Many business owners don’t have enough time to deal with their financial records, and keeping your financial transactions up-to-date is not something you may like doing. But, of course, it doesn’t hurt to admit it – because many owners have trouble with numbers and don’t want to be bothered recording everything or keeping everything updated when it comes to their finances.
But someone has to do it – and now the bigger question is, who? If you’ve decided that you need professional expertise in your finances, would it be more feasible to outsource your needs to an accountant, or would it be better to get a bookkeeper? These two professionals can provide you with an array of services, but which professional is an ideal fit for your needs? Here’s how to know if you require the services of an accountant or bookkeeper: your guide.
What to expect from an accountant
A bookkeeper can take charge of recording your daily financial transactions, whilst an accountant can take control of verifying this data and analysing it. In other words, accountants can evaluate the numbers and ensure that these numbers match. Accountants can also figure out the big picture (whilst bookkeepers are focused on the small details), and they can provide you with strategic and tactical advice.
Alongside this, accountants can come up with critical documents and reports such as profit and loss reports/statements, and they can file your business and personal taxes. Another thing an accountant can do is play the role of an outsourced CFO or chief financial officer for your business.
What to expect from a bookkeeper
Bookkeepers, as mentioned, can perform daily tasks like recording transactions, but they can also take care of your payroll and send out your invoices before the deadline. In addition, they can follow up on payments, pay your bills, and track your expenses (and make sure that all outgoing transactions are duly and correctly recorded) using your system or other software.
Many bookkeepers or bookkeeping services begin with entry-level assignments, with their capabilities and responsibilities growing over time.
Which one should you choose?
The thing is, there is no correct answer to this, but you have to analyse exactly what you need to help your business grow and thrive, as the experienced central London accountants and bookkeepers from GSM & Co suggest. Of course, your answer will depend on different factors, such as whether or not you need to look after a large inventory or maintain a few major assets. It can also depend on your employee number. If your business or organisation is more complex – meaning you have more employees or a larger turnover – it’s more important to ensure that you have a bookkeeper backed by a skilled accountant.
How to choose
Whether you decide to outsource to a bookkeeper or an accountant, you should find someone whom you can relate to and trust and who can explain what you need to understand in laymen’s terms rather than accounting or bookkeeping jargon.
Here’s another tip: make your decision as early as possible rather than when it’s too late – when you take on either an accountant or bookkeeper early on, you can make a better choice than when you have to settle and compromise if you already have an issue to fix.
