Bookkeeping and accounting services can both be handled by just one person but prior to you make any final decisions, see what all tasks usually involve. A bookkeeper is basically the official financial record keeper of your company’s finances. An accountant is basically the financial strategist of your company. This individual is in charge of creating a company budget, preparing for audits, offering company financial guidance and analysis, and providing overall business financial analysis and advice as well. While both individuals are needed for a small business, they are generally dealt with differently depending upon what kind of business you run.
Bookkeeping services are required when a business handles financial transactions. Examples of these would be selling products, receiving payments, paying employees, renting property, and so on. Bookkeeping details all these transactions and reports them to the accountant, who then reports them to the shareholders or the company itself. Generally, accounting duties would include writing financial statements, creating reports, analyzing financial data, as well as interpreting and making recommendations regarding any given transaction or report. Some bookkeepers are also involved in auditing, which involves closely examining financial statements to detect fraud or any sort of irregularity.
Bookkeeping services on the other hand handles day-to-day accounting tasks like preparing invoices, preparing reports, maintaining records of sales and purchases, and so forth. If you run an online store, you would obviously need accounting software to help you manage inventory, customer tracking, and so on. Without proper accounting software, your entire business would be put at risk, since you cannot track items bought and sold, how much each customer has paid, and what taxes they have paid, among other things. Therefore, if you do not have bookkeeping services, you are placing your entire business in jeopardy.