As a business owner, you may feel like bookkeeping and accounting involve the same tasks. However, before you take advantage of our bookkeeping services, it’s important that you understand the differences that exist between bookkeeping and accounting, so you understand which services you’ll be receiving from us.
Bookkeeping is technically a subset of accounting and refers to the process of storing, organizing, and accumulating financial information for a business. The collection of this information through our bookkeeping services is needed because it facilitates the day-to-day operations of your business and allows for financial statements, tax returns, and other internal reports to be created.
The information organized and collected through bookkeeping should always be accurate, timely, and complete. With our bookkeeping services, you can rest assured that this will happen.
Unlike bookkeeping, accounting is much broader and may cover the design of a bookkeeping system, making sure that there are controls in place to ensure that the bookkeeping system is working well, and ultimately verifying and analyzing recorded financial information. Accounting measures the financial information of your company and reports these values to those who need them. For example, business managers, investors, and others who work directly with your business may require the accounting information you procure to get a better feel for how your business is performing and its overall financial condition.
Do you still have questions about how accounting and bookkeeping differ? At Cathy E. Parker, E.A. Bookkeeping & Tax Service, we are more than happy to help.