When it comes to owning and running a successful business, there are steps that business owners are going to want to take. Hiring the right people to help keep finances in check is one of them. Both bookkeepers and accountants are essential and vital to the success of your business. But before you go thinking that they are the same thing, we would like to point out some key differences between the two. Mark Dicus & Company is here to talk about the key differences between accountants and bookkeepers.
The Role of a Bookkeeper for a Small Business
There are many ways that a bookkeeper can help keep your business on track for success. Here are some of the major responsibilities of a bookkeeper:
– Recording: Every single transaction that your business makes needs to be properly recorded. The bookkeeper will record these transactions in the general ledger which will include debits, credits, and balances to show your financial records.
– Charting Accounts: Another big part that bookkeepers play is in keeping a chart of accounts. This will ensure that the business doesn’t have too few or too many accounts. This needs to be done precisely so that there aren’t large issues down the road. Problems with charting accounts tend to snowball as time goes on.
– Reconciling Bank Statements: A bookkeeper will make sure that the transactions are matching up with the bank statements so that it all mirrors the transactions of the company. This is done on a monthly basis.
– Financial Reports: Important financial reports will be prepared by the bookkeeper as well. This includes profit and loss statements, balance sheets and more.
– Accounts Receivable & Payable: Both accounts receivable and payable will be handled as part of bookkeeping too. Accounts receivable includes things like sending out invoices, ensure customer payment, tracking down overdue payments and more. Accounts payable includes ensuring that the vendors all get paid accordingly.
The Role of a Small Business Accountant
An accountant will have completely different responsibilities.
– Tax Returns: You can rely on your accountant to both prepare and file your tax returns. This is a big job as they work to minimize your tax responsibility, make sure everything is filed correctly and work to lessen the chances of getting audited.
– Financial Advice: You can also lean on your accountant to give you some sound financial advice. This is especially true as you are setting up your business structure. They can also help you with financial forecasts and offer financial planning tips.
– Help with Loans: Your accountant knows your business’s finances inside and out. This can be helpful when lenders have questions about your financial position when negotiating loan details.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you own a small business, you need to turn to Mark Dicus & Company for all your bookkeeping and accounting needs. We will help you achieve the success you’re looking for. Call us today!