Accountants and bookkeepers are essential for any business, especially small businesses. Whether you want an accountant or a bookkeeper depends largely on the size of the company and the kind of role they are expected to fulfill.
You have to know a little about both of them to understand who will be ideally suited to handle your business finances.
What does a Bookkeeper do?
A bookkeeper is responsible for handling all your day-to-day financial transactions. They will keep track of all your purchases, sales, invoices, receipts, bills, payments, and the amounts debited or deposited in your business account. They will also prepare financial statements if required and then hand over the findings to your accountant if you have one.
What does an Accountant do?
The role of an accountant is more extensive. They will maintain your business financial records. In addition, they will analyze the data that your bookkeeper has provided them and can advise the business owner about their business’s financial health, helping them make better financial decisions.
They can also generate income statements and balance sheets. Most importantly, they will help you with audits and tax filing. They can help you build a better financial future later.
The Difference Between an Accountant and a Bookkeeper
As seen from the above analysis, an accountant will provide the business owner with year-end records and maintain all balance sheets. They will help with audits and analyze reports for you by reviewing financial statements. They will also advise the business owners about major financial decisions like investing in assets, buying equipment, or even getting a loan for the business.
The accountant can help them build out a plan that will enable them to pay their taxes on time and make timely monthly payments. It is ideal to discuss this with your accountant before making any significant financial decision.
Bookkeepers will help you keep a record of the cash deposits and withdrawals. They will record all your financial documents and use bookkeeping software for your invoices, bills, payments, and deposits. They will also keep track of any documents that will help you to file a tax return. They can also conduct monthly bank reconciliations to generate monthly financial statements.
Bookkeepers can also help you process payrolls and can help you to file your sales taxes.
Some functions of bookkeepers and accountants often overlap. Once you have a detailed consultation, you can decide which type of professional is ideal for your business.
Why are Virtual Bookkeepers Highly Sought After Today?
The best thing about bookkeeping today is that you can outsource your tasks to a virtual bookkeeper. They may be located outside your city or your time zone; however, they carry out all the tasks efficiently with the help of advanced bookkeeping software so that you don’t have to.
You need to give them access to your business statements and transactions, and they will help you keep track of everything remotely. You may coordinate with them weekly or monthly for an overview of your finances, depending on your business’s needs.
A virtual bookkeeper will keep track of your cash inflow and outflow and ensure timely bill payment by sending reminders to the clients. They will coordinate with customers and make entries for payables and receivables. They will help compile year-end financial documents that are easy for you to understand and even handle a delinquent account and get it back on track. The best part? All of this can be achieved remotely.
At Mountain Top Bookkeeping, we provide top-notch financial services to our clients. You do not have to worry about maintaining your records once you have trusted us with your finances. Our experts will help you with every aspect of your financial business, from daily accounting and bookkeeping, to year-end tax filing and audits.
Call us today, and our experts will help you with your financial queries and start a journey to keep your business finances up to date for you.