Why Your Accountants Shouldn’t Be Your Bookkeeper? Know it All

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Oct 31, 2022

Why Your Accountants Shouldn’t Be Your Bookkeeper? Know it All

Accounting vs Bookkeeping

It might be tough to determine the best time to hire an accounting expert or bookkeeper – or even whether you need one at all. While you use an accountant as a consultant, there are numerous alternatives for handling financial tasks.

Accounting VS Bookkeeping

If your company is large enough, decide if you want to engage an independent consultant, a firm, or a full-time employee when looking for a certified bookkeeper. Request suggestions from friends, coworkers, or your local chamber of commerce, or look for bookkeepers on online social networks such as LinkedIn.

You can also search the American Institute of Certified Public Accountants for CPAs specializing in different finance topics.

Finding a qualified bookkeeper may need some background research because, unlike accountants, they are not required to obtain a professional certification. When selecting a bookkeeper, a good recommendation from a trusted colleague or years of expertise is vital.

Bookkeeping

  • Record and categorize daily payments and expenses
  • Send customer invoices, and record payments received
  • Conduct bank reconciliations every month
  • Generate monthly financial statements
  • Provide year-end financials and tax documents to the accountant

Accounting

  • Prepare to adjust entries
  • Analyze the cost of operations
  • Advise business owners during financial decision making
  • Review and analyze financial statements
  • File tax returns, conduct tax planning, and provide tax advisory

Still unsure whether you need to employ someone to assist you with your books? Here are two circumstances when you should hire a financial professional:

  • You’re spending too much time on accounting
  • Your business is experiencing growth.

Whether you hire an accountant, a bookkeeper, or both, ensure they’re qualified by asking for client references, checking for certifications, or performing screening tests.

You do your business, and we will do your accounting and bookkeeping.

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