When you’re looking for someone to manage your financials, you might find accountants and bookkeepers.
So, what is the difference between an accountant and a bookkeeper? How are you supposed to know which one is best suited for your needs? And, do any of their job duties overlap? Here’s some information, so you can make the right decision for your business.
What Does a Bookkeeper Do?
A bookkeeper records your financial transactions. They also make sure they are classified to the correct accounts. These transactions can include your sales, payroll, and purchases. This is an administrative role that handles the day-to-day tasks of recording financials.
What Does an Accountant Do?
An accountant can be considered a bookkeeper. They can handle your daily transactions, but they must also be able to provide you financial insight based on those numbers. Accountants have the background to know why one thing affects the other. They analyze, review, and interpret the data from your bookkeeping software. An accountant can help you make business decisions from the financial data collected.
Do You Need an Accountant or Bookkeeper?
If you’re savvy enough that you can read all the financial reports yourself, you might need the services of a bookkeeper. Eventually, you should be able to interpret those statements and reports, no matter who you hire. If you’re growing fast enough that you no longer have the time to dive into the reports on a regular basis, you might need an accountant to manage this task.
While we would love to tell you which one to choose, it is dependent on your situation and future business plans. If you’re at a place where you can’t afford to hire a full-time person, consider outsourcing this job. You might also consider hiring a company to assistant your accountant with the data entry. Outsourcing the financial aspects of your business isn’t just for the big guys anymore. It can be a smart financial decision for your company’s bottom line.