A bookkeeper and accountant are financial professionals who work together to track financial information for a business. These professionals provide support during various stages of the business cycle, helping you to make strategic decisions and set goals for income and revenue.
Bookkeepers are primarily responsible for recording all transactions that occur within a company, such as sales and purchases. They also keep track of accounts receivable and accounts payable.
Accounting is a high-level process that takes the data recorded by bookkeepers and turns it into insights to help your business run more effectively. This includes analyzing your business’s performance, forecasting, tax filing and more.
The difference between bookkeeping and accounting is that a bookkeeper focuses on the details of individual financial statements, while an accountant looks at the whole picture and works to create a fuller understanding of your company’s finances.
In addition, an accountant can perform internal audits to make sure your business’s books are in order. They can also help you prepare for an audit and offer financial advice and analysis to assist your business in making the best possible decisions.
For many small, medium and large businesses, engaging the services of a bookkeeper and accountant is necessary to ensure the financial health of the business. These financial service providers help entrepreneurs make the most cost-effective and time-efficient decisions as their companies grow.