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differences accountant bookkeeper - Complete Controller

Bookkeepers and accountants share common goals and support business in different financial life stages but are undoubtedly different from each other, especially when it comes to executing organizational roles and tasks.

Bookkeeping and accounting top the list of most important aspects of running a business, and regardless of the size and scale of the company, it requires close tracking of expenses and cash flow. Business owners need to ensure their finances and data are recorded, assessed, and processed correctly. They base their financial decisions on the company’s financial status. While this all may seem easy at first glance, but the reality is, it is time-consuming and more complicated than you realize. Hiring a bookkeeper or accountant to do specific business tasks such as bookkeeping and accounting is ideal in every sense. Specialized expertise allows you to focus more on core business operations. This focus means that the books’ successful management gets you one step closer to claiming the top spot in the industry. Check out America's Best Bookkeepers

There is often a misconception that accountants and bookkeepers have similar tasks and duties, which they need to ensure collectively. However, this is not the case. They both are undoubtedly different from each other and have different roles to play in the organization. It is true that both bookkeepers and accountants support your business in various areas of business and stages of the financial cycle and share common goals. Still, they are undoubtedly different from each other. Bookkeeping involves admin related tasks such as transactional and administrative when it comes to recording critical financial transactions. At the same time, accounting is more subjective and requires accounting decisions based on bookkeeping records and information. Both have individual characteristics and help a business achieve its long-term goals and ambitions. So, accountants and bookkeepers are, one way or another, different from each other!

What Is Bookkeeping? Check out America's Best Bookkeepers

Bookkeeping is a baseline where day-to-day transactions are recorded consistently (without a gap). It is a key that unlocks the doors to a financially successful business. Besides financial transactions, it includes producing and settling vendor invoices, posting debits and credits, completing payroll, calculating GST, designing and reviewing accounting systems, preparing initial financial statements, reconciling accounting and making reports, and more. 

What Is Accounting?

It wouldn’t be wrong to say that accountants base their accounting decisions on bookkeeping records. Accounting is instead a high-level process that uses sensitive financial data prepared and processed by a bookkeeper for making crucial business decisions. The big picture involves preparing company financial statements, completing and filing tax returns, analyzing costs of operations, financial management advice, auditing, business establishment assistance, corporate reporting and compliance, and more.  Check out America's Best Bookkeepers

Shifting Landscape

In today’s corporate workplace, most small to mid-sized businesses shift to bookkeeping and accounting software as they lack resources to hire in-house talent. Hiring professional accountants and bookkeepers are costly to companies. That’s the motivation that leads them to incorporate accounting software in their companies. Businesses used to have second thoughts of whether to use such software. Now owners are readily using them in their companies as they have produced fantastic results.

Hiring a Financial Professional

Ensuring the financial accuracy of day-to-day transactions and using the bookkeeping data to make future-proofing decisions require you to hire a financial professional’s expertise. The accounting software can help you out to a certain extent. Businesses that are growing will need to consider hiring accounting specialists.

Since accountants have to make decisions on bookkeeping records, hiring a professional agent seems fair.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
small business accountant - Complete Controller

Often small business owners have faced the question, “When should I hire an accountant?” at some point or another during their careers. It’s a tough question, and the idea of spending extra money on something you’ve been doing yourself in the past can seem daunting. If your small or new business has been faced with this question, it’s time to look at some factors. In this article, we are going to talk about situations that may call for an accountant, what they do, and what that means for your business in the future. Check out America's Best Bookkeepers

What Do Accountants Do?

Before we get into the nitty-gritty of whether your company needs an accountant, we should first start by clarifying what business accountants do. To begin with, not all accountants or bookkeepers are full-time. Often small businesses do one-time hires, quarterly hires, and so on. With that said, here are the five fundamental tasks business accountants perform:

  • Setting up systems

As we stated before, not all accountants are full time hires. Some small businesses choose to hire an accountant at the beginning to help them “set up shop.” There is accounting software like QuickBooks that allows the average business owner to complete daily tasks; however, proper set up is key.

  • Entering data (maintenance)

As businesses grow, so do their numbers. Entering data precisely and without error is key to a functional business. These tasks can be time-consuming and require additional help.

  • Reporting Results and Forecasting Check out America's Best Bookkeepers

This task is crucial to business owners, small and large. Accountants can look at real-time facts and numbers, create reports on profits, or loss of profits, which can otherwise be confusing to non-trained business owners. Most of the accounting software available for purchase offers forecasting options, but they are basic. A real-life accountant can produce more detailed forecasting.

Another aspect of this is by creating Financial Statements. Eventually, your business may need to apply for a loan or a credit card. Banks and other institutions are going to ask for 3 Purpose Statements (P&L, Balance Sheet, and Cash-Flow Statement). These need to be precise and detailed the first time.

  • Taxes

This is self-explanatory. The bigger your business grows, the more complicated your taxes get. Accountants not only do your taxes, but they also help get you the credits and deductions you otherwise would have missed.

 

Signs it may be time to hire an accountant

Your business is growing

Business is doing great, and you’re ready to expand. Perhaps that means hiring more employees, more vendors, buying property, or even expanding. These are all wonderful but can cause some serious complications if you’re not prepared for them. When it comes to rapid growth, paperwork can become longer and harder to deal with. This is where an accountant can help take the reins and straighten out all legal, business, and tax paperwork that your growing business may accumulate. As far as expansion, when it comes to buying/selling property, an accountant can help you through the process and create a plan that will work best for your company. They also can help you avoid fees or unnecessary taxes. Check out America's Best Bookkeepers

 

Applying for Loans

Like most businesses, you’ll have to apply for a loan or a business credit card. In some cases, you’ll be working with Investors. Investors, loan officers, and banks are going to want detailed and exact financial statements. Accountants can take the pressure off of producing such documents that become more complicated and detailed as your business grows.

 

You have a hard time with Taxes

It’s no secret that the U.S. tax code is detailed and confusing and is always changing. Accountants stay up to date on all occurring changes the U.S. Tax Code may be implementing and can assure that your company complies with all new codes and structures. This way, your company is safe from any unnecessary audits, fees, or penalties. They help you do your taxes right, but they can also assure you that your company gets the right tax credits and deductions to keep costs low. *Note* If you are facing an audit and are unsure what to do, we highly recommend bringing in an accountant no matter what the case may be.

 

Accounting and Bookkeeping Tasks are Keeping You Away from Other Priorities

Let’s say you’re good at accounting and have managed to keep yourself afloat without one for several quarters accurately, but your business could use a little “sprucing up.” Accounting and bookkeeping tasks are long and time-consuming. If you find that these tasks, as a business owner, are keeping you away from reaching your full potential, it may be time to bring somebody in so you can focus on more business development to help your company grow.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers