It may be very clear to you when the time comes, that you need to hire someone to handle financial transactions and recording for your company. But it can be harder to decide whether to hire a small business bookkeeper in La Veta, CO or an accountant. Depending on your business needs, there are pros and cons to each. Here’s a quick look at the difference between a bookkeeper and an accountant.
What Does a Bookkeeper Do?
Bookkeepers– in person or virtual — document and record activities related to money, whether that’s money coming in or money going out. Bookkeeping is done on a ledger, which used to be an actual record book but is now typically a software program. When payments are made and received, the virtual bookkeeper in La Veta, CO enters these credits and debits in the ledger. Additional roles can include preparing and sending invoices, running payroll, and reconciling bank statements. Bookkeepers also prepare financial reports like balance sheets, income statements, and statements of cash flow; these are often used to assess how a business is performing and may be used to make business decisions and apply for loans. Bookkeepers generally have on-the-job training and may have completed a post-secondary education program on bookkeeping.
What Does an Accountant Do?
Accountants use the information prepared by bookkeepers for advanced analysis and decision-making. An accountant’s duties include making adjusted entries into the ledger, drafting financial statements, and preparing tax returns. Accountants also work with business leaders or owners to share their awareness of financial risk and opportunity based on internal and external factors. Accountants generally have a bachelor’s degree in accounting; often, they also hold additional professional credentials. CPAs are accountants with advanced training and experience, and they’ve passed the CPA exam, too.
Contact AMR Bookkeeping Services Today!
If you have a good handle on your small business’s current position and long-term strategy and you really need someone to free up your time from paying bills and recording payments, you may need a small business bookkeeper in La Veta, CO. If your business really isn’t that small or you’re considering big changes like an expansion, you may need an accountant who can break down for you the risks and opportunities you face. Contact AMR Bookkeeping Services today!
