Bookkeeping vs Accounting

As a business grows, it will begin to require outsourcing assistance for the likes of the daily accounting of the business.

But that brings with it the question of whether you need a bookkeeper or an accountant. And what is the difference?

Bookkeeping is an administrative role which helps your business handle the day to day finances of the business. This covers everything from purchases, receipts and sales to payments and payroll. Accounting on the other hand is more about providing financial reports and information on the companies finances both for the business to use and for submitting TAX returns.
In short, bookkeeping is all about generating the data. Accounting is all about turning that data into final information.

For as long as there has been trade, there has been bookkeeping. Being able to keep records of all the money that is coming and going is essential for a business to operate. Bookkeepers have to complete daily records and transactions that are consistent and easy to read. It is this data that accountants then use to produce final reports.

A bookkeeper will usually:

• Record financial transactions
• Record debits and credits
• Produce invoices
• Manage payroll
• Maintain balance sheets, ledgers etc

Why a bookkeeper is so important for businesses

Bookkeepers can help you to track and organise your businesses financial documents, compile records and even help you save money. Accountants may produce final reports and detailed analyses of your business transactions, bookkeeping can help break down the information into more clear and relevant information.

Are bookkeepers and accountants the same?

No is the simple answer. They are different services though they are understandably interlinked.

When should I hire a bookkeeper?

If you are spending too much of your time on your own bookkeeping, that is the time to consider outsourcing your bookkeeping.
There is no question that bar owners, restaurant managers and so many other businesses across the UK can indeed manage their own company books if they want to. But if you are looking for them to be completed to the highest standards, and you are wanting them to be processed efficiently whilst providing invaluable information into the running of your business that can lead to actionable next steps, then seeking an outsourced bookkeeping company like ourselves may just be the next best step to take.

Running a business is not easy. But at Momentum Bookkeeping, our goal is to make it easier for you.

Bookkeeping is what we do and we can focus 100% of our time towards it. If your bookkeeping has been flagged for errors in the past then now may just be the time that you should consider hiring a bookkeeper for your business.