310.844.7614

License #1050831
DWJ Printing
  • Solutions
  • Custom Promotional Products
  • About Us
  • Blog
  • Contact

Do I need an accountant or a bookkeeper?

7/31/2016

5 Comments

 
Picture
Audits, payroll, taxes, and more are all part of running a business.  Some business owners initially manage their company finances themselves while others seek the services of an accountant or bookkeeper.  Either way, the decision to consult with an accountant is inevitable. 

Do you need an accountant?  How will an accountant help your business grow?  How do you decide to work with an accountant?

The roles of an accountant vs bookkeeper
A bookkeeper works with accuracy and efficiency on a company’s payroll, invoices, creditors and debtors, general ledgers, and other financial activity.  Bookkeepers have a basic level of financial education although their role within a business is often irreplaceable.

In contrast to the bookkeeper, the accountant is more specialized in finances and tax since they are required to have both a financial degree and experience.  An accountant goes beyond the bookkeeping understanding of finances by providing businesses with key performance indicators (KPI’s), balance sheets, statements on profits and losses, cash flow, and balance sheet.  This information gives a business owner a broader, deeper understanding of company finances and growth.

How an accountant can help your business
Besides assisting you with tax, audits, and financial tracking, accountants can assist you develop a business plan that is professional, realistic, and a higher chance for success.  This business plan will be based on your current finances and goals.

As a business owner,you will need to decide on the type of business you would like to be registered as, a sole proprietor, corporations, etc.  An accountant will be able to explain each option to you and recommend the option best suited to your style of business and business needs.

Deciding to contact an accountant
When it comes to hiring an accountant for assistance with your business finances, a cost benefit analysis can help make this important decision. As a business owner, you should look objectively at the cost of hiring an accountant versus you or one of your current staff taking over the company books.  Is the cost versus your time spent worth it?

As a business owner what are your strengths?  If you enjoy the process of keeping track of company finances and should these finances be manageable, it may be best not to hire an accountant for now.  However, if basic bookkeeping is not your strength and your time is better used elsewhere that will generate more profitability; an accountant will be a benefit to your company.

Hire, consult or outsource?
Once you have decided your company will benefit from the skills of an accountant and/or bookkeeper, your next decision may be between hiring an in-house accountant, consulting with an accountant for a certain period of time, or outsourcing.

When hiring an accountant ask yourself if your business finances can afford another salary on your payroll.  Should you prefer to consult or outsource you would need to obtain quotes from an accountant firm on the relevant costs involved, scope of work covered, and time duration. 

5 Comments
Kylie Dotts link
8/31/2017 09:25:12 am

It makes sense that a cost benefit analysis would be a helpful tool to have when hiring someone to take care of your general bookkeeping and financing. Knowing what it is that you are going to be earning and paying would be a good way to form a plan of how to move forward. Making and trying to reach goals is important to keep progress a reality.

Reply
Kenneth Gladman link
5/7/2018 04:01:14 pm

Lets be honest, nobody wants to perform audits and do their own taxes. This is why so many are outsourcing their accounting. It can not only save you money but also save you a lot of time and hassle.

Reply
Bethany Birchridge link
7/11/2018 08:20:54 am

Thanks for explaining that bookkeepers work on the accuracy and efficiency of a company's financial activities, while an accountant focuses more on taxes. My friend wants to set up a business after he graduates college, so I think he'd like to learn about the benefits of hiring a bookkeeper. Where can he learn more about bookkeepers?

Reply
Ridley link
7/12/2018 10:10:28 am

It's interesting to learn more about bookkeepers and accountants. I like how you said that while the bookkeeper has a basic knowledge of finances and things, they're still irreplaceable. If I had a business, I'd want both of these experts to help me.

Reply
Mark Murphy link
8/3/2018 09:47:36 am

I never knew that an accountant has more training in business strategy, and because of that, you would want to hire an accountant if you want help with your business finances. My neighbor was talking to me about some possible fraud that might have been happening in his company, but he doesn't know how his company would be able to confirm that. I will be sure to tell him that an accountant would be a big benefit in that situation!

Reply



Leave a Reply.

    Categories

    All
    Business Management
    Marketing
    Signage
    Software

    Archives

    April 2020
    March 2020
    December 2016
    October 2016
    September 2016
    July 2016
    June 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013

    RSS Feed

Powered by Create your own unique website with customizable templates.