There’s often the perception that bookkeeping and accounting are the same. The concept is similar, but there are some important distinctions you need to know as you grow your business. In fact, you may find that you need one more than the other.
Bookkeeping is not accounting
A bookkeeper keeps your financial records. An accountant analyzes those records and provides counsel based on the information provided. Consider an accountant as your personal financial advisor who provides insight into tax requirements and the best options for investments and business growth. A bookkeeper ensures your records are up to date and in good standing.
Bookkeepers are all about the paperwork. Payments, invoices, payroll, reconciliation reports and accounts are just some of the responsibilities of a bookkeeper. If this is a priority for your business, be sure to search specifically for an accounting agency that provides this expertise.
Accountants are about the big picture. When it comes to designing a five-year outlook or overall financial projects, accountants are best for these tasks. Accountants also handle audits, tax planning, business planning and corporate reporting.
Choosing the best option depends on your business needs. Many accounting agencies, including Rektio Accounting, provide bookkeeping services to the client. If you have a handle on your financial records and payment systems, you may decide you only need the advisory role of an accountant. Utilizing one or both options is a great way to keep your business on track for continued growth and success.
Interested in bookkeeping services from Rektio? Let’s talk.