If you are a business owner, you know that one of the key components to running your business successfully is having your finances in order. Your business’s financial data must be up to date and accurate so that you can ensure a healthy cash flow and make sound business decisions that will keep your business thriving and out of the red. Tracking your finances becomes more complex as your business grows and when the time comes to hire help to manage your financial tasks, it is important to know whether you need an accountant or a bookkeeper. Here are a few of the distinct differences of each to help you decide which is best for your business from the experts at CPA Accounting & Tax Services.
Why Choose an Accountant?
An accountant looks at the big picture and provides business owners with important business insights and provides financial advice based on the information and financial data that a bookkeeper records. Accounting includes in-depth reporting and analysis that gives business owners a complete picture of where their finances stand, what they can do to ensure continued growth or rectify any issues. Typical accounting tasks include:
- Preparing financial reporting records like tax returns, balance sheets and audit statements
- Verifying and analyzing data
- Generating reports
- Identifying business trends and opportunities for growth
- Providing information for forecasts
Why Choose a Bookkeeper?
A bookkeeper’s job is to maintain complete records of all the money that comes in and goes out of the business. Bookkeepers record daily transactions in a consistent, easy-to-read way, and their records enable accountants to do their jobs. It is a transactional and administrative role that handles the day-to-day task of recording financial transactions, including purchases, receipts, sales, and payments. Maintaining a general ledger, which tracks credits debits and entries is one of the main duties of a bookkeeper. This can come in the form of a sheet of paper to specialized software like QuickBooks. Typical bookkeeping tasks include:
- Recording financial transactions
- Invoicing
- Managing payroll
- Posting debits and credits
- Maintaining and balancing accounts and ledgers
Let us guide you on whether an accountant or bookkeeper is right for your business. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, International Tax Services, Tax Planning and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today: www.cpaaccounting.biz