Anyone in the business world knows that bookkeeping and accounting are both essential parts to running a successful business. If you aren’t that experienced in business, you may not realize there is much of a difference between these two roles. Bookkeeping and accounting have different roles that compliment each other and work together to help you achieve success. Mecham Dicus & Company is here to talk about their differences and how they work together.
What are Tasks that Bookkeepers Do?
The main role of a bookkeeper is to log and record all the financial transactions of your business. This is the groundwork that is needed for an accountant to take them over. They generate reports as well that show financial trends and other pertinent data. Following are some of the main tasks that bookkeepers take on.
– Processing payments, receipts and invoices
– Processing and maintaining payroll
– Preparing initial financial statements
– Handling all reconciliation reports and reconciling accounts
– Managing all accounts receivable which are the amounts owed by debtors
– Managing all accounts payable or the money that is owed to creditors
– Taking care of all deposits
– Maintaining & backs up records
Roles & Responsibilities of Accountants
One clear difference between an accountant and a bookkeeper is that a degree and certification is required to be an accountant where a bookkeeper doesn’t usually have to have this to qualify for the job. Once all the records are done by the bookkeeper, an accountant is the person that analyzes all of the financial data that the bookkeeper passes on. The accountant will produce financial reports that bring all the different aspects and facets of your business’s finances together, so you have a clear picture of where your finances stand. Here are some of the tasks that accountants are responsible for.
– Analyzing data given by bookkeepers
– Performing audits, generating reports, and preparing financial reporting documents like tax returns and other documentation the IRS requires
– Planning for taxation
– Providing information about financial forecasts and trends
– Assisting business owners on what certain impacts financial decisions have
– Providing regulatory compliance
Do You Need a Bookkeeper and an Accountant?
As far as accountants and bookkeepers go, they both work best when they are working together. Their roles complement each other, and businesses will grow best when they have both. Often, accountants will serve as advisors of bookkeepers to ensure all their work is accurate.
Bookkeeping, Accounting & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you own and run a business, you likely know how important both bookkeeping and accounting is to your business. At Mecham Dicus & Company, we offer both services to give you the full financial picture of your business. It is our goal to help you achieve as much success as possible as we work with your financial records and bookkeeping. Our expertise and experience make us the right choice for you. Call us today!