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Should You Hire a Bookkeeper or Accountant?

When it comes to managing your finances, you have two main options: hiring a bookkeeper or an accountant. Both professionals can help you track your money and ensure your finances are in order. But which one is right for your business?


Here's a quick rundown of the differences between bookkeepers and accountants:


What are the Duties of a Bookkeeper and an Accountant?


A bookkeeper's main duty is to keep track of all the financial transactions made by a business. This includes recording income and expenses, as well as tracking inventory and accounts receivable/payable. A bookkeeper may also be responsible for preparing financial statements and other reports for the business owner.


The duties of a bookkeeper include:


- Recording all financial transactions in the company’s books

- Maintaining accurate records of all financial transactions

- Reconciling bank statements

- Preparing financial reports


On the other hand, an accountant's main duty is to provide advice on financial matters, as well as prepare and file taxes. An accountant may also be responsible for auditing the financial records of a business and providing financial planning services.


The duties of an accountant include:


- Reviewing and analyzing financial data

- Identifying trends and recommending solutions

- preparing financial statements

- Providing advice on financial planning and decision-making


What's the Difference Between an Accountant and a Bookkeeper?


As small business owners, it's important to have a basic understanding of the key differences between bookkeepers and accountants - especially since their roles often overlap. Simply put, bookkeepers are responsible for recording financial transactions, while accountants are responsible for interpreting, classifying, and analyzing those transactions.


While the line between bookkeeping and accounting can be blurry, there are some key distinctions between the two roles. The main difference between a bookkeeper and an accountant is the scope of their work. A bookkeeper is primarily responsible for recording and tracking financial transactions, while an accountant for online businesses is responsible for providing advice on financial matters, preparing and filing taxes, and auditing financial records. In other words, bookkeepers keep the books, and accountants make sense of the numbers.


Which One is Right For Your Business?


The answer to this question depends on the size and needs of your business. If you have a small business with simple financial transactions, you may only need a bookkeeper. However, if you have a complex business with multiple income streams and expenses, you may need both a bookkeeper and an accountant.


Another factor to consider is whether you want someone to handle your finances on a part-time or full-time basis. A part-time bookkeeper or accountant may be a good option if you only need someone to keep track of your transactions and prepare your tax returns. However, a full-time accountant may be a better choice if you need someone to provide ongoing advice and guidance on financial matters.


No matter what your needs are, it's essential to find someone you can trust to handle your finances. When choosing a bookkeeper or accountant, be sure to ask for referrals, read online reviews, and meet with multiple candidates to find the right fit for your business.


Conclusion


Bookkeepers and accountants both play important roles in maintaining the financial health of a business. Bookkeepers are responsible for recording and organizing a business's financial transactions, while accountants provide analysis and advice related to those transactions. The right professional for your business depends on a number of factors, including the size and complexity of your business, your financial needs, and your personal preferences.


Whether you need a bookkeeper or an accountant, The ECommerce Accountant has you covered. We are a team of professional accountants and bookkeepers helping eCommerce businesses achieve their financial goals. If you're looking for advice or guidance on your business finances or you want to keep track of your business financially, then our team is here to help. Contact us today to learn more about how we can help you.

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