You’ve started your own business and it’s starting to grow. You quickly realize you need help with your business finances. But do you hire an accountant or a bookkeeper? What’s the difference? Is there a difference?
What does a bookkeeper do?
A bookkeeper is responsible for recording your day-to-day business transactions. This includes sales, purchases, receipts, and payments. They will also process invoices, reconcile accounts, and calculate GST. The details of every business transaction is recorded in a software program like Quickbooks (for example) and will be used by your accountant at later.
What does an accountant do?
The accountant is responsible for the bigger picture. They take the data entered by a bookkeeper, verifies it, and uses the data to generate financial reports, perform audits, and generate forecasts. They are generally more expensive than a bookkeeper but are additionally qualified to advise or assist with taxes, audits, corporate reporting and compliance, and other financial management tasks.
Ideally, you should have both a bookkeeper and an accountant for your business and they should work together. Don’t forget that Dayna Holland Ltd. specializes in corporate tax compliance and management advisory services so they would make a valuable member of your financial team! Contact them anytime to discuss your financial needs.