Bookkeeping and accounting are inevitable practices in all business, even in small startups where the amount of financial transaction is still quite low. In fact, accountants and bookkeepers are the backbones of business development, ensuring that all incomes and expenses are manageable enough to allow for profitable ventures. With today’s modern technologies, particularly cloud computing and internet banking, small businesses have easy access to on-demand online bookkeeping and accounting services. For startups, such technologies eliminate the needs for hiring full-time accounting staffs without losing the benefits from professional financial supervisions. Bookkeeper and accountant handle different tasks; although their jobs can overlap each other’s, it is important for small business owners to understand what they need for efficient hiring.
Bookkeeping vs. Accounting
Although an accountant is actually qualified to do a bookkeeper’s jobs, both are stand-alone professions because they handle different tasks. A proper bookkeeping is essential for accountants to do their jobs; an accurate accounting is necessary so business owners can make informed business decisions.
As the name suggests, bookkeeping focuses mainly on keeping good records of all transactional activities by writing them down in a book/journal/ledger. A bookkeeper has the obligation to generate understandable financial data from all business transactions for examples purchases, incomes, debts, profits, and loss. Bookkeeper also handles invoices (submitting them and following up on them), making sure all employees file the right paperwork for payroll, and paying company’s bills.
Accounting covers much broader view. An accountant can analyze financial report to look for discrepancies and predict sales trends. An accountant can also handle tax-filing and end-of-year financial statement. Based on bookkeeping data, an accountant can act as Chief Financial Officer (CFO) and give invaluable advices that will impact long-term business strategies. For example, an accountant can offer professional analysis for potential business growth based on market trends and current financial conditions. In case your business needs to apply for a loan, an accountant is able to assist with documentations.
Good combination between accounting and bookkeeping opens the door for long-term financial success. They work together to make your business more accountable and scalable to achieve steady growth. At 360 Accounting Services, we offer not only professional bookkeeping services but also qualified accountants and Virtual CFO to help you oversee your current business and financial situations. Trends in the market and financial conditions are dynamic factors that affect your chance of success; 360 Accounting Services are dedicated to provide thorough review of your company so you can make well-informed educated business decisions.
To get the right help for your Bookkeeping/Accounting needs contact 360 Accounting services on 1300 360 749 or click here to book an appointment.