If you’re like most small business owners, your expertise in some field other than accounting is what drives your business. You’re a web designer, a marketing professional, or some type of retail online or bricks and mortar shop owner. Besides, bookkeeping isn’t that hard, it it? You can keep track of sales, purchases, receipts, payments owed or made all on your own. Can’t you? You probably can but is that the best use of your time? And what’s the difference between bookkeeping services and accounting services anyway? Do I need either, neither or both?

To answer that question for your business, you need to understand the difference between a bookkeeper and an accountant. A bookkeeper records all daily transactions of a business. This will include purchases and sales, as well as keeping track of all receipts, and processing payments and checks on a timely and reliable basis.

An accountant interprets the records the bookkeeper has prepared and makes sense of the information so that the business owner has accurate financial information to make business decisions based on facts rather than guesses. An accountant knows all the accounting rules to be sure your finances are properly managed and prepares tax returns that minimize your tax liability legally. An accountant is a professional, meaning they have passed tests and experience requirements, as well have specific education that certifies them as such.

Because their functions are so different, most companies need both a bookkeeper and an accountant. Your bookkeeper may only need to work part time to keep track of your income and expenditures, and an accountant may be needed once a week, monthly, quarterly or yearly, depending in the type of business you have.

Or you may need an accountant to update your financial information on an occasional basis to provide accurate information to make an informed business decision. If you’re considering purchasing new equipment, hiring a new employee, or borrowing money, you need to know the state of your business at the current time, and what is expected in the future. Without timely information, you could make a mistake that could destroy or severely damage your business.

The smart strategy is to contact us at A&B Accounting and Business Solutions,LLC to discover how our accounting professionals can work for you to provide accurate and up-to-date financial information.  Allowing you to concentrate on managing your business, while we manage your accounting, is the best way to ensure your business thrives and you reach your goals.