Accountant vs. Bookkeeper: What is the difference?

“NEGATIVE SALES? Not possible!”

Of course, this was an accounting error...one you want to avoid, but how?

>>Me: “I’m having a hard time understanding what your margins are. Do you know why your business is showing negative sales in the month of August?”

>>Client: “I have no idea… How is that possible?”

This was the conversation with a new client recently as I was helping them understand their sales by channel.

Frequently, I come across business owners who say, “I JUST need a bookkeeper.”

It's crucial to have a clear understanding of what to expect from your bookkeeper.

Here's a brief summary of what a bookkeeper and an accountant bring to your business:

A bookkeeper is a record KEEPER (no formal education required):

• Responsible for recording day-to-day financial transactions.
• Manages accounts payable and receivable

An accountant is an INTERPRETER of financial data (usually has a BA or MA degree in Accounting):

• Prepares financial statements ensuring their compliance with financial regulations.
• Offers financial insights that help the business grow.

When should you consider having an accountant look over your finances?

• When you want accurate records in compliance with accounting rules and regulations.
• When you need data-driven guidance on big decisions through financial modeling.
• When you need strategic financial guidance to help your business grow.

Since I hear stories from clients like the one at the beginning of the post, I've introduced two new programs to support businesses' smooth growth:

1️⃣ Bookkeeping + CPA Review: Ideal for businesses lacking a bookkeeper or seeking a reliable partnership.

💡This combined package offers expert bookkeeping + ongoing oversight and guidance from a CPA.

2️⃣ CPA Review: For businesses with existing bookkeepers.

💡 This service provides a thorough review of your financial records by a CPA, checking for accuracy and compliance.

Book a free 30-minute financial clarity call to understand your financial challenges and determine the best solution for your business.