Unlike bookkeeping, which is all about crunching numbers, accounting is more subjective. Bookkeeping refers to handling the day-to-day tasks of recording financial transactions. Simply put, bookkeeping is more transactional and administrative, concerned with recording financial transactions. Accounting is more subjective, giving you insights into your business’s financial health based on bookkeeping information. If you’re ready to take bookkeeping off your plate and delegate this task to someone else, it can be hard to know where to look.

Intuit accepts no responsibility for the accuracy, legality, or content on these sites. Trying to juggle too many things at once only works to put your organization in danger. If you’re looking to convert from manual bookkeeping to digital, consider a staggered approach. Overhauling all at once can be overwhelming and discouraging, so it’s best to take it slow and make meaningful and intentional shifts. For example, a car manufacturer aims to save two percent on car production costs over the course of the next fiscal year. Managers can hire an accountant to know how much it costs to produce each vehicle.

What is the difference between accounting and bookkeeping?

An accountant, on the other hand, will take your bookkeeper’s nuanced records and translate them into tax preparation, and also offer advice about the health of your business and future planning. Bookkeeping is broadly defined as the recording of financial transactions for a business. It’s a key component of the accounting process and can be done as frequently as daily, weekly or monthly. Accurate bookkeeping is vital to filing tax returns and having the financial insights to make sound business decisions.

A bookkeeper is skilled at keeping documents and tracks a wide net of financial information. Therefore, those who do not like math, get confused easily when making simple calculations, or are generally opposed to number crunching should not apply. Both bookkeepers and accountants need to be comfortable accounting vs bookkeeping working with numbers all day. Bookkeepers especially should be able to spot issues with daily expenses and make sure all the data points are tracked correctly. If you’re like most modern business owners, odds are you didn’t become one so that you could practice professional-level bookkeeping.

The main differences between a bookkeeper and an accountant

Deciding between bookkeeping vs. accounting can be difficult because of the intersecting responsibilities of a bookkeeper and an accountant. Many small and midsize business (SMB) leaders find it challenging to decide who can meet their financial needs. Accounting is the systematic process of recording, measuring and communicating information about the financial transaction taking place in a business. Accounting helps in determining the financial position of a firm and present the same to stakeholders. Accurate bookkeeping is critical for business as it gives a piece of reliable information on the performance of a company. Unlike bookkeepers, there are a range of different professional certifications that accountants may acquire.