Are you a business owner with a growing organisation? Is your product or service is selling well and your team is expanding, but you’re finding difficulty in administrating the needs of your company. What do you do?
As you reach this crucial point in your business’ development, it’s important that you ensure you have the right support. Poor planning at this junction can lead to the excessive administrative tasks leading to less time for your other duties, leaving you with little time to focus and develop new products and services and do what originally drove you to found the company. Opting to outsource some or all of your financial administrative tasks to an accountant or a bookkeeper can make your job easier and give you back that time, allowing you to dedicate your growing company the attention it deserves.
This Leaves us with a question to choose between an accountant and a bookkeeper. How do you know which would be optimal for your needs?Let us see in detail about the difference between a bookkeeper and accountant for better understanding
What’s the difference?
In the Industry, many people use ‘bookkeeper’ and ‘accountant’ interchangeably, both are separate roles with their own utility. Though they both assist in tax returns preparation, recording the transactions, and creation of documents, they differ in some fairly significant ways.
A bookkeeper’s primary job revolves around the creation and maintenance of the general ledger. This is the master document which records all financial transactions the business participates in for both sales and expenses. Their job also involves the creation of invoices and the completion of payroll – all the minute details that keeps a business running.
On the other hand, an accountant takes a broader view that encompasses the entire business and its future goals. Their role is more analytical, often involving scrutiny of the operational costs of the business to ensure optimum performance at minimal cost. They will also frequently act as an advisor, helping business-owners understand the financial costs and potential repercussions of pursuing certain courses of action.