When it comes to accounting and bookkeeping, there are many differences. While these careers have many similarities and common goals, they are there to support your business in very different ways and for different parts of its business operations. Simply put, bookkeeping is more transactional and administrative while accounting is there to give you proper business insights based on bookkeeping information. We understand that you might not know the differences between these careers; we hope the following blog will give you all the information you need.
Accounting
As previously stated, accountants take care of the big picture by providing you with business insights based on bookkeeping information. An accountant will process all the financial information that was brought to you by the bookkeeper or business owner. From there, he or she will create a financial model using that information. Accountants’ analysis should inform you on business trends and growth opportunities.
Accounting Duties:
- Analyzing costs of operations
- Aiding in the understanding of the impact of financial decisions
- Completing income tax returns
- Preparing and adjusting data entries
- Preparing company financial statements
Bookkeeping
Bookkeepers, on the other hand, will play more of an administrative role in the business. They are more focused on recording financial transactions. This will help build a business to be financially successful. The bookkeeper is on the ground floor, managing your daily transactions and looking out for changes to the organization or significant financial events that should be addressed immediately.
Bookkeeper Duties:
- Completing payroll
- Maintaining and balancing subsidiaries, general ledgers, and historical accounts
- Posting debits and credits
- Producing invoices
- Recording financial transactions
Businesses will succeed more often than not when they have a complete picture of their finances, and bookkeepers and accountants each look at a business’ numbers through different lenses. In order to receive the best advice for your business, it is essential to have both an accountant and bookkeeper by your side. If you are looking for someone you can trust with your bookkeeping or accounting services, you can count on MARIELA RUIZ, CPA, PLLC. No matter what you are looking for, we have got you covered.
