Bookkeeping vs. Accounting

Did you know we do both!

–Bookkeeping vs. Accounting–

If you’re a small business owner, you might be wondering if you need to get a bookkeeper or an accountant – or both.

And now that you understand the need for bookkeeping, you’re might be wondering, “How does it differ from accounting?”

Good question.

The words “bookkeeper” and “accountant” are often used interchangeably. However, there are some key differences that determine the main responsibilities of each role.

–Bookkeeping is a Subset of Accounting–

37883981_2140118849644035_5128132333710344192_n.jpgAn accountant, professional bookkeeper, or an employee of the business can do your bookkeeping.

If you’ve just started a business, chances are you’ll be doing the bookkeeping yourself.

This is no bad thing. When launching a new business venture, it’s crucial that you have an intimate grasp of your financial situation. What better way than to do the bookkeeping yourself?

Essentially, bookkeepers take care of the day-to-day financial work.

They keep detailed and accurate financial accounts and use this financial clarity to help make informed business decisions.

–Accountants are Financial Experts–

Accountants are usually qualified, registered members of a statutory association. So they often have titles like CPA (Certified Public Accountant) or CA (Chartered Accountants).

That’s how they can charge the big bucks.

These experts will use the accounts provided by the bookkeeper. They focus on analyzing the transactions to provide financial advice.

They’ll also use the information in the accounts to file tax returns and other reports.

Whereas bookkeepers handle the day-to-day financial tasks, accountants often step in on a quarterly basis to provide advice and make adjustments.

3 Comments on “Bookkeeping vs. Accounting

  1. It’s interesting to learn that bookkeeping is the first step that most accountants do for small businesses. My spouse is trying to build a new business this year and she needs help with finances. I think it’s a smart idea to find a professional that has a lot of experience with small businesses so that things are done properly.

    • Absolutely! If you can get your systems set up good in the beginning when your business scales it will just scale with your business.
      But if you don’t pay attention to bookkeeping from the beginning its super easy to lose control of it. 🙂

  2. All the information that you sharedwith us about Bookkeeping vs. Accounting is very usefull and important. Thanks for sharing this

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