They say that when the bookkeeping ends, accounting begins, and here is our saying between the difference of the two!
Bookkeeping and accounting plays 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 be 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 to 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?
It could really be less costly for you to hire a bookkeeper to account for your daily transactions. However, you may want to understand the performance of your business and have advice for better operation, this indicates your need for an accountant! If you’re a solopreneur or a freelancer and would want someone else to do your bookkeeping and tax filings for you, you may check out Beppo for more information.
If you’re looking for an outsourced accounting and or tax preparation for your business, visit our Partner Directory page to know more about the companies providing these services and see which one is the best fit for your company’s needs!
