14 Oct Do you know the difference between bookkeepers and accountants?
Each one has a unique and important place in your small business.
What do Bookkeepers do all day?
A bookkeeper is responsible for consistently recording daily transactions. The role of a bookkeeper is crucial in a small business for making sure all financial transactions are recorded properly.
These transactions are typically anything that involves the incoming and outgoing of money, including payroll, producing invoices, recording sales, debits and credits and the like.
Another important part of bookkeeping is keeping and maintaining a ledger. This is a document, either on paper, or in a computer spreadsheet or software, through which the bookkeeper records all transactions. The size and scope of the business determines the complexity of the bookkeeping system your business will need.
Some of these transactions may require supporting paperwork and are identified by the IRS. You can view a list of those requirements here.
What do Accountants do all day?
In contrast to bookkeepers whose positions consist mostly of recording and keeping track of objective transactions, accountants are more subjective in their daily duties. The accounting process is a higher level process than bookkeeping and requires more analysis of the financials, including preparing financial statements, analyzing operations costs and completing tax returns.
Often, accountants work to bring understanding of the broad financial picture for the business owner. The result is a more complete understanding of profitability and cash flow in the business.
At Two Roads, we specialize in excellent bookkeeping. Please don’t hesitate to contact us if we can help you with your bookkeeping needs. We make life simple.