The Difference Between Accounting and Bookkeeping
Keeping on top of your business finances is a must for small businesses. It is the key to a strong foundation for growth and success. You need to:
- understand the money coming in and out of your business
- pay bills on time
- get paid on time for your services/products
- meet your tax and reporting obligations
- make decisions about your future direction and investments.
These are all underpinned by sound financial management practices.
Many small business owners choose to outsource their financial activities. This frees them up to focus on other aspects of their business. The things that best suit their skills and that they enjoy doing more.
However, a common point of confusion is understanding whether you need to outsource to a bookkeeper or an accountant. The reality is that you need both, but they play different roles in your business financial management.
So here we have look at the difference between bookkeeping and accounting. And the importance of them working together to support your business finances.