One of the most meaningful things you can do for your brand-new business is hiring the right talent. When building out your team for the first time, it’s important to know precisely what people to look for and what roles you want them to fill. This can be easier said than done for new franchisees or small business owners just starting out on their own for the first time. Who are the principal personnel you should be hiring? Let’s look at the difference between a bookkeeper vs an accountant. 

Bookkeeper vs Accountant: What’s the Difference?

Many entrepreneurs want to hire financial advisors early on in the business development process to keep track of critical monetary needs. The only problem is that many people hire an accountant when they really need a bookkeeper – and vice versa. The average person does not know some of the major differences between bookkeepers and accountants, which could end up costing you a lot of avoidable expenses. 

So, what exactly is the big difference? First, let’s discover the similarities and contrasts between these two key roles that you should look to employ early on as you continue to grow your company from the ground up.

Accounting, Defined

The official definition of accounting can be summarized as the act of recording and studying a company’s financials. Accountants are great people to have as financial consultants since they are responsible for collecting and compiling every piece of data that has to do with money. Their day-to-day job may consist of analyzing the way the company spends money, tracking its transactions, and creating reports that give more details about the business’s financial health. A lot of accountants will have industry certifications that allow them to safely handle and process your company’s money.

Why Hire an Accountant? 

Some companies are small enough that they might not feel the need to have an in-house accountant. However, that doesn’t mean that a company can’t still benefit from the services an accountant might bring to the table. Whether through an in-person contract or with automated accounting tools, it’s critical for your company’s success to have some form of accounting to rely upon. 

Some of the biggest benefits of working with accounting services include: 

• The ability to save money and cut costs in ways you may not have considered on your own 
• Professional connections with money-managing experts
• Certified assistance with files and forms come tax season
• Industry-backed financial plans and spending strategies 

It is too difficult to manage all of your company’s monetary needs alone, which is why you can benefit from having an accountant or an automated accounting system in place with your company’s best financial interests in mind. 

Bookkeeping, Defined

Where accountants report, analyze, consult, and manage financial needs, bookkeepers collect and record them. The day-to-day duties of a bookkeeper usually involve keeping physical track of all of the company’s transactions and expenditures by storing all of this information in a database. Most bookkeepers do not require a financial license to help keep a record of a company’s expenses. However, some certifications may be required on an individual level, depending on the nature of the job. 

Why Hire a Bookkeeper? 

A lot of the work that bookkeepers and accountants do can overlap, which is why most people often confuse these two job roles so easily. It is important to have a bookkeeping professional around to keep a close eye on everything your business does financially. Suppose there is ever a transaction dispute or tax discrepancy. In that case, you can rely on a good bookkeeper to have an exact record of your entire monetary history in order to resolve any issues as quickly as possible. 

Other benefits of having a bookkeeper are: 

• Saving a lot of time managing administrative tasks on your own, leaving you to delegate financial needs to the pros 
• Having a tight record of your transactions, which can save you money in the long run
• Enjoying an increase in profits as you could pay fewer accounting fees
• Receiving critical and important financial info ASAP

Bookkeepers are typically responsible for creating important items like balance sheets, invoices, income statements, and more. Accountants take that information and use it to process payments, analyze transactions, and take action based on the best course of action for the company. 

Get the Financial Support You Need with Bookkeeping & Accounting Services Today

Bookkeeping vs. Accounting: which is right for you? Depending on the size and budget of your business, you could benefit from both of these vital financial services. These are some of the most important matters to keep track of, especially as your company continues to expand. A bookkeeper helps you record all necessary information; an accountant will process payments while advising you on the best next steps to take. 

As an affordable solution to all small business owners and franchisees, Indevia Accounting can provide automated bookkeeping and money management services on a comprehensive scale. Process payroll, pay bills, and track transactions all through an automated process. Improve your company’s financial health while you continue to profit at an increasing rate.