Bookkeeping vs Accounting*: How to know what’s right for your firm?
As your company evolves and matures, your resource needs will vary. That’s true across every function in your organization, including your financial operations. So when it comes to determining which resources you need to handle every aspect of your financial operations effectively, a question typically comes up: Should you hire a bookkeeper or an accountant? The answer depends in part on your current stage in your business life cycle. First, Some Definitions Before you can assess whether a bookkeeper or an accountant is the right fit at this stage in your company’s life, it’s important to understand the difference between the two. You’ll find many job descriptions to choose from, but the following is a good representation of how most organizations view these functions. A bookkeeper focuses on maintaining accurate records of a business’s financial activity, handling tasks like recording or tracking financial transactions, reconciling bank accounts, recording customer invoice...