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Most people think that Accounting and Bookkeeping are one in the same but there are major distinctions. Bookkeepers oversee the recording of financial transactions while Accountants are responsible for interpreting, classifying, analyzing, reporting and summarizing financial data. Read on as we break-down the differences between these two roles and how they can work together for your business.  Bookkeepers tend to the first important step of the accounting process = Recording financial transactions in chronological order on a daily basis. Bookkeepers record your business’s daily transactions and generate data, in the same way, every time in a cyclical and transactional method.
Because accounting software automates many of the processes, some bookkeepers in small organizations also classify and summarize financial data in financial reports. These bookkeepers are often referred to as Full-Charge Bookkeepers. Accountants analyze financial transactions in financial statements and business reports following accounting principles, standards and requirements. Accountants verify and analyze and interpret financial data in a subjective manner in order to a make sense out of your data and report the financial condition and performance of your business to company leaders to help them make informed business decisions. Let's break it down even further. Bookkeepers usually: record purchases, receipts, and payments invoice customers balance the general ledger process payroll Accountants usually: generate financial statements and reports analyze the cost of operations file income tax returns advise business owners Whether you are just starting off or have been in business for some time, it's best to have both a bookkeeper and an accountant to help you manage and navigate unexpected issues that may arise. Learn more about our Bookkeeping Services on our services page. It's one less thing that you as a business owner have to worry about.
21 Comments
7/24/2019 09:14:37 am
I didn't realize that bookkeepers were responsible for recording the daily financial transactions of your company. My uncle is thinking about opening a store, but he isn't confident that he will be able to keep track of his business' financial records. I think it would be a good idea for him to hire a bookkeeper that can effectively record his finances. 9/6/2019 08:54:43 am
Thank you for explaining the difference between accounting and bookkeeping. It's good to know that bookkeepers usually record things like what you buy and what your payroll is because that's what I have the hardest time with. I'm a very disorganized person and I can't keep track of that kind of stuff to save a life. Having a bookkeeper will be really helpful. 10/17/2019 11:37:53 am
I like that you said that bookkeepers help record your daily transactions in chronological order and generate data. I have a friend that is thinking about opening up his own business. I'm going to let him know about considering hiring a bookkeeper for his business to help his business grow. 10/21/2019 04:47:48 am
Hi Ron, 10/30/2019 06:36:22 am
A friend of mine is trying to start a small business. It makes sense that he would want to get a good bookkeeper! That seems like a good way to ensure that he keeps track of all of his expenses. 10/30/2019 07:47:05 am
Hi Braden, 1/6/2020 09:45:15 am
You said that bookkeepers record payments and invoice customers. If I had a business, I'd imagine that this would be beneficial. I'll let my boss know this so he might be able to hire a bookkeeper.
Capri Bookkeeping Solutions
1/6/2020 11:28:36 am
Thanks for passing along our information to your boss. Please let us know if you have any questions or if you'd like to set up a meeting. You can reach us at (856) 229-0941. 1/17/2020 06:34:42 am
I didn't realize that it is best to have both an accountant and a bookeeper. If the business is small and just starting out, is it acceptable to just have an accountant? At this stage, I'm not sure that I would have enough work to keep both of them busy.
Capri Bookkeeping Solutions
1/20/2020 05:57:45 am
Hi Shaylee, 1/24/2020 12:10:12 pm
It's good to know that bookkeepers are the first important step because I didn't know where to start. I'm really bad at financial stuff so I was hoping I could hire some help. Maybe I can learn a thing or two from them. 1/25/2020 07:15:35 am
Thanks for your feedback and glad to know you found our post informative! If we can help in any way feel free to reach out to us at info@capribookkeeping.com 3/9/2020 10:58:34 pm
All the information that you shared with us is very helpful for us. Thank you for sharing this with us. 3/11/2020 10:56:10 am
It's nice to know that bookkeepers can process payroll because I'm really bad at that. Payroll is critical, so you can't really afford to mess it up. I'll be sure to hire a bookkeeper so that payroll goes smoothly from now on. 4/11/2020 08:22:14 am
It is important to know how much cash you have on hand, which allows you to take on new projects. You also want to know where you can cut costs (while maintaining quality work) so that you can maximize your profits with each project. 5/19/2020 11:27:55 pm
Its really nice article that tells clear difference between a accountant and bookkeeper. Keep sharing. 5/20/2020 01:59:56 pm
I loved how you mentioned that an accountant can analyze the cost of operations. My brother was telling me last night about how he wants to get some professional help with managing the finances at his company, and he was wondering what service he needs to hire. I'll make sure to pass this information along to him so that he can look into hiring an accountant to help him. Leave a Reply. |
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