The vast amount of people don’t understand the difference between a bookkeeper and an accountant. However there are very important distinctions between the two and how they affect your personal and/or business decisions.

Bookkeepers handle the daily financial records of a small business. They keep the books and monitor every transaction going in and coming out of accounts. Small business accountants tend to have more advisory positions, performing audits, managing reports and offering guidance to business owners.

Duties between bookkeepers and accountants can overlap. However from an educational standpoint, accountants must hold degrees and certifications. At the same time, the law doesn’t dictate that bookkeepers require a degree or certificate.

As for your day to day business a small business bookkeeper is invaluable. They can do the math, sort receipts and will save you time and money by understanding the structure and complexity of your business. In contrast, a small business accountant’s time is spent inputting, checking and balancing numbers, maximizing your business or personal investments, making informed decisions and recommending how to control your cash flow. Your accountant will truly make a monumental difference in these situations.

The amount you pay your accountant or bookkeeper is largely dependent on your location, what you need done, and how experienced the practitioner is. You may be charged by the hour or by the services provided.

With the advent of superior technology, accountants and bookkeepers have more ability to focus on the inner workings of your business rather than simply focusing on the numbers. For bookkeepers, this means less time is spent categorizing which expenses go where and an increased allotted time can be spent double checking entries.

For accountants, new technology allows them to spend decreased time re-checking bookkeepers’ work and increased time helping you solve the problems your business is experiencing.

Today an accountant is usually hired at your year end to audit your business, check your books and prepare your tax forms. As well, once the tax form is completed the accountant can help you plan for a lower tax bill in the coming year. They add value to your business not just through their book-balancing skills but by understanding the business challenges you face.

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Book your complimentary consultation today!

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