Bookkeeper or Accountant?

Sometimes, the terms bookkeeper and accountant are used interchangeably. And while there are overlaps, they are two distinct jobs.

Bookkeepers deal with the day-to-day finances of a business. They manage a business's financial transactions so the owner understands where their money comes from and where it goes. They can also help with payroll, accounts receivable, and accounts payable. They will also provide the owner with financial reports to help them make solid business decisions.

Accountants deal with the bigger picture of a business's finances. They look at the financial reports to help the owner make business decisions like what entity it should be, what type of basis (cash or accrual) to report on, and when it might be time to grow. Accountants also work with business owners at tax time. Accountants try to lower the tax obligation and file returns. They also ensure the business is following IRS guidelines.

All businesses need good bookkeeping and accounting. Sometimes, you can do it in-house. Sometimes, it becomes a good decision to outsource either or both jobs.