Bookkeepers and accountants both support and manage businesses at different stages of the financial cycle. Therefore, it gets hard to distinguish between each process. Do you want to learn about the difference between bookkeeping and accounting? Guess what! To help you get a better understanding, we have compiled an in-depth analysis that will explain the functional differences between accounting and bookkeeping. Without any further ado, scroll down to read more.
The Key Differences between Accounting and Bookkeeping
- It helps you record and categorize your business’s daily payments and expenses.
- It helps you send customer invoices.
- It also helps you to record all the payments received throughout the month and year.
- It even helps you conduct bank reconciliation every month.
- It helps to prepare books for the accountant.
- It helps you perform accurate audits.
- It provides you with tax advice.
- It even helps you file tax returns and conducts tax planning.
- It helps you analyze the cost of operations.
- It even helps in advising business owners during their financial decision-making.
The Functions of Bookkeeping and Accounting
Bookkeeping is comprised of:
- Posting debits and credits.
- Producing invoices.
Accounting is comprised of:
- Analyzing the costs of operations.
- Completing income tax returns.
Related: “How to Find a Reliable Accountant”
Which Is Better?
Both bookkeepers and accountants are required for organizing financial records and balancing finances, along with accurate tax filing. Plus, both accounting and bookkeeping play a vital role in contributing to the long-term success of every business. Therefore, hiring both are better. However, if you opt to hire a professional, the charges for accounting and bookkeeping may vary accordingly. Lastly, it all depends on your choice, as whichever option you choose, your main concern should be to help your business grow and expand at the same time.
If you’re looking for professional accounting and bookkeeping services, you can rely on MARIELA RUIZ, CPA, PLLC. We offer professional accounting and bookkeeping services and support from a team of knowledgeable experts in Mission, TX. Check our website to learn more about our services, or simply give us a call at (956) 997-0067 for further assistance.