If you’re a small business owner, you may have heard of bookkeeping services before. Too often, people conflate the task of a bookkeeping service with that of an accountant. While they may lack some of the perks of a full-service accountant, a bookkeeping service can be an undeniable asset to any small business. Today, we’ll be giving you the basics of what they are and what they can do for you.
Too often, people conflate the task of a bookkeeping service with that of an accountant. Here’s what you need to know about bookkeeping services.
What is a bookkeeping service?
Like we said before, a bookkeeping service is decidedly different from an accountant. The role of an accountant is to analyze and interpret financial data. Bookkeepers, on the other hand, are merely recorders. They are trusted with the task of recording financial transactions. This can include any of the following duties:
- Using bookkeeping software for recording transactions
- Creating invoices for your customers
- Generate financial statements
- Stay on top of overdue accounts
- Reconciling bank accounts and credit cards
Bookkeeping is an ancient profession, and for good reason; maintaining proper records and staying on top of your accounts is crucial to any successful business. Another way to think of the difference between bookkeepers and accountants is that bookkeepers tell you where you stand today, whereas accounts tell you where you’re headed.
How can bookkeeping benefit my business?
Maintaining records is essential to any functioning business. But you might not immediately see the benefit of hiring a bookkeeping service. One of the great perks of having a designated bookkeeper is that they will be fluent in bookkeeping software, which has numerous benefits when compared to traditional methods. This makes the process of filing taxes far simpler, produces reports, and processes accounts with unprecedented speed and accuracy. Bookkeeping software also backs up all this data, so you won’t have to worry about its security.
You might also be wondering: if I already have an accountant, do I need a bookkeeper? While it’s true that accountants may be able to help with bookkeeping tasks, there are still perks to having a bookkeeper. They will be able to ensure that the information handed to the accountant is accurate and up to date. Your accountant may also have too much on their plate, and hiring a bookkeeper can be a great way to lend them some extra help.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim to decrease your taxes and increase your net worth through responsible, timely, and accurate record keeping. We offer our services to clients throughout the Washington, D.C., metropolitan area, including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.