping, Double Bookkeeping, and Accounting skills are necessary for both. Single and double bookkeeping refers to the capacity to record the books systematically. The distinction between the two is to connect the dots between costs and expenses.
CIC Accounting Vs. CIC Bookkeeping
For community interest companies are responsible for filing their CIC tax returns in a timely manner. These companies should employ their own bookkeepers and accountants responsible for their reports.
CIC accounting is complicated and difficult to master. Accuracy and efficiency are the most important factors of CIC reporting. But, there are systems available to bookkeepers and accountants alike to help you make this task a little easier.
And, utilizing such software can help you ensure an accurate filing at the end of the year. No one likes to be audited or have to re-do their taxes!
CIC Accounting Vs. CIC Bookkeeping And The Future
CIC accounting vs. CIC bookkeeping is a complicated manner. The choice between one or the other is fundamental in your community interest company. Fortunately, you do not need to depend on paper records or simple ledgers. K.G. Accountants provides extensive software to help you perform your work efficiently.
This software helps users file their work accurately. It also helps them balance the accounts and makes a virtual paper trail for your records.
Please contact us today to get started! We are always happy to help!
Tel: 0207 953 8913
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