By managing through numbers and metrics, companies are able to maximize income, understand their cash position, and improve visibility into the future performance of the business.Industry newcomers tend to use the terms “bookkeeper” and “accountant” interchangeably, but there are a few important distinctions between the two.īookkeeping focuses on managing financial books by documenting transactions, managing accounts, and recording financial data. TGG provides timely, actionable information to management teams through detailed measurement, reporting and analysis of financial metrics and results. As a fully scalable accounting and finance consulting team, we work as a natural extension of our client’s business, tailoring our services to fit their specific needs. Our mission is to improve business owners’ lives through excellent financial management. TGG is a leading provider of outsourced accounting and business advisory services for small to mid-size businesses across industries. Accounting is more subjective, giving you insights into your business’s financial health based on bookkeeping information. According to the Association of Certified Fraud Examiners report the average size of the fraud was $200,000 per occurrence for businesses with fewer than 100 employees.Ĭompared to accounting, bookkeeping is more transactional and administrative, with a strong focus on recording financial transactions. One thing that’s certain, is that you need to have oversight of your accounting department in order to significantly decrease or completely eliminate your risk of fraud. Keep in mind, that the more you grow, the more accounting support you will need to manage the increase in the number of transactions. The answer to this question is that it depends on the needs of your business and how you plan to grow and scale. Only CPAs, tax attorneys, and “Enrolled Agents” represent a taxpayer in audits and investigations with the IRS. Accountants can also pursue Certified Public Accountant (CPA) and or Certified Management Accountant (CMA) licenses.Ī bookkeeper may pay your taxes for you, but they do not give tax advice or communicate with the IRS.Īccountants prepare detailed financial statements, perform audits, and may prepare reports for tax purposes, but an accountant has no standing with the IRS. Most bookkeeping qualifications are at a diploma or certificate level.Īccountants must have a degree in Accounting or Finance to call themselves an Accountant. Therefore, it is so important that transactions are entered correctly so key decisions can be made based off accurate information.īookkeepers are not required to have any formal education or degree. A bookkeeper is recording the transactions so it’s up to the accountant to review the information and interpret it to make key decisions that will benefit the business. The work of an accountant will overlap with the job responsibilities of a bookkeeper. In general, accountants are more proactive in helping you boost the cash flow of your business while bookkeepers are more reactive and focused on accurately recording transactions. At TGG, our accountants are focused on growing your business and most importantly, helping you achieve your personal and professional goals. Strategize on ways to reduce costs, enhance revenues, and improve profits.Assess financial operations, identify risks and challenges, and make best-practices recommendations to management.Organize, analyze, and maintain financial records.Examine financial statements to ensure accuracy.Produce reports, like balance sheets, income statements, and totals by account.Put costs (debits) and income (credits) into the software.Receive and record cash, checks, and vouchers.Use bookkeeping software, spreadsheets, and databases.Job Responsibilities according to the Bureau of Labor Statistics We’re breaking down the key differences between the two, so you have a better understanding of what they mean and how they fit into your business. While both deal with the finances of small and mid-sized businesses, they both have very different meanings and provide contrasting financial information. The terms Bookkeeping and Accounting are often used interchangeably.
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