Does my Small Business need a Bookkeeper or an Accountant?
Bookkeeping and accounting are closely related fields and are often confused or blended together. As a business owner, you almost certainly should have a professional in each of these fields supporting your work. A bookkeeper and an accountant who both understand your goals and who can work well together can be a huge asset to your business.
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Bookkeeping and accounting are closely related fields and are often confused or blended together. As a business owner, you almost certainly should have a professional in each of these fields supporting your work. A bookkeeper and an accountant who both understand your goals and who can work well together can be a huge asset to your business.
Bookkeeping is a vital part of the accounting process, as it captures the data that is used to generate financial reports including,
sales
purchases
payments
deposits, and
receipts
Accounting, on the other hand, is traditionally seen as the process of analyzing, interpreting, and communicating financial data and includes
financial forecasting
budgeting
preparing financial statements for tax and -government filing
audits
tax planning, and
providing advice on other financial matters
As the capacity of technology has developed, the scope of the bookkeeping role has been expanding and now frequently involves creating financial statements, supporting the budgeting process and providing other useful reports and insights into a business’ financials.
With bookkeepers taking on some of these traditional accounting functions, more accountants are enjoying the opportunity to specialize in their areas of passion and expertise. They are also able to spend more time in the process of analyzing, interpreting, and communicating financial data to support the organization's financial success.
As you can see, both a bookkeeper and an accountant can bring a unique perspective to your business. Finding the right combination can be a huge factor in your success.