Accounting vs. Bookkeeping

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accounting desk with money, receipts calculator and computer

Bookkeeping and accounting are imperative for any business. Being on top of your finances is essential for a thriving business. Many people use these terms interchangeably but there are important distinctions between the two. So let’s break it down below: Accounting vs Bookkeeping.

What is a Bookkeeper?

A bookkeeper is an individual who keeps a record of a business’ cash flow; everything that comes in and goes out. They prepare financial statements based on this data for accountants and business owner’s to decipher as well. 

Generally, bookkeeping duties include:

  • Record financial transactions
  • Post debits/credits
  • Produce invoices
  • Manage payroll
  • Maintaining and balancing ledgers

What is an Accountant?

An accountant can also be considered a bookkeeper, but not the other way around. The main function of an accounting role is keeping and interpreting financial data. Accountants can work in-house, for a particular company or as part of a firm, or an outsourced business services.

An accountant is responsible for:

  • Analyzing and verifying financial data
  • Generating reports
  • Auditing
  • Financial Reporting
  • Preparing and filing tax returns
  • Advising business owner on impact of financial decisions

CPA

A CPA is a certified public accountant or an individual that has passed the CPA exam and is licensed by the state they work in. An accountant can be a CPA, but not all accountants are CPAs.

Outsourcing Accounting and Bookkeeping

In summary, bookkeepers record financial data and accountants analyze that data, guiding business owners on how to be as profitable  Both roles are essential for business. There are many reasons to outsource your accounting and bookkeeping but the most important one is doing so will save you time and money! 

Greenlight Financial has a dedicated team of experts in bookkeeping and accounting that will guide and support you every step of the way. Worry less about your books and focus on building your business with our outsourced accounting services. Contact us today for a free quote.

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