There comes a time in the life of every small business when bookkeeping and accounting become a time consuming task that keeps the owner of the business from doing whatever it is that they do best. The question is do you out source these jobs to an accountant or a bookkeeper, and is there a difference.

The terms accountant and bookkeeper are interchangeable in the minds of many people but their jobs entail vastly different duties.

A bookkeeper is literally that, the person that is responsible for the daily recording of financial transactions. They may be responsible for anything from recording payroll to entering accounts receivables. Along with the daily reporting of financial transactions, bookkeepers usually retain the documentation involved in the transactions. A good bookkeeper is far more than just a data entry person; their day to day knowledge of your business can provide the necessary heads up when matters pop up that require a higher level of expertise.

An accountant, using the data provided by the bookkeeper, provides business advice and analysis. Accountants are also the professional you want on your team when dealing with the various federal, state and local tax collectors knocking at your door. Often the bookkeeper and accountant work together, this is particularly true in businesses with payroll, fixed assets or a large amount of inventory.

It is best practice to use both a bookkeeper and accountant. While a bookkeeper handles the day to day reporting, having a third set of eyes provided by the accountant inspect the books periodically not only eliminates mistakes but deters fraud and theft.

When selecting either an accountant or bookkeeper it is important to choose one that can communicate to you in plain English. Accounting professionals often get caught in techno garble they need to be able to explain concepts so they can be easily understood.  Another thing to keep in mind when selecting an accountant is to see if that accountant is available for you, does he or she take your calls, does he or she call you back in a reasonable amount of time.  Many accountants nowadays are too busy to get back to you and so availability is very important when choosing an accountant.

The importance of establishing an accounting system goes far beyond not being the guy trying to find an accountant to sort out his boxes of records while the IRS waits to lower its sword. A good bookkeeping system in the hands of qualified accounting professionals is a key to measuring a business’s health and planning a route to a prosperous future.

A&B Accounting and Business Solutions, LLC is always available to discuss how our services can help you as a business owner concentrate on what you do best. Our business professionals are eager to provide you the services and knowledge you need to continue growing your business.  We want you to know that you can always call us about any questions you might have.  Call us at 954-596-9966 to discuss your accounting needs for your small business or your medium size business.