Are you considering employing an accountant or bookkeeper?
Here's everything you need to know about these two jobs before deciding which one is right for your company. The titles "bookkeeper" and "accountant" are frequently interchanged, and both sorts of professions have the same long-term goal in mind: to assist your company to succeed financially. However, bookkeepers are more concerned with day-to-day tasks such as transaction tracking, whereas accountants or accounting firm give more comprehensive financial and tax assistance. What are the Responsibilities of a Bookkeeper? A bookkeeper is responsible for tracking financial transactions such as receipts, purchases, sales, and payments on a daily basis. To keep records of their debits, credits and entries many small firms utilise software like QuickBooks or Xero. The following tasks may be assigned to bookkeepers: • Managing accounting on a day-to-day basis • Keeping meticulous records • Ensuring that firms follow all applicable legislation • Accounts payable management • Taking care of bank feeds. • Invoices are sent out and accounts receivable are managed. • Payroll processing. • Financial statement preparation. • Managing foreign exchange transactions. • Conducting a stocktake. • Keeping track of cash flow. • Preparing financial records for the accountant. What is the Role of an Accountant? Based on the financial data collected by the bookkeeper, an accountant analyses it and provides vital business insights and financial recommendations to the business owner. Here are a few examples of typical accounting tasks: • Creating reports, conducting audits, and preparing financial statements such as income statements, tax returns and balance sheets. • Data verification and analysis • Providing data for predictions, business trends, and growth prospects. • Making changes to entries. • Assisting the business owner in comprehending the consequences of financial decisions. Accountants are required to hold a bachelor's degree in accounting or finance. They could then go on to get further certificates, such as the CPA. A bookkeeper is a position that accountants can occupy. Do you need a Bookkeeper or Accountant? Bookkeepers and accountants work as a team and might be in-house workers, freelancers, or independent contractors. However, each can assist your small business in a different way in staying on top of its finances. For example, during tax season, bookkeepers frequently compile critical financial paperwork that accounting firm requires. In the long term, continuing to do so would be financially unwise, as many blunders could occur, costing you money and effort. There are various indicators that you may need expert bookkeeping and accounting assistance. • Having trouble reconciling accounting every month. • Issues in keeping financial records up to date. • Cash flow problems. • Perplexity with the Chart of Accounts.
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AuthorI am Bhargey Patel, an owner of accounting firm and have 10+ years of experience in managing accounting and bookkeeping clients from all over the world. I am here to share my knowledge and experiences. Archives
May 2022
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