When Do You Need a Bookkeeper vs. an Accountant?
Different kinds of financial professionals are important for the smooth operation of any business. But how many people truly understand the differences in the role that a bookkeeper plays in a business versus the role played by an accountant? The work of both of these professionals is crucial in keeping a business above water financially, and you can’t really have one without the other. The bookkeeper and the accountant are the alpha and the omega of any business’s financial operations, and since one of the reasons a business exists is to make money, the bookkeeper and the accountant are the engine and the gasoline of any business.
Accurate Record Keeping vs Financial Analytics
The roles of a bookkeeper and an accountant actually support one another. However, the bookkeeper’s work starts at the beginning and the accountant’s work finishes things up. The bookkeeper is the person who provides accurate record keeping for the business, keeping track of financial transactions and balancing ledgers to show what’s coming in and what’s going out. Besides posting debits and credits, bookkeepers may also manage payroll for the business as well as create billing invoices.
On the other hand, the accountant takes the data that is collected and recorded by the bookkeeper and analyzes it for the use of the business’s management. This empowers the management to observe the financial trends that are taking place as the business operates so that it can formulate more effective business strategies. Accountants also handle many of the complex business tax issues and help a business to stay compliant with tax codes and laws, while maximizing all available deductions. In general, accountants have more education and training than do bookkeepers, with an associate or bachelor’s degree as well as professional certification.
Call to Schedule a Free Consultation With an Oregon Certified Public Accountant Today
If you are interested in hiring some financial professionals to ensure the smooth operation of your business, call to schedule a free consultation with an Oregon certified public accountant today. The skilled professionals at the digital accounting firm Perpetual CPA understand how important accurate bookkeeping and accounting are to your business all year round as well as at tax time. Visit our web site at perpetualcpa.com or give us a call at (503) 217-4114and speak with our knowledgeable staff to set up your consultation. We look forward to helping you make your business the most financially efficient it can be.