It does not matter whether you in the retail, service or consulting business, your company needs to find a way to manage its books. For some businesses, this means an in-house accountant or accounting department, depending on the company size. For others, it means finding a qualified bookkeeper to outsource the financial record management.
Does your business outsource its bookkeeping needs? Have you thought about it? Whether you’re on the fence or fully settled, it’s good to have a solid understanding of what outsourcing means.
So with that in mind, let’s take a look at some of the advantages and drawbacks of hiring an outside bookkeeper to manage your accounting needs!
Owning and operating a business is the job that never ends. Even when you spend every waking hour attending to your business’s needs, you may still be left with items on your to-do list.
While every business has its own unique challenges and responsibilities, there are a handful of minor tasks every business owner should do to keep their business running strong. This monthly checklist will help you assess the complete health of your business. After going through each of the items outlined below, you should have a strong understanding of what your business is doing well and what can be improved.
Fact or fiction: Accountants and Bookkeepers do the same thing
A lot of people think CPAs and bookkeepers perform the same job, but actually, there are quite a few differences between bookkeepers and accountants.
The easiest way to differentiate the two professions is to think about it like this:
You’ve heard it time and time again: “Accurate bookkeeping is necessary for business health.” This isn’t meant to come off like a scolding finger-wag. Bookkeeping is simply a foundational aspect of running a business and should be regarded as such.
Bookkeeping and accounting are inherently different, though the two practices share similar implications.
Accountants typically focus on preparing and processing statutory returns, giving advice on legal structures, and offering their expertise on general finances.
Bookkeepers, on the other hand, tend to focus on maintaining financial organization, recording and reporting on business transactions, and providing detailed statements that reflect the health of a business. Bookkeepers have been expanding the scope of their expertise to include things like developing and reviewing internal business processes and employing other technologies like document management and inventory control to improve overall business efficiency as well.
When you work with a seasoned bookkeeper who knows the ins and outs of accounting software, you’re able to hand off the financial grind over to the pro and focus on doing what you do best – running your business.
So, why should you care if your bookkeeper works with the latest accounting software technologies?