No matter what industry you’re in, keeping accurate records and understanding the company’s financial situation are essential to your success. A reliable financial professional can help manage your money with bookkeeping and accounting services that allow you to concentrate daily operations and growth. While many firms offer both services, there are some important differences every business owner should understand before hiring a bookkeeper or an accountant.

Bookkeeping

A bookkeeper records the company’s daily transactions to ensure the lists of income and expenses are up-to-date. In addition to maintaining the ledger, a bookkeeper also produces invoices and ensures the business’s bills are paid; some might manage the company’s payroll as well. Bookkeeping professionals also develop organizational systems to help businesses monitor transactions with tax ramifications, so the data is easy to access when it’s time to file their returns.

Accounting

Unlike bookkeeping, which concentrates on a company’s daily activities, accounting requires a more comprehensive, long-range view. An accountant’s role is to help create a portrait of the company’s financial health and use the information to guide future decisions. They develop financial reports to track cash flow and revenue expectations, as these documents are often required for regulatory purposes and interactions with lending institutions. With the help of an accountant, you’ll have a better understanding of the company’s current financial status and growth potential, which can be instrumental to your long-term planning. Accountants will also help develop tax strategies to limit your liability and maximize deductions.

The financial specialists at Daren Katayama CPA LLC provide high-quality bookkeeping and accounting services to companies throughout Hawaii. These Kailua Kona professionals have built their reputation on providing personalized attention and treating clients like family. Visit their website for an overview of their financial services, and call (808) 329-6635 to make an appointment with a member of their team today.