They say that when the bookkeeping ends, accounting begins, and here is our saying between the difference of the two!
Bookkeeping and accounting play a vital role in every business, but most people see these as one profession, which is not right. They have similarities, such as dealing with financial data and the need for basic accounting knowledge. However, these procedures are fundamentally different and provide distinct advantages from each other.
What is Bookkeeping?
Bookkeeping is primarily concerned with recording the daily transactions of the business, reconciling bank accounts, creating monthly financial statements, payroll processing, preparation of books of accounts, and the preparation of the documents for year-end financials and tax records of the business. Bookkeepers must be precise about accuracy and knowledgeable on the important financial concepts to perform their jobs successfully.
What is Accounting?
Accounting starts by adjusting the data gathered from bookkeeping, filing of taxes, and assessing the financial performance of the business by reviewing, analyzing, and performing an audit of its financial statements, which will then be used to help in the decision-making process of the management. Accountants are usually those who graduate with a Bachelor of Science in Accountancy and are eligible to take various certifications, such as the Certified Public Accountant Licensure Examination.
Who do you need: Bookkeeper or Accountant?
Choosing between a bookkeeper and an accountant depends on your business needs. If you need someone to manage daily financial transactions, maintain records, and prepare reports, a bookkeeper is a cost-effective solution. However, if you’re looking for expert financial analysis, tax planning, and strategic insights, an accountant is the right choice. In many cases, businesses benefit from both professionals working together to ensure financial stability and growth.
Find the Right Solution for Your Business
- Automate Your Accounting & Tax Filings: If you’re a professional or business owner looking for an easy way to handle accounting and tax filings, check out Juan for a seamless, automated solution.
- Outsource Your Accounting Needs: Looking for expert assistance with bookkeeping, accounting, or tax preparation? Explore our Partner Directory to find top providers that best fit your business.
No matter your financial needs, having the right support can simplify your operations and set your business up for long-term success.
