When most people think about bookkeepers and accountants, they would have a hard time describing the difference between each role. While both share a common goal of supporting your business, they do it in very different manners and at different times.
The question we occasionally get asked by small business owners at Raleigh Bookkeeping is, “Do you need both?” This article is going to dive deep into that subject.
We have to begin by explaining the major differences between the two. Bookkeeping involves tasks such as recording financial transactions, posting debits and credits, maintaining general ledgers, generating invoices, and other items.
Accounting involves analyzing costs of operations, financial reporting, statements and forecasting, tax planning, and tax filing.
While some of the tasks can overlap, there are major items that only one of those roles typically handles. If a business owner is concerned about auditing, corporate compliance, and taxation advice, a CPA is typically involved in that.
As a general rule, we recommend that business owners have both. Use us at Raleigh Bookkeeping to handle the general ledgers and daily financial processes that keep your business running full steam and have your accounting team analyze your finances and help you with planning, reporting and financial advice.
One additional thing we want to stress is that since there are differences in the services bookkeepers and accountants offer, it can be seen that both are vital to the growth of your business. Don’t view it as “Bookkeepers vs. Accountants.” Please understand that both parties want to work together to best serve your financial needs.
For more information on how we can help at Raleigh Bookkeeping, contact us today. We’re a part of your team!