Benefits of bookkeeping
Accurate and up-to-date financial information is key to properly managing a business. Here are some of the benefits of outsourcing bookkeeping services.
1) It helps you focus on what really adds value to the business.
2) You will be able to reduce costs by not relying on an in-house accountant to be responsible for your bookkeeping.
3) It is easier for a company to invest in specialized software in information systems that would otherwise be less efficient and more expensive.
Benefits of Accounting
Some of the key tasks for accountants include tax return preparation, conducting routine reviews of various financial statements, and performing account analysis. Another key responsibility for accountants includes conducting routine audits to ensure that statements and the books are following ethical and industry standards.
Difference between bookkeeping and accounting
Bookkeeping and accounting are both important parts of managing your finances. At first glance, the two can seem quite similar, but there are a few main differences.
Bookkeeping focuses on recording and organizing financial data. Accounting is the interpretation and presentation of that data to business owners and investors.
Bookkeeping typically consists of:
- payroll
- invoicing
- receipts and bills
- recording business transactions
Accounting typically consists of:
- financial statements and reports
- budgets
- tax returns
- analyzing business performance
The tasks that bookkeepers and accountants do vary between businesses. Bookkeepers working for smaller businesses might do some basic accounting duties. There’s often overlap, and the duties may change a lot from one business to another.
