An accountant provides strategic financial advice while also monitoring your company’s financial situation. They help you make sound business decisions based on accurate financial records, and they can guide you through any tax issues or IRS audits.
Accounting requires more analytical thinking than bookkeeping, as it relies on logic and problem-solving skills. This type of financial support can be helpful for companies that need to analyze large amounts of data or have many financial questions.
Bookkeeping, on the other hand, focuses on recording and organizing daily transactions, such as invoices, checks received or written, accounts payable and receivable, and payroll. It can be done manually or automated by software like QuickBooks Online and Xero.
You don’t need a college degree or formal education to become a bookkeeper, but you may need some experience or training to gain employment. You should also have an eye for accuracy and a strong desire to learn.
Some small businesses have their own bookkeepers, but most choose to outsource these tasks to a bookkeeping and accounting service provider. This gives you more time to focus on your business and less on balancing the books.
A bookkeeping and accounting service provider will keep track of your income sources, profits and losses, and accounts receivable and payable to ensure your business stays compliant with regulations. This helps you avoid costly audits from the government or IRS.
It can be difficult for small-business owners to balance their budget and pay their bills without the help of an accountant. Hiring an accountant can be a good idea, but it involves a lot of expense, including accounting software that you have to buy and pay for again each year. By outsourcing this job to a bookkeeping and accounting service provider, you can get the help you need at a fraction of the cost.