Bookkeeping vs. Accounting

Bookkeeping and accounting are two very important roles when it comes to managing your finances. They provide benefits to your business equally, but are two separate entities. Whether you’re in the early stages of your business or a few years in, having accounting, tax and bookkeeping services will save you time and hassle at the end of year. The needs of your business will be the deciding factors for what type of service you receive, as well as how often you use that service.

Bookkeeping

A bookkeeper is responsible for collecting data throughout the year. They keep a “paper trail” of all the important information dealing with your financial transactions. They are ones that get all of your documents prepared for tax season. Bookkeepers can be certified under the National Association of Certified Public Bookkeepers, which offers them the knowledge and training to manage day-to-day information and get it ready for the accountant to put it all together. Bookkeepers handle payroll, stay up-to-date with latest software like Quickbooks, and manage incoming and outgoing debts. They manage debts that need to be paid to financial institutions and even manage accounts payable. They prepare all documents necessary for tax season, while keeping your business compliant with state and federal laws. A thorough bookkeeper will balance sheets and all financial statements with accuracy. The ultimate goal of a bookkeeper is to keep complete track of your outgoing and incoming finances and prepare that total for your accountant. 

Accounting

Slightly different than a bookkeeper, an accountant is the keeper and interpreter of all your financial records. Accountants need a Bachelor’s degree in accounting, and have a license in order to perform accuracy. There are also three types of accountants: government, management, and public; it’s important to know which of them will appropriately service your business. You will find that the daily tasks of an account depend on the type of accounting service. Overall, some common responsibilities may include preparing and maintaining vital financial reports, as well as tax returns. When it comes to tax returns being paid on time, your accountant can help offer advice and guidance in this area. They are also licensed to guide you through revenue enhancement and keep your business costs low. Accountants insure financial accuracy while maintaining laws and regulations. They can also forecast analysis assessments that will help you and your business in the future.

When You Need Both 

The truth is, you cannot be the face of your business and perform all the “back of the house” duties. The fear of missing important financial details alone should prompt you to hire tax and bookkeeping services for your business. Both entities play a strong role in your business. They both are skilled to provide exceptional attention to detail while maintaining analytical, mathematical, and communication skills when it comes to all financial aspects of your business. A bookkeeper is someone you want all year round. You will most likely find them tending to your business two to four times a year, possibly more if needed. Whether you need both an accountant or a bookkeeper is all dependent on your business needs.

When it comes to finances, having an expert keep track of every detail and transaction will help you have time and energy for what really matters in your business. At Aqtoro, we provide all the tools you need for financial success. Whether you need support with bill pay or invoices, our team of experts will provide you with thorough and accurate tax and bookkeeping services all year long. Schedule an appointment with one of our members today!