Affordable Accounting & Bookkeeping Services

Why Small Businesses Need Both Accounting and Bookkeeping

Accounting calculator

Accounting and bookkeeping are different roles in your company’s finance department and they are both essential in managing your business. However, they each follow different processes.

You’ll need both accounting and bookkeeping to help manage your money. In today’s short discussion, we’ll point out how dedicated bookkeeping and accounting services can help you manage your finances better.

A Bookkeeper’s Responsibilities

A bookkeeper is responsible for recording all financial transactions made by a company. They can itemise and show complete details of expenses and payments. It lists which department it went to with corresponding dates and amounts. Bookkeepers also oversee payment and payroll schedules to avoid missing important payments for daily operations.

All credits and payments received by the company are itemised and documented for monitoring cash flow daily. Among modern bookkeeping solutions used by outsourced services include advanced bookkeeping software to keep all data organised well.

Balancing and Bank Reconciliation

At the end of each month or business period, all the tallied data is balanced. Balancing the books allows bookkeepers to check if all total expenses and incoming earnings balance out each other. 

That means no misallocated or missing funds, and all earnings are accounted for, with all expenses official and counted within operating budgets. Bookkeeping services can keep all financial data complete and correct.

Bookkeepers also perform bank reconciliations. It means that all business transactions appear on the correct bank accounts and are detailed accordingly. No deficits are left out, and every payment and earning is duly documented on the ledger and each bank account.

A bookkeeper works better in tandem with an accountant to complete your financial processes. They both leave you with more time for other business operations. They both help you manage your business with less stress and faster results.

Accountant Responsibilities

Bookkeepers prepare all the recorded financial data to present a complete financial picture of your business for a certain period. Accountants can also do basic bookkeeping. On their own, accountants must be certified public accountants and hold an accounting degree to provide their services officially. They handle the process that involves analysing and making financial decisions based on your collected financial data.

Accountants follow through with these financial data findings to organise the data and give you sound financial advice. Small business accounting services help in major adjustments and business decisions. Additional funding and cost-cutting changes are analysed and given consideration after reviewing complete business finances.

In addition to providing financial advice, accountants prepare correct financial statements and tax returns. Their professional expertise helps file error-free tax returns. They use correct financial statements that recognise all the correct tax payments, deductions, and credits. It helps the company avoid accidental tax omissions and filing errors while helping with proper returns and tax deductions as proper credits.

Final Notes

Many businesses today run better with the right accounting and bookkeeping services. Outsourcing your finance department helps you deal with main business operations better. Professionals can help you manage your money and make better business decisions from qualified personnel.

We at BarrettStacey Accounting understand the rigorous demands of running a business while monitoring your money. It can be quite a lot to handle. You need our professional accounting and bookkeeping services to streamline your financial processes. In that case, leave your heavy financial responsibilities to us. Ring us today and get the real financial services you need.

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