As a business owner, you’ve probably already outsourced your bookkeeping tasks to a bookkeeper. But you may wonder if you need an accountant, too, and what tasks an accountant can help you out with. Below, we’ve covered the main differences between accounting and bookkeeping, so you can figure out how to proceed.
Bookkeeping
Bookkeeping involves keeping records of all the day-to-day transactions your business conducts. Your bookkeeper likely stores this information in a database, so you can access it on an ongoing basis. In addition to basic bookkeeping, your bookkeeper may also help with your payroll processes.
Accounting
Your accountant can also help you keep financials for your business by recording them. But they take things a step further by summarizing and analyzing this information, as well as consulting with you about your financials. For example, after your bookkeeper prepares your financial statements, your accountant can review this information. Your accountant can also interpret your financials, turn your financials into usable reports, and give you advice based on the finances of your business.
When your business is just starting out, you can probably successfully run your operations with just the help of a bookkeeper. But as your business grows and expands, the advice and insight of an accountant can prove to be invaluable.
If you’re looking for an accountant to support your business, we want to talk to you at the office of Brad R. Smith, CPA PC. Contact us today to set up a consultation.