Bookkeeping and accounting are both crucial to the optimal running of a business. However, while they may seem similar and can sometimes be performed by the same person, they are different processes. The guide below explains what each entails so you can determine what assistance your business needs.

Bookkeeping

Bookkeepers collect and organize financial transactions for your business. This includes identifying, sorting, and recording expenses related to supplies, employee pay, and travel.

They also monitor profits to give you a current look at your overall financial state. Having this accurate reflection of your business’s current balance prevents overspending. These professionals can also complete payroll.

Additionally, saving supporting documentation related to both your operating costs and your earnings helps with business tax preparation—and ensures you can back up your claims and deductions in case of an IRS audit.

Accounting

Accountants take bookkeeping data and compile it into financial reports about income trends, expenses versus profits, and the overall viability of your business. They also offer projections based on past data and provide relevant advice. For example, they may suggest areas where you can cut costs or if you have seasonal peaks that you can capitalize on. 

They’re able to suggest shifting priorities and whether or not a loan would be beneficial. Their job often extends to loan matters—making sure loans are consolidated or paid.

They can also complete tax returns on your business’s behalf, helping you find any qualifying deductions.

Usually, accounting requires more education and training than bookkeeping—with individuals expected to complete a bachelor’s degree and work towards additional certifications.

Whether you need bookkeeping or accounting services for your business, Burch & Associates in Lincoln, NE, has the experienced, dedicated team to help. With Enrolled Agents who specialize in tax preparation, they offer 24/7 online assistance and competitive rates. Learn more about what they do online. Call (402) 483-4791 to arrange a consultation. Read reviews from satisfied clients on Google.