Accounting vs. Bookkeeping
With tax season in full swing, and a two-week deadline to filing all the right paperwork to the IRS, bookkeeping, payroll, financial oversight and many other accounting terms are all the rage these days.
That’s why your virtual bookkeeping company, Your Bookkeeping Department, is here to help you understand the difference between accounting vs. bookkeeping. Of course, both professions share common goals and many bookkeepers are actually accountants and vice-versa, but there are differences in terms of responsibilities. If you own a small business or practice, it’s crucial you understand the distinctiveness between the two since besides meeting your exact needs, it can also save you money.
So what are some of the activities related to virtual bookkeeping?
Think daily transactions, from gathering and recording purchases and receipts to sales and payments. A virtual bookkeeper uses multi ledger journals to keep track of all the entries. With small businesses and medical practices, there can be many day-to-day purchases from office supplies to membership fees to impromptu lunches for conference meetings gone too long and so much more. Virtual bookkeeping specialists use a variety of software, depending on needs and preferences. Examples include Quickbooks, CheckMark, Peachtree, Quicken and Bookkeeper. A virtual bookkeeper ensures their total debits are aligned with their total credits. As you can see, one of the major components of a bookkeeper is to maintain a general ledger. Depending on the size of the business, posting can be done daily, weekly or monthly.An accountant looks at those entries, interprets them and turns that data into info. In other words, accountants produce financial models that assist in advancing the business. They generate reports, analyze the entire account (big picture), perform audits, prepare financial records including tax returns, income statements and balance sheets. The analysis can therefore help the accountant give the small business owner advice on how to grow his or her business, present business trends that can directly impact their business and manage cash flow. Both, virtual bookkeepers and accountants, have to comply with federal, state and local financial legal requirements so they have to stay on top of new legislations, policies and regulations.
What about education in accounting vs. bookkeeping?
Accounting vs. Bookkeeping: a bookkeeper, typically, has about two to four years of experience or an associate’s degree while an accountant must have a bachelor’s degree in accounting or finance degree. Accountants are also required to have extra professional certifications such as to become a certified public accountant. When you choose to work with Your Miami Beach Bookkeeping Department, you kind of get the best of both worlds with Manal Oliver. She can act as your virtual bookkeeper, but a degree in accounting from Franklin University in Colombus, Ohio certainly comes in handy.
Besides three decades of experience in the financial field, Manal is involved in a variety of professional and Miami Beach community organizations.
Whether you have five employees or forty, virtual bookkeeping can make a big the difference in your bottom line.