Accounting and Bookkeeping may have two different functions, but they do go hand in hand. One must have a detailed and complete record of data in order to successfully analyze and generate reports. A lot of business owners think they can pick one over the other as they seem to have similar responsibilities, but that isn’t always true.
Read on to see a simplified explanation of the difference between the two, so when you come across accounting and bookkeeping services again, you’ll be able to tell them apart and distinguish one over the other.
The Difference
A bookkeeper’s responsibility is keeping a complete track of all the company’s financial data and information, including receipts and documentation that will be filed and recorded in a ledger. While an accountant’s job is to verify and analyze the data provided by the bookkeeper to make financial reports, audits and give information on business trends and growth opportunities for the company.
Bookkeeper or An Accountant: Which Do You Need?
In order to know which services a certain company should hire, it’s important to consider their needs, the industry they belong in, and the level of expertise they require to fulfill the role. The decision-making process will become easier once entrepreneurs have a clearer perspective of what they need.
If you have a small business and only need someone to track daily records accurately, then consider hiring a bookkeeper and then hire an accountant occasionally, to consult and analyze your business records and insights. But if your business is in full bloom and you find yourself needing your accountant more often, then you may want to hire them for a full-time position.
If changes occur with the workload of the company, then simply modify the services to fit your business needs better.
The Bottom Line Whether you’re an entrepreneur who prefers to do their own accounting service for your small business or prefer a team of professionals to take on the job, make sure that you hire someone with the right skills and qualifications. Handling the accounting service for small businesses or big corporations is no easy feat so it’s better to leave them to professionals who can provide and share insights based on their experience.