Bookkeeping and Accounting: What’s Best for a Small Business?

business bookkeeping

Accounting and bookkeeping are considered interchangeable terms; but in reality, both have a significant difference on the basis of job and work experience. A small business owner should know the difference between both terms because both people play an important role in your business organization. The accountants can perform the functions of bookkeepers, but the bookkeepers can’t perform the functions of an accountant because the bookkeepers don’t have knowledge of accounting.

Bookkeeping vs Accounting

A common person considers that the bookkeeping and accounting, both are the same things. In fact, both are different because the bookkeeping involves the procedure of recording the monetary transactions, while the accounting is a procedure to design financial statements.

• Bookkeeping is a procedure to record all business transactions in a chronological order. It is important to record all business transactions to support the work of accountants.

• The accounting is a proper information system to record and classify important financial transaction, interpret and analyze the financial data and prepare a report for the help of stakeholders. It proves helpful to make important decisions for your business organization.

Bookkeeping

It is a significant part of the accounting system because without bookkeeping, you can’t start accounting work. The bookkeeping is an important part of accounting because in this procedure, each and every financial transaction is recorded and the bookkeeper is often known as an accounting clerk. They are responsible for protecting the data and ensuring the accuracy of data. The bookkeeping is an important part of accounting and a bookkeeping job can be performed by accountants as well.

Accounting

The accounting is a complete process to interpret the recorded data because the data recorded during the bookkeeping process are often used to make financial statements. A professional accountant should focus on auditing, financial and managerial accounting or tax accounting to enjoy the benefits of a specialized career.

Bookkeepers vs Accountants

The bookkeeper can perform this job after getting a certification. The bookkeepers are responsible for maintaining regular accounting records, mention debit and credit transactions, generate invoices for the clients and handle payroll. The small business owners may require an on-the-job training to handle payrolls. In a small business organization, the bookkeeper may perform the role of an accountant.get latest news and information at http://graphic.com.gh/business/business-news/51918-accountants-urged-to-embrace-change.html

Accountants

If you want to work as an accountant, it is important for you to have a four-year college degree. You should have a good educational background and experience to prepare financial books. The business organizations often prefer to hire a qualified chartered accountant for the preparation of financial accounts and to make regular financial entries. You can work in the accounts department as an accountant, assistant accountant, and accounting manager.

business bookkeeping

Although the bookkeeper in Melbourne performs management activities for the help of business organizations, the bookkeeper can’t work as an accounting professional, but an accountant can handle the work of a bookkeeper. While working for a small organization, a bookkeeper may handle the duties of an accountant, but in a larger organization, it is really difficult for an account holder to manage everything.

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