When your business needs help tracking cash flow or making important financial decisions, a professional bookkeeper or accountant can provide reliable support. However, while both of these professions are often confused—or thought to be the same—the services they provide vary. To help you determine which specialist you should hire, here is a brief look at the differences between accounting and bookkeeping services.

What Does a Bookkeeper Do?

Bookkeepers regularly work with business clients to manage and oversee daily finances. Often using professional software, they will record transactions and receipts to process money coming in and out of the company. With all accounts payable and receivable recorded, they will balance each side to ensure the company’s profits and losses are accurately recorded.

These experts can also use their software and number-crunching knowledge to provide many other important bookkeeping services. For example, they may help process payroll to ensure employees are paid or distribute invoices to make sure all payments are received. They might also use daily, weekly, and monthly reports to illustrate patterns in the company’s economic growth.

What Does an Accountant Do?

Accountants work with a business on a wider scale. While they may only meet with their clients on a periodic schedule, they can assist with matters regarding the company’s overall fiscal aptitude and budget.

Often, accountants will process the information collected and organized by the bookkeeper. Using this data, they can help with business tax preparation and financial reporting for investors. A specialized class of accountant, known as a CPA (or Certified Public Accountant), is also authorized to provide IRS representation. This representation may be useful if you are trying to resolve matters with the IRS or have to comply with an audit.

After getting to know the patterns and needs of your organization, an accountant may also offer insight on how to improve your overall financial position. For example, they may recommend deduction strategies that allow you to minimize your tax liability. They can also assess income generation patterns to identify the best opportunities for growth—such as when it could be most effective to open a new location, hire more staff, or introduce a new service.

Serving individual and commercial clients throughout Ashley County, Clark W. Terrell, CPA is an exceptional resource for managing business finances. As a CPA, Terrell is equipped to assist with all types of fiscal concerns—including business tax preparation and financial reporting. He can also provide dependable bookkeeping services—such as account balancing and payroll services. To learn how this Crossett, AR, CPA can assist your company, visit his firm online or call (870) 364-5006.