difference between bookkeeping and accounting

DIFFERENCE BETWEEN BOOKKEEPING AND ACCOUNTING HOW TO

payroll - is the responsibility of paying employees, keeping a list of all employees, their details, their working hours, and managing their payments.

gathering the data from the bookkeepers and compiling a monthly report that will explain in detail your business's overall financial performance and guide you to make better decisions.

From there, they also help you make the best decisions for your company.

DIFFERENCE BETWEEN BOOKKEEPING AND ACCOUNTING HOW TO

An accountant is similar to a financial advisor as they use the financial recordings and transactions of your business, analyze them and come up with suggestions and advice on how to proceed.Īn accountant looks at all your spending and your profit, they look at the data the bookkeepers gather and analyze and determine your financial performance. Understandably, bookkeeping is a simple service but essential for any business owner, to monitor their finances.Īccounting on the other hand is more strategic.

Invoicing - sending an invoice to your client after they purchase your service.Bank reconciliations - a comparison of your expenses and profit in your books concerning what is actually in your bank records.It is a much simpler process than accounting, as it only involves the administrative task of data entry. Using this data, bookkeepers can provide information on your financial and business processes. Think of it as a long receipt for anything you purchase. This process of recording your transactions involves getting hold of receipts, invoices, or purchase orders and processing this information on a document in an orderly manner. It's about managing your finances and invoicing. It is the recording, tracking, and organizing of all financial transactions of your business. Learn more about the difference between bookkeeping and accounting.īookkeeping is a predominantly administrative task. Ever wondered which service suits best to your business needs and goals? More often than not, these two services are used interchangeably as they are similar because some bookkeeping tasks are completed by accountants and vice versa. Both services are essential for legal and financial reasons, but most importantly they help you be aware of your financial processes and business health. Did you know that accounting and bookkeeping are not the same services? They are similar but different.

Difference between bookkeeping and accounting