ICB director of communications, Ami Copeland, discusses the evolving relationship between bookkeepers and accountants and reveals some of the results of ICB's survey into what bookkeepers really think...
We’ve been thinking a lot about the relationship between a bookkeeper and an accountant here at ICB. Discussions on the subject have formed part of the strategic planning meetings we hold at this time of year, as we set direction and ensure we’re supporting future-proofed bookkeeping professionals.
It was timely then that Lara Manton MICB posted a LinkedIn message on 24 February that went moderately viral and hinted at a less positive side to the bookkeeper/accountant partnership.
'Bookkeepers: don’t ever let an accountant treat you badly,’ she warned. Whilst carefully making sure she didn’t disclose any identifying information, Lara was reacting to what she perceived as disrespectful treatment at the hands of a fellow accounting professional.
What’s particularly striking about the post isn’t so much Lara’s choice of words or the experience she alluded to, but the positive outpouring of support for bookkeepers that it provoked:
''Bookkeepers have a superpower. By getting close to the day-by-day transactions of the business, they have the opportunity to develop a feel for the business, a familiarity with the rhythms of the business, the business engine and the entrepreneur/owner.''
''Bookkeepers are sacred!''
''As an accountant, I think a good bookkeeper is worth their weight in gold!''
It’s strange that an accounting profession that has its roots in double-entry bookkeeping and is fuelled by the critical imperative to keep accurate records, took so long to recognise the role of the bookkeeper. Trailing behind its accountancy body counterparts established over a hundred years ago, the Institute of Certified Bookkeepers (ICB), at 25 years young, is a relative newcomer to the scene.
Whilst Chartered and Certified Accountants are renowned for having achieved degrees, or their equivalent, in everything from tax to assurance and business law, have bookkeepers traditionally been underestimated simply because they only take the qualifications that matter to businesses on a day-to-day basis?
ICB Certified Bookkeepers are qualified in local Generally Accepted Accounting Principles (GAAP) so that they can support and prepare the accounts of micro and small businesses who aren’t required to apply International Reporting Standards (IFRS). As this includes the majority of UK businesses (there are fewer than 8000 large companies in the UK) Certified Bookkeepers are a round peg for a round hole (or more accurately round pegs for millions of round holes).
Of the 5.3 million micro-businesses in the UK, most do their own books. They're often too small to pay an accountant's fees but, if a good bookkeeper can get the books in order, more will flourish and grow to need both bookkeeper and accountant.
And whilst training to become a Certified Bookkeeper is faster than the route to becoming a Certified or Chartered Accountant, it’s not easy. Certified Bookkeepers must pass a challenging series of eight exams with pass marks reaching 85%. When you consider that Certified Bookkeepers are held to the same ethical principles as accountants, that they are required to comply with rigid rules on anti-money laundering, and are monitored to ensure their skills are kept up to date, one can no longer argue that bookkeepers are just number crunchers.
So, are Certified Bookkeepers getting the recognition and respect they deserve from their esteemed colleagues, the accountants? In Lara Manton's LinkedIn post she adds that she knows a number of accountants with whom she enjoys working and would not hesitate to recommend.
We carried out a survey to find out exactly how closely bookkeepers work with accountants and what they think the future holds. We discovered that 98% of bookkeepers work alongside accountants, and they’re clear on the difference between the professions:
"Bookkeepers look at the detail, accountants tend to focus on the overall picture."
''For me, the difference is that I do the day-to-day work and help clients understand their numbers and how they show the business's performance. Their accountants are there for tax advice and end-of-year compliance, and can give advice to clients on how they can grow their businesses in a sustainable way.''
"While there are overlaps, ideally most businesses need both. As a bookkeeper I see businesses much more often than the accountants and so can help them understand their current finances in a very different way to accountants."
"Bookkeepers are more approachable for their clients and deal with transactional processing. Accountants concentrate on final figures and tax computations, making them a bit more high brow."
And my personal favourite:
"Bookkeeping is like cooking a nice meal and serving it. Accountants eat the meal."
So, whilst bookkeepers can offer an end-to-end service for their employer or clients, it seems they’re choosing to work with accountants and don’t see that relationship changing any time soon.
You can view the full results of our survey completed by 250 bookkeepers in our
article here.
ICB VP and head of technical policy, Jacquie Mount, has been staunchly advocating on behalf of bookkeepers in support of this relationship when she campaigned to HMRC to facilitate multi-agent logins for Making Tax Digital (MTD):
''At present, there can only be a single tax agent registered for self-assessment for a client. ICB is working with HMRC who have committed to trying to solve this but as it stands, all returns, including the year-end must be submitted by a single agent. This simply doesn't reflect the reality for most businesses.''
Accountants need not be worried that bookkeepers are out for their job any more than the profession as a whole needs to fear the rise of AI and robot workers. Initiatives like MTD mean that more and more businesses are seeking the support of digitally-enabled and trust-worthy professionals to help them make sense of their numbers, and their tech.
The prophecies of mass unemployment as robots take over our jobs have not become reality. The evidence suggests that highly skilled bookkeepers, accountants, and even robots, are all needed to bring stability and offer guidance to businesses struggling in a time of economic uncertainty. Bookkeepers, like robots, may be disrupting the playing field, but ultimately businesses across the UK are benefiting.
It seems, therefore, that as jobs change and the role of the bookkeeper continues to evolve, accounting professionals should be helped to acquire new skills, including learning how to collaborate with each other and also with clients, employers, and even robots. That is one more reason why ICB recognises the value of retraining and lifelong learning and why we are planning for a positive and collaborative future for the profession.
