A very general and common misconception about bookkeeping and accounting is probably that they are one and the same. Even though it may seem that way to someone who is not a professional as both deals with finance, however, the said statement is not true at all. For a small business bookkeeper, it is very important to understand the difference between the two. And if you find that you need a helping hand to take care of it all then you can use a virtual bookkeeper.
Basic difference between Bookkeeping and Accounting
Bookkeeping is usually related to extraction, recording, reconciliations, measuring and reporting of financial data in an organized form. Simply the objective of bookkeeping is to keep all the records of financial transactions in a systematic manner. Ultimately, it is always beneficial to have your books prepared by an expert because it is easy as a small business owner to get bogged down by the details and miss a small, yet important step.
Accounting, on the other hand, requires more advanced skills as it plays a very vital role while taking major business decisions. Accounting is a process of recording, maintaining, summarizing, understanding and analyzing the financial data. Bookkeeping, in a way, can be considered as the first step of Accounting.
Interrelation between Bookkeeping and Accounting
As we stated earlier, Bookkeeping can be seen as the first step of Accounting. Both processes are interrelated and go hand in hand, let’s take an example to understand better. If a small business bookkeeper isn’t recording the raw data properly in a systematic manner then even the best of the Accountants will find it hard to analyze that information. Similarly, if a virtual bookkeeper or an online bookkeeping service is properly recording the data, it will be of no use if an Accountant doesn’t analyze and use the data to help a small business owner make business decision. Therefore, one can’t work without the other.
Contact a Virtual Bookkeeper in La Veta, CO Today!
For any small businesses in or near La Veta, CO needing bookkeeping services, AMR Bookkeeping Services can be the best option. With years of experience of working with small businesses at an affordable price, AMR Bookkeeping Services can be your best bet. Contact AMR Bookkeeping today to get started!
