Accountants are also an ideal choice if you want help finding ways to grow your business. They will assess your figures, both past and current, using their analytical skills to recommend the best course of action. When you need an accountantĪn accountant can provide you with support for your finances. For those needing further help with anything tax-related, the services of an accountant are required. If you have any employees, they can also manage your payroll for you. A bookkeeper can help you keep on top of your finances by chasing missed invoice payments.
#DIFFERENCE BETWEEN ACCOUNTING AND BOOK KEEPING FREE#
Getting some help with your bookkeeping can free up time that could be spent on other aspects of your business. There are also a number of other considerations you should make before seeking either service. For small companies or independent professionals, hiring a bookkeeper may be more applicable. The question may now have been answered for you, but sometimes, it’s a little harder to figure out which one you need.Īs an accountant provides a wider variety of services, including taking care of the compliance aspects of running a business, they’re generally more suitable for larger organisations. Their tasks include tax and financial planning, auditing, and preparing Self Assessment tax returns.
They take into account all finances, and perform duties which have an impact on the entire accounting process.
Whilst a bookkeeper is responsible for the first stage of recording the figures, accountants analyse, re-classify, summarise and report on them. Bookkeeping can also involve ‘reconciling’, which is a way of checking that all the transactions in the bank account have added to the bookkeeping records.Ī bookkeeper would also be involved in chasing customers that may not have paid their invoice, and ensuring that business expenses are paid in a timely manner. Some of the tasks involved include producing and handling invoices, and recording when the business receives income and when it spends money that can be claimed as expenses. They ‘keep books’, meaning they accurately record financial transactions. Here, we explain the distinction between the two so that when it comes to your tax, you’ll understand which one you should be doing… What is bookkeeping?īookkeeping is a part of accounting work, and is often referred to as the more administrative side of the profession. The terms appear to be interchangeable, but ‘accounting’ and ‘bookkeeping’ are very different things. ‘What’s the difference between accounting and bookkeeping?’ is likely something you’ve wondered.
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