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![]() ![]() There’s also a lower risk of making mistakes or getting the calculation wrong. Hiring an accountant to take care of your taxes for you eliminates stress and enables you to devote your time to the core elements of running your business. It’s hugely beneficial to have your books in order as the deadline looms so that your accountant can analyse the data and work out how much tax you have to pay. ![]() For many individuals and business owners, getting ready for tax deadlines can be stressful. Whether you’re self-employed and you work alone, or you have a business that employs hundreds of people, an accountant can provide you with an array of services. Once you have financial information, it’s wise to use this data to drive your business forward. Hiring a bookkeeper will ensure that your books are in order from day one. If you don’t have a firm grip on your finances, there’s every chance that you could encounter unexpected obstacles or run into cash flow issues. To stay afloat and achieve goals and objectives, you have to turn over profits. In business, there’s nothing more crucial than making money. The benefits of employing bookkeepers and accountants An accountant has the skills to use the data provided by bookkeepers to benefit your business and provide you with a spectrum of services, which may include completing tax returns and offering advice about lowering expenses and maximising profits. When you hire an accountant, you expect more than well-presented, well-organised books. Bookkeepers essentially prepare the information and lay the foundations for accountants to take the next step. They can create reports, offer advice and recommendations, prepare tax returns and provide a consulting service, whereas bookkeeping is concerned primarily with recording data. Accountants have experience in bookkeeping, but they have a range of other additional skills, which enables them to analyse, evaluate and interpret financial data. The main differences between bookkeeping and accountingĪccounting is a much broader field than bookkeeping. Likewise, accountants are sometimes involved in looking after the accounts, as well as analysing the information and data provided by a client.īookkeepers and accountants both have skills that enable them to work with figures, but accountants have more advanced training and additional qualifications that enable them to offer a more diverse range of services. Many businesses employ a bookkeeper who tends to do more than simply record payments and update the books. In some cases, the line between bookkeeping and accounting may become blurred. While both deal with financial transactions and numbers, there are differences. To an untrained eye, it may seem like bookkeeping and accounting are very similar. The similarities between bookkeeping and accounting In this case, an accountant will use financial records and accounts to work out how much the client owes in tax, prepare and fill in the return, and arrange for payment to be made on time. Accountants can provide tailored advice based on a client’s finances, and they can also provide services such as preparing and filing tax returns. Accountants take this data, and use their expertise and skills to create reports and communications that provide the client with accurate information about their financial status. What is accounting?Īccounting involves using the information provided by bookkeepers to analyse, evaluate, summarise and interpret the financial situation of an individual or a business. The principal objective of bookkeeping is to keep a record of transactions in a logical, organised manner. Bookkeepers are responsible for looking after the books and preparing information for accountants. If you have a bookkeeper working at your business, for example, they will note down transactions on a daily or weekly basis to ensure you have a chronological record of incoming and outgoing payments. What is bookkeeping?īookkeeping is predominantly concerned with recording financial transactions and ensuring information is up to date. This guide will explore the main differences and provide you with all the information you need about bookkeeping vs accounting. ![]() There are key differences between bookkeepers and accountants. Bookkeeping and accounting are both crucial business functions, but they are not the same. ![]()
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