These two job roles have tedious and mundane tasks yet both are vital in growing your business.
Accounting and bookkeeping are two job roles that go hand in hand with your business. Both roles, if done correctly, will help you in making informed decisions with regards to your business’s finances.
Maintaining the accuracy in both bookkeeping and accounting enables you to keep track of financial transactions in and out of your business. Keeping your accounting and bookkeeping records precise and organized is duly required by the law, and more importantly, it is essential in keeping your business up and running.
A lot of people don’t really distinguish the difference between the two roles. In most cases, people usually classify bookkeeping as accounting or vice versa.
What is accounting?
Accounting refers to the process of recording, summarizing, analysing, and interpreting of financial transactions in one’s business.
It is the accountant’s role to overlook how financial records are stored, organized, and updated by the bookkeeper in the accounting system. Perform an assessment of all financial records and advise the management on the business’s financial status. It is also the accountant’s role to prepare financial reports and summaries that are required by the law.
And lastly, it is the accountant’s responsibility to keep track and be updated by the government guidelines and make sure that the business complies with the given regulations in the industry.
What is bookkeeping?
Bookkeeping is basically record keeping, it is the process of recording all financial transactions in a business. These financial records can either be in a form of income or expenses. All records are kept organised, up to date, and are entered in a bookkeeping software that is designed for a specific type of business.
A bookkeeper is responsible for managing the software used by the business. Observe proper bookkeeping policies and procedures. Manage all banking activities, including making bank deposits. Assist the accountant in preparing financial statements and in performing audits.
It is also the duty of a bookkeeper to keep all financial processes and records confidential especially when it comes to the employees payroll and salary.
Outsourcing your accounting and bookkeeping
All you have to do is choose the right partner to outsource your accounting and bookkeeping. These two job roles have tedious and mundane tasks yet both are vital in growing your business. Outsourcing your bookkeeping and accounting can help your business daily operations work smoothly, reduce the risk of bookkeeping errors, and be more efficient while saving costs.
