[camz]

I wouldn't try to separate bookkeeping from accounting too much. As a cpa, the lines are blurred too often because we're usually making decisions and adjustments along the way.

But, a little information can definitely be dangerous. It can be a huge time sink to "restate" the books to suit someone's vision and at worst it allows people to misrepresent the information.

[jasode]

>I wouldn't try to separate bookkeeping from accounting too much.

I think of them as distinct and separate concepts:

bookkeeping: the recordkeeping of transactions. The "data entry". You can have lower wage data entry clerks tearing open envelopes to type in data from vendors' invoices and recording deposits of checks from customers. At this layer, the data needs to be recorded correctly.

accounting: literally the management of "accounts". This is a position of education (CPAs). Their value-added thinking happens above the layer of bookkeeping. They use professional judgement to set up a "chart of accounts" ... what kind of buckets to keep track of various money, how many buckets, etc. They are in charge of "closing the books" each month and preparing financial reports.

Yes, sometimes the activities blend into each other. Some bookkeepers do higher level "accounting" activities and some Certified Public Accountants also do grunt work of "bookkeeping" but they're still separate cognitive activities.

Lastly, there's finance. The finance layer sits above accounting and bookkeeping. Finance management (CFO, treasurer, etc) focuses on strategy of money. Should the company lease or buy the building, the tax implications of foreign earnings, stock buybacks, etc. The accountants & bookkeepers can report exactly how much money is sitting in the bank but they are not the ones who decide what the best strategy is for it.

It's the small businesses where "bookkeeping" and "accounting" are synonymous (e.g. using Intuit QuickBooks). In those mom & pop shops, the "finance" strategy is handled by the owner(s) of the company.

[sundarurfriend]

From your description, it sounds like bookkeeper:accountant as DB-user:DB-admin - the accountant/admin defines the schema, and the bookkeeper/user only gets to work at the data level, with no metadata level decisions. Is this analogy sound?

[jasode]

That can be a loose analogy if one is using the perspective of job titles.

I was emphasizing the different "cognitive activity" of each instead of job titles. As for workers' positions/roles, that's more fluid.

For example, in the small company[1], the "bookkeeper" is also doing the "accounting tasks".

In this other larger company[2], the "bookkeeper" is more of a data-entry person and reports to the CPA.

[1] http://jobview.monster.com/Bookkeeper-Job-Palm-Bay-FL-US-151...

[2] http://jobview.monster.com/Bookkeeper-Logistics-Firm-Job-New...

[tmornini_ey]

I believe this is a good analysis if you see the DB administrator in the role of scheme and report design, interpreting reports, and using those reports to plan for the future, and the DB user as inserting new rows (never updating!) and doing simple queries on the data.

[marincounty]

I've wondered the difference between a good bookkeeper and a CPA. After looking at your comment, I finally looked up the requirements to become a CPA. I won't list them; they are easily found online.

I have wondered the difference, because I had two friends who had vastly different incomes, but were doing essentially the same work.

My first friend(former girlfriend in college) became a CPA, and was working for a small VC.(when I knew her I don't think they were calling themselfs venture capitalists? They were just small cap investment firms--basically a rich guy who invested in small business.) Well, since she was a CPA she had no problems in obtains jobs, and salary was not an issue. I guess she was a good accountant?

My other friend who dropped out of school, and didn't get his bachelor's degree went into bookkeeping. He took a tremendous amount of business and accounting courses at various community colleges. He wanted to get his CPA, but didn't have the auditing experience(not required anymore in CA), and didn't have a bachelors degree. He did some amazing things for just a bookkeeper. He was highly instrumental in making the owner of a small local bike manufacturer a multimillionaire. He was always working, but never got close to the salry of the CPA. I recall him saying he coukd pass all four sections of the CPA exam, but couldn't get his license because he lacked the education/auditing requirement.

I have thought about the two over the years; and without a doubt If I needed an accountant, I would hire my friend without the CPA license. Why, because I know what he did professionally. I still think about that deal he put together. I know we need a CPA licensing system, but don't discount the bookkeeper with the spectacular work history?

My point is get that CPA if you can afford it? I'm pretty sure the bachelor's degree can be in any major. You need certain amount of accounting courses, and a one year of experience working under any CPA, at any company.

(What I find troubling in CA is under Brown--it appears Lobbiests got their mits on Gov. brown and made it harder to gain entrance into certain professions. I'm not sure if easier, or harder to become a licensed CPA before Brown? I do know he caved into the Realeste brokers lobby. It is harder to become a real estate broker under Gov. brown. When Gov. Scheartzenegger was hit by the Reators lobby he said, 'I'm sorry. I don't want to make the broker's license more difficult to obtain. You haven't presented one instance where the old system failed?' He vetoed the bill.

That day, I went from a militant, strict Democratic to someone who didn't care which party you were affiliated with.)

[mauricemir]

Hard to become an estate agent what professional skills do you need to show some one round a house.

[jrs235]

The important part is knowing a subset of laws.