In the small business finance world, the terms accounting and bookkeeping are often used interchangeably. It’s important to know, however, that while many functionalities in their responsibilities can overlap, they aren’t quite the same. We hope this blog post will help you delineate the two and determine which one would be the best fit for you and your business.
A bookkeeper will record and track all of the transactions coming in and out of your business. Bookkeeping is more of an administrative role. This includes daily transactions but also can handle invoicing and payroll.
A bookkeeper doesn’t require any certain degree, just experience in the financial field. There are accreditations that a bookkeeper can obtain to signify their training or tenure in the industry but they aren’t necessary to practice.
There are a handful of benefits of using a bookkeeper. First and foremost is cost. All of the organization can be done that any business would need so long as they had someone who could analyze that data to dictate strategy moving forward. If nothing else, hiring a bookkeeper can ensure that your numbers are correct if and when you need them.
An accountant can record and track the transactions but can also use that data to make suggestions in regards to your financial strategy. Accountants can verify data, report on what they see and explain their detailed analysis to help business owners make decisions in the future. An accountant must have a degree in accounting, and then can add to their knowledge with other certifications. Due to this, an accountant can cost more.
A bookkeeper can collect, post and show you your numbers – which is incredibly valuable. However, an accountant can analyze them and suggest strategies given the data. It all depends on the size, structure and amount of business your company does.
If a bookkeeper sounds like what your company needs, drop us a line and let’s talk! Better Bookkeepers is always interested to see how we can help!