If your business has recently expanded and you’re having a hard time keeping track of income and expenses, you can mitigate your stress by hiring an accounting firm. If you’re unsure what bookkeeping and accounting services include and how will you choose the right firm, use the following information to help you get your finances in order.

A Brief Guide to Bookkeeping & Accounting 

What’s the difference between bookkeeping and accounting?

Bookkeeping is focused on daily financial tasks such as tracking and paying bills and managing customer invoices and payroll. Bookkeepers typically create a general ledger using accounting software.

Accounting usually follows bookkeeping and involves reviewing the general ledger and completing payroll, sales, and property tax returns. Accountants will also create financial reports that condense record-keeping data. An accountant must have an accounting degree and be a Certified Public Accountant (CPA).

How do I know whether I need a bookkeeper or an accountant?

In most cases, you’ll need both. Because your accountant creates essential financial documents and files your taxes, they’ll have a thorough, big-picture understanding of your company’s financial circumstances and be able to offer you advice when necessary. A bookkeeper’s work is rooted in day-to-day tasks like keeping on top of income and expenses that keep the business running. 

Your bookkeeper might keep track of your company’s credit card expenses while your accountant will advise you on whether to take out a line of credit when introducing a new product. Both services are essential and work hand-in-hand.

Why should I outsource my financial services? 

Outsourcing these tasks will keep you from needing to hire a full-time, salaried bookkeeper or accountant. Because office space can be expensive, you won't have to carve out additional room for onsite employees if you decide to outsource.

Your bookkeeper and/or accountant will likely be able to do a lot of their work remotely, using software that gives them access to pertinent information while providing you access to their ongoing work.

What do I look for when hiring a bookkeeper and/or accountant?

Ask business associates for recommendations and come up with a list of questions to ask firms during the hiring process. Ask them about their previous experience to confirm that they’ve handled other businesses like yours. Inquire about what accounting systems they use to determine whether or not it’s compatible with yours and what changes might be needed.

Keep your finances in order with Tostrud & Temp, S C in La Crosse, WI. For over 35 years, this firm has provided customers throughout Wisconsin, Minnesota, and Wyoming with superior financial services. Their experienced CPAs provide clients with personal and business tax preparation, as well as auditing and financial analysis. They treat their clients like family and approach each one with a personalized plan based on their needs. For an experienced and affordable accounting firm to bolster your business, call (608) 784-8060. Learn more online.