Bookkeeper vs. Accountant: Which One do You Need for Your Business?


One of the most important aspects of any business is finances. Without proper money management, a business can’t be successful. It is always an option to handle the financial aspect of your business on your own, however it can be a very complex and time consuming task.


There are several different types of financial professions that are designed to help your business prosper. Often times, people often consider bookkeeping and accounting one profession, however they are different and both are vital to your business success.


Here is the difference between a bookkeeper and an accountant so that you know the role each one plays for your business.

Technology’s Influence

With the new age of technology, the thin line between bookkeeping and accounting is disappearing slowly. There is now a variety of bookkeeping and accounting software that makes these tasks easier for professionals.


Majority of bookkeeping software includes financial statements and analysis, which further confuses the definition of the two professions.


A lot of financial companies are transitioning to using digital software and resources to complete these tasks, making them more efficient and creating an ease of access to all financial documents.

Although these two professions are starting to merge together with technology, there are still key differences that are important to know when running a business.


Bookkeeper

Compared to an accountant, a bookkeeper has a more active role in the day-to-day financial responsibilities of a business.


They take care of the elements that keep the business up and running, which include things like creating invoices, keeping track of billing, running payroll, and creating general ledgers to document all transactions.


The core skill focus of bookkeeping is data entry and coding. They must ensure that all financial data is correct and coded to the right accounts so that financial information is both accurate and easy to access.


Accountant

Though accountants also deal with the ongoing finances of a business, the main difference is that they typically handle the finances that are already finalized and closed out.


Bookkeepers maintain current and active records of financial transactions, while accountants take those records and translate them. They interpret the financial data that the bookkeeper documents, compiling the information into financial reports.


These reports give businesses an idea of their financial progress and current standing. This helps to analyze the growth of a business and gauge any changes that may need to be made for improvement. Accountants also handle the tax portion of a business, providing tax planning and advice.


In short, an accountant and a bookkeeper complement one another in the financial world. They are both equally important to the success of any business.


Bookkeepers maintain an active record of all business transactions, while accountants interpret the records and act as financial advisors for businesses.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.


Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.


To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

 

Why Your Small Business Needs a Bookkeeper

Bookkeeping is essential for any small business to thrive

Business owners are multi-talented, but they aren’t the masters of all trades. Therefore, it’s essential that a small business has different departments so that employees have a clear role. Some employees are excellent when it comes to sales and others perform well in regards to administrative tasks. But what about the bookkeeping?  Bookkeeping is essential for any small business to thrive. Therefore, you should hire an entrusted individual or top bookkeeping firm like PL Consulting to make life easier for you. It’s a component of a business’ upkeep that you shouldn’t neglect. Keep reading for some for the top reasons why you need a bookkeeper.

Continue reading “Why Your Small Business Needs a Bookkeeper”

Bookkeeping Tips

Who accounts for all the transactions of a company?
You may have guessed a bookkeeper and you would be right.
A bookkeeper can provide financial reports, manage customer receipts, provide tax information to the government among a multitude of other tasks.

Let’s think about a hotel for example. It takes several key components and key players to make a hotel run smoothly. Booking agents are needed to manage the reservations. Maintenance crews help to repair any damage done to a hotel while janitorial staff helps the hotel to look clean and pristine. If a restaurant sits inside of a hotel, there is also staff to help cook the food and serve guests. These components are all front facing but what about behind the scenes? Who accounts for all the transactions of a company?

You may have guessed a bookkeeper and you would be right.

A bookkeeper can provide financial reports, manage customer receipts, provide tax information to the government among a multitude of other tasks. Keep reading for more detail of what bookkeeping entails and planning strategies for your small business.

Continue reading “Bookkeeping Tips”

3 Simple Tax-Filing Tips To Follow For Your Small Business

We are approaching the end of the year, which means right now is the perfect time to get all of your tax information in order.  If you are a small business, it is essential that you file your taxes on time so that you avoid any penalties.  Paying your taxes late can result in you getting in serious trouble with the IRS. PL Consulting can assist you with filing your taxes and make sure that you submit all of your forms before the deadline.  Luckily, there are a few simple tips you can follow when it comes to filing taxes for your small business.

Learn how to file your taxes for your small business.

Continue reading “3 Simple Tax-Filing Tips To Follow For Your Small Business”

Which Payroll Software Best Suits Your Business?

Payroll Software
The right payroll software for your business will depend on a number of factors. Learn some of your options below!

Streamline your company’s internal finances with a payroll software. Whether you are a large corporation or a small business, a payroll software is an essential ingredient for success. Modern and efficient, it organizes all important documents and manages employee pay periods. When business picks up, the payroll software will provide valued guidance with detailed financial reports. It is the unsung hero in the HR department. Selecting which specific program best suits your business model is one of the most important payroll management decisions. With a wide array of options available, three software programs have emerged as top competitors:

  1. Gusto
  2. OnPay
  3. BambooHR

Weigh the pros and cons of each payroll software to identify which program would mesh the best with your business. Keep in mind, each company is unique and presents distinct needs. Platforms designed for large corporations may prove to be incompatible with smaller businesses. Know your business and select the program that will provide the most support. Continue reading “Which Payroll Software Best Suits Your Business?”

How To Choose A Bookkeeper For Your Business

Learn how to choose the perfect bookkeeper for your business.

As a business owner, there might come a time a when you need help with your finances, especially if you have just got your business off the ground.  You might not have the time to keep track of every expense, so it is best that you hire a trusted source to handle your books.  You want to hire someone you trust that manage your cash flow as well as helping expand your business.  If you are in need of a bookkeeper, there are a few simple tips for choosing an individual handle your finances. Continue reading “How To Choose A Bookkeeper For Your Business”