Bookkeeper Vs. Accountant: What is the difference?

We often get asked what is the difference between a Bookkeeper & Accountant?

As a small business owner, you need your financial data to be current & accurate so you can make good business decisions. Also, to ensure you have a healthy cash flow.

As your business grows, keeping track of how much money you have coming in & going out of your business can get very complex.

When the accounting tasks for your small business are to much for you to handle, it’s time to get help.

But do you need an Accountant or a Bookkeeper?

There are some similarities between the two, but there are also distinct differences.

Bookkeeping Vs. Accounting

 A bookkeeper handles the day-to-day tasks of recording financial transactions, including purchases, receipts, sales and payments. Many small businesses use software such as QuickBooks or Xero to keep track of their revenue & expenses.

The role of the accountant is to verify the data, analyze it and use it generate financial statements, performs audits and review engagements.  An accountant’s analysis can provide information for financial forecasting and trends.

When hiring a bookkeeper or an accountant it’s important that the individuals are qualified by asking for references, checking certification or even running screening test.

Hiring an unqualified bookkeeper or accountant can be detrimental to any business.

Our team at Censea Bookkeeping consists of Certified Bookkeepers & designated accountants, giving you the piece of mind that your books are well taken care of.

Let’s meet today for your free 1-hour consultation.

 

 

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