Both accounting and bookkeeping play an important financial role in business, there is a difference between the two. Bookkeeping is a direct record of all purchases and sales your business conducts, while accounting is a subjective look at what that data means for your business and cash flow strategies. An accountant can be considered a bookkeeper, but a bookkeeper can’t be an accountant without proper certification.
Learn more about the differences between accounting and bookkeeping below.
As a small business owner, you have many responsibilities to juggle. It can be tempting to remove yourself from your business’s finances just to take something off your plate – especially if bookkeeping and accounting aren’t your strong suits. However, you should stay involved in your business’s finances.
If you do hire someone to help with finances, should you audit your bookkeeper? The short answer is yes. Theoretically, if you keep yourself involved in your bookkeeper’s processes, you should be fully aware of the state of your finances, but it’s always a good idea conduct random audits to ensure all of your books are balanced and your bookkeeper is following proper protocol.
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