Recording a business’s financial

Adobe’s Future of Time Report found % of small and midsize business SMB leaders agreed that filling out forms like expense reports got in the way of their regular work. bookkeeping vs accounting When you first start your business you may find it easy enough to prepare your own financial statements. But as your company grows you’ll probably want to look into hiring a bookkeeper or an accountant. The question is: Which one is right for you? To answer this question you’ll need to understand the main differences between bookkeeping vs.



Accounting the primary reasons you need help with your finances what Email Marketing List your budget is and whether you need to hire someone full time or work with an external accounting firm or bookkeeping service. What is the difference between accounting and bookkeeping? While the duties of bookkeepers and accountants can overlap there are a few key differences. Bookkeeping is much more focused on data entry and involves preparing many of a business’s financial statements. Meanwhile accounting looks into whether these statements are accurate how they interact and what they say about your company’s health. Bookkeeping Bookkeeping tasks involve tracking andtransactions. A bookkeeper handles most of the data entry and administrative work related to your business’s financial transactions.





Some of the documents you track in the bookkeeping process include: Bills Invoices Payroll Bank statements Purchases Receipts Financial statements like your balance sheet or income statement Bookkeeping involves a lot of data entry and you need to ensure the information is accurate. A bookkeeper will also do the first check on your general ledger to ensure your accounts are balanced. You may have followed single-entry bookkeeping where each transaction is recorded in one account when you first started out. But you’ll probably need to switch to double-entry bookkeeping where each transaction is recorded as credit to one account and debit to the other as your company grows. This form of bookkeeping adds another check on balancing your books and it’s generally accepted accounting principles GAAP -compliant.