In the world of finance, the terms “accountant” and “accounting expert” are often used. For many entrepreneurs, it can be confusing to determine which one they actually need. Both professionals play a crucial role in financial administration, but their responsibilities and qualifications differ. In this blog, we’ll discuss the key differences between an accountant and an accounting expert so you can make an informed choice for your business.
What Does an Accounting Expert Do?
An accounting expert is responsible for maintaining a company’s financial records. Their tasks typically include:
- Setting up and maintaining overall financial administration.
- Preparing annual financial statements.
- Filing tax returns (such as VAT and income tax).
- Assisting with transitioning from a sole proprietorship/partnership to a private company (PLC).
- Providing personalized (tax) advice.
Accounting experts are often more involved in day-to-day financial activities and typically cater to small to medium-sized businesses (SMEs) and self-employed professionals. The title “accounting expert” is not legally protected, meaning it is not tied to specific education or certification. Therefore, when choosing an accounting expert, it’s important to consider their experience, expertise, and professional approach.
What Does an Accountant Do?
An accountant has a more complex role and is responsible for reviewing and analyzing financial data. Their tasks include:
- Performing statutory audits of annual financial statements.
- Preparing accountant’s reports.
- Providing advice on tax-related matters.
Accountants hold a protected title and must meet specific educational requirements. There are two main types of accountants in the Netherlands: the AA (Accountant-Administration Consultant) and the RA (Registered Accountant). Both require formal education and practical experience. Accountants are regulated by the Dutch Association of Accountants (NBA), which ensures they comply with legal guidelines and ethical standards, such as independence and objectivity.
Additionally, accountants must undergo annual training to maintain their titles, ensuring they stay updated on changes in laws and regulations. This gives business owners confidence that an accountant is not only qualified but also up to date.
Key Differences
- Protected Title and Education:One of the most significant differences is that the title of “bookkeeper” is not protected, while accountants have a protected title and must meet strict education and registration requirements.
- Liability: Bookkeepers have limited responsibilities as clients are responsible for providing accurate and complete information. Therefore, a bookkeeper cannot be held liable for errors arising from incorrect data provided by the client. Accountants, on the other hand, can be legally held accountable for errors in their work.
- Type of Businesses: Bookkeepers mainly focus on SMEs and self-employed professionals, while accountants also serve larger companies and handle more complex financial matters.
- Rates: Bookkeepers are generally more affordable, whereas accountants charge higher hourly rates due to their education and responsibilities.
- Type of Contact: Entrepreneurs typically have more frequent contact with their bookkeeper for day-to-day administrative tasks, whereas interaction with an accountant is less frequent.
When Do You Need Which One?
Generally, an accounting expert is well-suited for SMEs that primarily need to maintain basic financial administration. Accounting experts assist with daily tasks like processing invoices and tax filings. For larger companies or more complex financial situations, such as preparing an accountant’s report, an accountant is often the better choice. Accounting experts provide an accessible and cost-effective solution for SMEs that don’t face these complex issues.
Both accounting experts and accountants are essential for healthy financial administration. The choice between the two depends on your specific situation and needs. Need help deciding? Contact us to learn how our accounting experts can assist with your financial administration!
