The biggest mistake a small business can make is to think like a small business…
Another mistake a small business owner is often found guilty of making is of not hiring qualified professionals for crucial tasks within the business. Think back to the last time you hired an accountant to make sense of the many numbers erupting at the end of every month? When did you hire a professional to help you file income and other tax according to state and federal laws?
However, knowing what professional to hire and when, is actually more important than knowing you need to hire a professional.
In a purely finance sense, all businesses are concerned with hiring an accountant.
So, how does bookkeeping help a business?
Bookkeeping – What Is It
This finance activity literally means the ‘act of keeping or maintaining’ books or book of accounts.
Bookkeeping involves extensive and accurate data input, conducted by professional bookkeepers.
Few bookkeeping activities are as follows:
- Receiving and recording payments (made by customers)
- Inputting invoice and voucher details into the system
- Efficient processing of payroll information
- Making and recording payments (made to vendors)
All above activities and transactions are mechanical in nature, meaning the bookkeeper follows a given set of procedures on a repetitive basis. Common activities of a financial nature are recorded daily in this manner. Additionally small businesses require only these common bookkeeping tasks for adequate fulfillment of their accounting needs.
Accounting – What Is It
This mode of financial activity refers to the systematic and comprehensive recording of financial transactions. In addition, summarizing, analyzing, and reporting a business’s financial transactions also come under this process.
Accounting is one of the most important functions for any business, often handled by an accountant at small firms. Large companies often feature a separate and sizable finance department to conduct accounting tasks.
An accountant is often considered one of the main players in any business, in any industry. It’s the accountant who monitors and records money flowing through the business.
Other duties and tasks an accountant performs are:
- Conducting audits or financial statement analysis
- Examine financial statements to ensure accuracy
- Ensure that statements and records comply with federal laws and regulations
- Organize and maintain financial records
- Compute owed taxes, preparation of tax returns, secure prompt payment
- Make best-practices recommendations to management
- Suggest ways for cost reduction, enhancing revenues and improving profits
Are you confused between hiring a professional bookkeeper or an accountant for conducting financial services? Why not go for both professionals? A&B Accounting and Business Solutions, L.L.C will tailor the best accounting plan according to your business’s needs! Just talk to us today.