A bookkeeper’s job is to maintain complete records of all money that has come into and gone out of the business. What does a bookkeeper do?īookkeeping, in the traditional sense, has been around as long as there has been commerce – since around 2600 B.C. Key takeaway: Bookkeepers handle the day-to-day tasks of recording financial transactions, while accountants provide insight and analysis of that data and generate accounting reports. “Accounting is designed to turn data into information.” “Bookkeeping is designed to generate data about the activities of an organization,” said D’Arcy Becker, chair and professor in the University of Wisconsin Whitewater Department of Accounting. Accounting is more subjective, providing business owners with financial insights based on information gleaned from their bookkeeping data. accountingīookkeeping is a transactional and administrative role that handles the day-to-day tasks of recording financial transactions, including purchases, receipts, sales and payments. Here’s what you need to know to decide which is best for you. But do you need a bookkeeper or an accountant? The terms are sometimes used interchangeably, and there can be some overlap in what they do, but there are distinct differences. When your small business’s bookkeeping and accounting tasks are too much to handle by yourself, it’s time to hire help. Your financial data must be current and accurate so you have the tools you need to make sound business decisions and implement healthy cash flow strategies.Īs your business grows to include more customers, vendors, and employees, keeping track of your finances on your own becomes more challenging. Staying on top of your finances is a key part of being a successful small business owner.
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