Business owners face considerable pressure and stress when building their companies. What if there was a way to delegate while still overseeing every aspect of your business? When you outsource some of your most significant, time-consuming responsibilities, like your financials, you can focus on other tasks. So, when it comes to outsourcing, what kind of help do you need: a bookkeeper, an accountant, or both? There are stark differences, and we’ve broken down the tasks and responsibilities for each below to help you make an informed decision. Keep reading to find out more about the differences between an accountant vs. a bookkeeper!
Bookkeeping
In a business, bookkeeping helps maintain financial health and drive growth. Regular bookkeeping ensures you are always aware of your business’s current financial status. Having a bookkeeper can benefit you in the long run, enabling you to make informed decisions, meet requirements and goals, and comply with state and federal regulations. This job requires organization and a basic understanding of financials. Other bookkeeping tasks typically involve:
- Recording sales and purchases
- Reconciling statements and accounts
- Paying suppliers
- Creating and organizing financial reports
- Documentation records
- Running payroll
- Tracking invoices
Accounting
An accountant uses the data recorded to make recommendations and offer valuable insights into the company’s current financial standing. Having an accountant means understanding how your business is performing, being aware of areas where you excel and areas that need improvement and having peace of mind that your overall financials are being monitored and taken care of. Accountants provide information and perform various tasks, including:
- Tax advice, recommendations, and liabilities
- Filing income tax returns
- Flag any inconsistencies
- Monitor and develop budgets
- Work with auditors
Do you need an accountant or a bookkeeper?
Many business owners handle their bookkeeping and accounting but often find it frustrating and time-consuming. Some may even put the task off for as long as possible, making it harder to stay on track. When you are focused on growing your business, it can be easy to put other tasks on the back burner, but it can eventually affect the health of your business, and maybe even cause significant problems when it comes time to file taxes. The roles of bookkeeping and accounting are crucial parts of managing a business’s finances, maintaining accurate records and statements, and ensuring compliance. If you find yourself struggling to do it all as a business owner, the good news is that you don’t have to anymore!
Warren Accounting Group can help with any accounting or bookkeeping needs you may have. Our team is dedicated to providing helpful and efficient solutions to each client, giving you the time and resources you need to focus on what you do best – running your business. Speak with one of our team members today to see how we can help guide you to a brighter financial future, 252-827-5259.