Do you think Accounting and bookkeeping services are the same things?
Not at all, they are quite different. Both of these services are crucial for the growth hack of a company. Although, offers different purposes.
In business, there is nothing more crucial than making money. If you don’t have a strong grip on your transaction finance, you could unexpectedly face a cash flow issue.
In this blog, we’ll discuss bookkeeping vs accounting in detail.
Bookkeeping VS Accounting Comparison
Bookkeeping normally refers to keeping records for financial growing transactions.
The tasks included in the bookkeeping of services are to make a record of financial transactions, and every sale, expense, and payment are documented accurately.
On the other hand, accounting covers a wider range of operations, such as understanding, analyzing & reporting financial information.
This process assists businesses to make wise decisions according to their financial situation.
So in a nutshell, Bookkeeping covers multiple strategies for data entry. On the other hand, accounting covers taxes & reporting strategy.
The roles of bookkeeper vs accountant:
Bookkeepers and accountants sometimes do similar tasks but both have different skill sets.
Normally, a bookkeeper’s job is to record financial transactions and keep you financially organized all the time, while accountants provide services of consultation and business analysis,
They are more qualified to give suggestions on your tax matters. Bookkeepers can make your tasks easy and accounts can make your financial decision-making easy.
Bookkeeper credentials & roles:
- Bookkeepers aren’t required to have any specific credentials or licenses.
- Although, bookkeepers need to be good at accuracy, and understanding the financial topics.
- The bookkeeper is not independent. Usually, the bookkeeper’s work is analyzed by either an accountant or the small business owner.
- Many bookkeepers have an associate degree in accounting, finance, or a related field.
- Also, they may be Certified Bookkeeper (CB), and Certified Public Accountant (CPA).
- A lot of bookkeepers start with entry-level positions or internships to gain hands-on experience.
- They have proficiency in accounting software such as; QuickBooks, Xero, and Sage.
- Furthermore, they can use spreadsheet tools to compile your data decently.
- Bookkeeps ensure 100% accuracy by giving their full attention to the job.
- They can manage multiple tasks at the same time without any lag.
- Furthermore, their communications are up to mark because they have to consult with direct clients, accounting experts, and business owners.
- To increase work efficiency, they will be offered workshops, free seminars, and courses.
Accountant credentials & roles:
- To qualify for an accountant post, normally a person must have a bachelor’s degree in accounting.
- For those who don’t have a specific degree in accounting, finance degrees are often considered as perfect alternatives.
- Accountants are also eligible to get additional professional certifications such as; a Certified Public Accountant (CPA) title with enough experience & education.
- To become a CPA, an accountant needs to pass the Uniform Certified Public Accountant exam.
- He must have experience as a professional accountant. These required credentials are evaluating factors in the actual cost of an accountant.
- An Accountant is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data of a business.
- Accountants maintain error-free financial records including income, expenses, assets & liabilities.
- They can help you create a budget and provide you with an exclusive strategy to boost financial growth in the future.
- Accountants evaluate your financial data to know trends and opportunities.
- If you don’t want any legal trouble, an accountant will save you. Because he ensures compliance with laws and regulations.
Objectives for accountant and bookkeeping services:
Let’s find out the objectives of both services one by one;
Objectives of Bookkeeping services:
Accuracy of financial records
A bookkeeper makes sure that your all transactions are recorded accurately. If you want reliable and comprehensive analysis, the bookkeeper’s accuracy will help you.
Don’t comprise on bookkeeping accuracy if you don’t want any legal issue.
Timely record keeping
A bookkeeper records all the transactions on time. He must ensure no delays in documentation. With the help of bookkeeping, you can meet financial timelines.
Time is money, so record all the things in real-time without any delay.
Ensure Expense management
A bookkeeper tracks & categorizes all expenses to monitor financial spending effectively. With the help of systematically recording he can easily identify trends, areas of overspending & potential savings.
So, if you want your expenses under your control, a bookkeeping service is a go-to source.
Bank Reconciliation
A bookkeeper must regularly reconcile bank statements along with internal financial records. Your bookkeeper can identify discrepancies between recorded transactions & your bank statements.
Hire a bookkeeper if you want to detect errors or fraudulent activities in your banking.
Financial reporting
Your bookkeeper can generate exclusive financial reports like profit & loss statements & balance sheets. These insights can help the company’s financial health, performance & current trends.
So why are you waiting? Get your financial recording accurate with the help of your bookkeeper.
Objectives of Accounting services:
Compliance with laws and regulations
Accounts just don’t help you with your financial reporting, they make sure you’re compiled with laws and regulations. This can prevent you from any legal issues linked to your financing.
Let’s avoid any legal hustle with Goldmine’s accounting & bookkeeping services.
Budgeting & Forecasting
An accountant can help you with effective budgeting. It will assist you in allocating finances efficiently. Now you can easily get ready to fulfill your future needs.
It’s time to enhance your financial management with strategic planning of professional accounting.
Tax planning & Preparation
Proper tax planning can be possible with the services of an expert accountant. It can overcome the chances of audits and penalties. This can lead you towards cost savings.
So, if you want legal guidance on tax obligations, an accountant is the right choice for you!
Cash flow management
Monitoring & management of your cash inflow and outflows are essential for sufficient liquidity. An accountant can maintain organizational efficiency.
Let’s invest in Cash flow management services if you want growth opportunities without any disruptions.
Advisory services
An accountant can develop key performance indicators (KPIs) to evaluate your financial & operational performance. This service can set benchmarks, track finance progress, and make data-driven decisions.
Stay ahead by taking professional advice on all financial matters of your business.
Last words: Which service is best; Accounting or Bookkeeping?
If your small business primarily requires assistance with managing daily transactions & maintaining accurate records, bookkeeping services are more than enough.
However, if you want detailed financial analysis, strategic insights, and compliance financial assistance, accounting services would be more beneficial.
Often, businesses may find that a fusion of both services provides the most exclusive results for their financial health and growth.
Ultimately, you need to assess your business’s current requirements and future goals before outsourcing accounting and bookkeeping services.
Conclusion
Today, business owners want access to up to date information at any time of the day, regardless of where they are. With this in mind, modern-day bookkeepers and accountants create records and reports that are available online at the touch of a button
bookkeeping software, you can also access real-time data and you can customize the settings to suit your business. You can choose how you want to manage your books, and you’re not limited to a rigid, universal system.
