Clients often cannot describe the difference between accounting and bookkeeping. I thought this would be a great opportunity to clear things up!
Basically a bookkeeper works from the bottom up. They enter the raw data, the day-to-day transactions of the business, into an accounting program to generate streamlined and ordered files. They also keep meticulous records and implement the processes and procedures which ensure that all information is kept in line with regulations. A bookkeeper works in your business and gives timely updates to help you keep your business on the right track.
Accountants however work from the top down. They receive the ordered data from the bookkeeper and turn that into meaningful information. This information can help a business owner fully understand how the finances have been tracking in the past and from this can project forward or budget for a future period. They also prepare income tax returns and year end reconciliations to align the bookkeeper’s raw data with the accountants finalised figures.
A good working relationship between your bookkeeper and accountant is crucial for your business. The roles are interrelated and do meet in the middle so clear communication and understanding of expectations is required.
Through my business AK Bookkeeping my team and I perform the bookkeeping function but have one distinct advantage over other bookkeeping business. I am a registered accountant choosing to work as a bookkeeper meaning we have ‘insider information’ so to speak. I know how to work from the top down AND the bottom up which means that our clients receive a more comprehensive service than a typical bookkeeper provides. We value our relationships with our clients varying accountants. Having an accountant on our team means we can ‘speak the lingo’ ensuring that communication between bookkeeper and accountant is effortless, roles and responsibilities are clearly defined and there is a seamless transition of information to your accountant at year end.
We offer all business interested in our services a free, no obligation, initial consultation so you’ve got nothing to lose and everything to gain! Contact us today!