Here at Omnibiz Services, we offer a wide range of bookkeeping services. But just what are bookkeeping services? And what is the difference between bookkeeping and accounting? Let’s take a look at the nuances between the two professions so that you can ensure that you hire the right person for the right job!
In general, bookkeepers are intimately involved with the day-to-day operations of a business. They usually will perform the following tasks for their clients:
- Recording transactions
- Reconciling bank statements
- Invoicing clients
- Paying bills
- Processing payroll
- Advising clients on record-keeping requirements and methods
- Cash flow forecasting and management
- General record keeping
Bookkeepers can provide day-to-day support and streamline processes for their clients. When necessary, they can make referrals to a CPA for tax issues or a higher level of expertise.
Accountants generally take more of an advisory role in business operations. One of their tasks is to prepare financial statements and reports that are required by banks and governmental agencies. Accountants also provide monthly or quarterly advice on the health of the business, and offer suggestions regarding strategies to grow and sustain businesses. Additionally, accountants will verify the accuracy and completeness of the accounting records, provide income tax planning, and offer advice on tax law, entity structure, and key financial decisions.
Working Hand in Hand
Accountants and bookkeepers can work together to provide comprehensive service for their clients. For example, accounting and tax prep depends on the bookkeeper’s meticulous record keeping. Bookkeepers also prepare the documents needed for accountants to provide monthly or quarterly advice on the health of the business. Finally, accountants can advise bookkeepers and periodically review their work.
How Do We Know?
In next week’s blog, we will work through several different scenarios to determine if a bookkeeper needs to be hired, or an accountant needs to be brought on board. Stay tuned!