When you sign up for a Countingup business current account, you get free built-in accounting software that allows you and your accountant to keep track of your books with ease. Having accurate records and an up-to-date awareness of how your business flows on a short-term basis is a key component for deciding where to go next, and that’s where a bookkeeper comes in. While a bookkeeper will remain an important partner for strengthening that foundation of a company, when it comes to creating pathways for the future, you should look to an accountant.
Ledgers vary in complexity depending on the business’ size and how you choose to prepare it. Forensic accounting combines auditing, accounting, and investigative skills to evaluate a businesses finances and determine any instances of fraud. The difference between bookkeeping and accounting isn’t financial ratios always black and white. Imagine the bookkeeper as the data collector, meticulously recording every financial transaction. The accountant takes that raw data and transforms it into a meaningful story.
Explore what you can do with QuickBooks
You’d pay more for the same service a bookkeeper could do for less and, in the process, underutilize the accountant’s expertise. A key part of the accounting process is analyzing financial reports to help you make business decisions. The result is a better understanding of actual profitability and an awareness of cash flow in your business. Accounting turns the information from the general ledger into insights that reveal the bigger picture of the business, and the path the company is progressing on.
Learn more
It’s important to note that some EAs only provide tax services and don’t handle other bookkeeping and accounting work. Bookkeepers sometimes do accounting tasks, such as generating financial reports from the accounting software, making journal entries for depreciation and accrued expenses, and more. Other bookkeepers get certified in the bookkeeping software they use with clients.
It gives you concrete data on whether you’re making a profit, where you can save money, and whether you have enough cash flow to keep the business running smoothly. Accounting focuses on using that data to assess the financial health of a business and make data-driven business decisions. Bookkeeping focuses on managing financial books by documenting transactions, managing accounts, and recording financial data. Bench offers full bookkeeping services by live bookkeepers, along with our always-available software platform (so you can log in any time to see where your accounts stand). There’s also a blurring of roles, with some accountants providing bookkeeping services and some bookkeepers giving strategic business advice. Plus, today, most bookkeeping software can create financial statements—a task usually reserved for accountants.
While it can be reassuring to see letters after an individual’s name, we recommend focusing instead on finding an accountant who offers the services you need, you feel comfortable with, and trust. Even if an accountant has a degree and a certification, it doesn’t mean they are a better choice than a bookkeeper with sufficient experience. When deciding whether you should hire an accountant vs a bookkeeper, the answer will depend on what kind of help your business needs. These steps require a more in-depth understanding of finances, so an accountant will typically perform them. The magic happens when our intuitive software and real, human support come together.
Required Education
Growth for accountants and auditors is expected to continue for the next several years. The Bureau of Labor Statistics (BLS) expects 4% job growth in this field from 2022 to 2032. You must have a minimum of 150 postsecondary education hours, or what amounts to a bachelor’s degree in accounting, and an additional 30 hours of graduate work. Relying solely on manual processes can be faulty, so implementing tools like Expensify to help categorize expenses, maintain meticulous records, and prevent discrepancies can also be beneficial. There is also ample opportunity for on-the-job training, apprenticeships, and post-secondary coursework that can help someone become a skilled bookkeeper. Businesses of all sizes need to keep careful track of income, expenses, and transactions, which includes everything from daily sales and invoices to receipts and payroll.
- Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support.
- And because they’re tax compliant, you can feel confident they’ll keep you on the straight and narrow.
- These required credentials are a determining factor in the cost of an accountant.
- Some of the most in-demand accounting jobs are accounting manager, accounts payable specialist, accounts receivable specialist, corporate controller, senior accountant, and staff accountant.
- The accounting process is more subjective than bookkeeping, which is largely transactional.
Additionally, integrating a tool like Expensify can automate expense reporting and tracking — reducing the workload for everyone involved. If managing your business’s finances is eating up a hefty portion of your time and headspace, it might be time to hire a bookkeeper. They can handle day-to-day financial tasks, allowing you to sit back and focus on core business activities. Below, we’ll walk you through three signs it might be time to hire a bookkeeper or an accountant to help you manage your books and plan for the future.
Hiring a bookkeeper helps you ensure accurate and up-to-date record-keeping, which forms the foundation of your financial system and sets accountants up for success. Bookkeeping focuses primarily on the day-to-day transactional activities of a business. Their main objective is to ensure accurate recording of all financial transactions, which forms the foundation for effective accounting. As a small business owner or sole trader, you may look to accountants for help with the process of creating your company. You may also need an accountant to help you with financial forecasts, tax compliance, planning and filing, and strategic planning. If you’re looking to get a handle on the day-to-day finances of your business, look for an experienced bookkeeper.