What Does A Bookkeeper Do VS An Accountant?
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There are a few major differences between a bookkeeper and an accountant.
What are they?
The biggest difference between a bookkeeper and an accountant is education.
How long?
Depending upon the level of dedication, an accounting major can take the following time to complete: Associate’s degree programs, which provide entry-level opportunity, usually take two years. A bachelor’s degree program generally takes four years. Master’s degree programs and MBAs generally require one-to-two years, and they need to get continuing education every year to stay current with their certification. We have highly qualified accountants on staff.
Bookkeeping is not a regulated field, so all that IS necessary for a bookkeeper is to have complete knowledge of bookkeeping software.
Here is what matters to you. A bookkeeper is far less expensive than an accountant.
Bookkeeping is a transactional and administrative role that handles the day-to-day task of recording financial transactions, including purchases, receipts, sales, and payments.
Accounting is more subjective, providing business owners with financial insights based on information taken from their bookkeeping data.
The cost of a bookkeeper versus an accountant is a big factor for your business.
Generally, accountants fees are between $150 to $400 per hour, depending on their specialties and what you need from them.
A bookkeepers fee is less than half that, and generally start between $40 and $80 per hour, depending on how experienced they are, and what you need from them.
A bookkeeper reports the daily and monthly financial tasks of the business owner.
Your bookkeeper creates financial statements every month, or more frequently.
Here’s a little of the basics of what Pinnacle Bookkeeping does.
- A profit and loss statement that has all the business transactions, and all of their expenses.
The net amount that tells our clients how their business is doing, and the health of their business.
- We can also process your payroll, and pay your bills.
- Reconciling bank accounts to ensure accuracy.
- We can send invoices to your clients.
A detailed list of Pinnacle Bookkeeping Bookkeeper tasks can be found on the video @ Pinnacle Bookkeeping
We function more as a daily or weekly part of your business, and we do many of the tasks that you might have started out doing as a small business owner, but now you want to contract out to someone else do this because it takes far too much time away from your business, or has become to difficult.
We also have accountants on staff for tax preparation that know all the tax laws, all the updates, and legal deductions.
Pinnacle brings all this together for a complete, accurate financial picture of your business.
As a small business owner it’s very advantageous to use a professional bookkeeper because we are able to do all of those accounting and bookkeeping duties.
A bookkeeper makes your quarterly tax preparation far less expensive to take to your account because all the financial work is already done. The accountant only needs to verify accuracy and apply tax law to your records.
Of course there is a little more to it than that, but the bottom line is that a bookkeeper can literally keep you out of trouble with the IRS, help you manage your finances to help grow your business, and keeps you aware of how your business is doing on a regular basis.
For more information about PINNACLEBOOKKEEPING.US please visit us @ Pinnacle Bookkeeping – CLICK HERE. We have a page full of bonuses for you @PinnacleBookkeeping.us
