The Relationship Between Bookkeeping & Accounting

BOOKKEEPING & ACCOUNTING Work with financial data. The record keeping process of tracking your finances. The compiling and analyzing of account information. Process payroll. Have basic accounting knowledge. Record receipts, purchases, and payments. Invoice customers. Balance the general ledger. Bookkeepers Generate financial statements and reports. Analyze the cost of operations. File income tax returns. Accountants Advise business owners. Together, accounting and bookkeeping can help you better understand your business through financial sickness and health. You need a bookkeeper when you could use help gathering and recording financial information. You need an accountant when you need to make sense of your financial information. Marrying the two can give your business financial happiness. Bookkeeping Accounting Despite their differences, bookkeepers and accountants do have things in common. Bookkeeping is the foundation of your finances. Accounting takes care of higher level processing.