Bookkeeping Versus Accounting
As a small to medium business owner, you will know the management of your finances is important for success. You’ll also be aware, that in order to manage those finances, it’s important to have accurate bookkeeping and prudent accounting. But are they tasks performed by the same person or are they different?
Here at Build Growth Accountants we meet a lot of business owners who are confused about the different tasks performed by a bookkeeper and an accountant. And it’s understandable – both are important for a successful business, both work to assist you with your finances and both can have varying roles depending on the business they work with.
However, there are some key distinctions between the two. And, to ensure your finances are in order, you should make sure you know what they are.
Bookkeeping is focused on the administration of your finances, ensuring they are recorded and organised correctly. Typically, bookkeeping tasks include payroll, invoicing, tracking receipts and bills and recording business transactions.
Quality bookkeeping is essential to the growth and development of any business. Small to medium business owners wear many hats, but bookkeeping is something that should always be outsourced to a professional.
Outsourcing your bookkeeping will ensure your financial records are highly accurate and well-documented. And importantly it will save you valuable time and money.
Accounting, on the other hand, has a larger area of responsibility and focuses on the strategic plan of your finances. Accountants rely on highly accurate bookkeeping figures to evaluate and interpret the financial health of your business.
Typically, an accountant will produce financial statements and reports, create budgets, complete and file tax returns and analyse the overall financial performance of your business.
Quality accounting is vital. It can allow you to strategically track and analyse your finances, keep your business in line with tax and other legal obligations, and provide a solid platform for making future business decisions.
Merging your bookkeeping & accounting
Quite often bookkeeping and accounting are done by different people in a business. it’s important to know that if you outsource your bookkeeping, it’s unlikely that person is a qualified accountant. And if you only outsource your accounting at tax time, you don’t receive all the value that an Accountant can provide.
It’s not necessary to make a decision between outsourcing bookkeeping versus accounting services. An efficient and more accurate way of managing your finances is to find a business that can manage both. The benefit of choosing one business to manage both is that there is far less likelihood of incorrect data and missing information.
More importantly, with everything managed in one place, you will have a single point of contact who holistically understands the financial health and strategy of your business, helping you make more informed and strategic decisions for your business in the future.
The benefits of outsourcing for your business
All businesses understand the importance of good financial management when it comes to business success. Outsourcing the bookkeeping and accounting in your business to a reliable and experienced professional is one of the best business decisions you can make. Not only can you free yourself from much of the time consuming paperwork, leaving the number crunching and strategy to a qualified professional, but outsourcing is an affordable option for many businesses who can’t afford to employ someone.
The decision to outsource gives you qualified knowledge at a fraction of the cost, making it a smart business strategy.
Build Growth, for all your needs
With Build Growth there’s no need to compromise your business management by choosing between professional bookkeeping versus accounting services. By using Build Growth for all your bookkeeping and accounting you get the benefit of one person who understands all of your finances up close. This makes annual tax returns and BAS statements and planning for business growth a lot easier.