Accounting vs. Bookkeeping

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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.

17 Responses
  1. Thanks for helping me understand that an accountant would be able to keep and interpret financial data. I just wanted to know how important they are for businesses. It seems that they are vital to ensure that your money will move seamlessly and keep you from being short in budget and finances.

  2. I found it interesting when you talked about financial professionals and their different roles in a business. Recently, one of my friends mentioned he’s interested in starting a business. I believe any big or small company could benefit from working with a financial expert, so I’ll be sure to suggest it to my friend. Thanks for the information on bookkeepers and their main tasks.

  3. I liked it when you shared that a bookkeeper is an individual who keeps a record of a business’ cash flow. This will help to make sure that all financial transactions are recorded in an organized manner. I would like to think if a company needs to hire a bookkeeping service, it should consider hiring the one that is reliable and experienced.

  4. My friend has been having issues with managing his taxes for his business. It makes sense that getting a bookkeeper might be beneficial. That seems like a good way to ensure that I put everything together properly.

  5. I never knew that an accountant can also be considered a bookkeeper, but not the other way around. My aunt wants to know more about CPA. I should share this post with her about tax and accounting so that she could have an idea of what to do.

  6. I never knew that an accountant can also be considered a bookkeeper, but not the other way around. I never thought that it would be this important to be an accountant. Thank you for the information about accountancy.

  7. It helped when you mentioned that an accounting system can help with reading and filing tax returns. My uncle mentioned to me last night that he and his workmates are planning to hire a business accountant that can help them with taxes and payroll for their business workplace and asked if I have any idea what is the best option to consider. Thanks to this informative article and I’ll be sure to tell him that he can consult an accounting service as they can answer all their inquiries.

  8. I never knew that accountants can work in-house, for a particular company or as part of a firm, or outsourced business services. I never thought that it would be like this, it is an intriguing article to read and I will also share this with my aunt. Thank you for the information about
    accounting services.

  9. It really helped when you mentioned that properly managing finances is the key to growth. One of my parent’s friends is hoping to find a reliable accounting service that can help them with payroll processing for their business and asked if I have any idea what is the best option to consider. Thank you for the information, I’ll be sure to tell him that they can consult accounting services as they can help them with their concerns.

  10. This Hey it’s such an amazing Article,
    information is not just helpful, it is awesome. It gathers everything for those who want to know about accounting and bookkeeping, I really appreciate how you have described all the detailed information in the blog post. Just going to share it on my social network.
    Thanks

  11. I like what you said there are several benefits to outsourcing your accounting and bookkeeping, the most important of which is that you will save time and money. This is a good article, my uncle is looking for info and this should help him. I wanted to thank you for your explanation about accountants.

  12. I love that you talked about how bookkeeping services can help you save time for other works. My best friend told me that he and his workmates are hoping to find a reliable service that can help them with the financial reporting of their business, he asked if I have any idea what is the best option to consider. Thank you for the information, I’ll be sure to tell him that they can consult bookkeeping services as they can answer all their inquiries.

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