Do I need a Bookkeeper, Accountant, or both?
This is a question I am often asked. Do I need a bookkeeper or an accountant? Well that can depend on numerous factors.
The roles of a Bookkeeper and an Accountant can be quite similar as some of their tasks often overlap, so it’s not always easy for people to decipher which service they require. Most bookkeepers’ will work alongside an accountant because some businesses will need both a bookkeeper and an accountant.
A bookkeeper isn’t just a transactional role, although history will say otherwise! The role has developed into so much more than just entering transactional data. A bookkeeper is one of the most important roles in any business. From monitoring the daily incoming and outgoing transactions and reconciling the transactions with the bank to producing crucial cash flow reports to enable businesses to make pivotal business decisions. A good bookkeeper will support you in order to grow and become successful and this is why they are often confused with the role of an accountant. They report on what the data tells them, helping you to set budgets and offer advice in order to save you money.
You will very likely be in touch with your bookkeeper on at least a quarterly basis if not monthly, whereas an accountant is more likely to be an annually occurrence.
An accountant is more specialist but uses the information provided by the bookkeeper in order to develop an overall bigger picture to make their business analysis and evaluate the health of a company. It’s usually larger companies which need to involve an accountant but many bookkeepers’ already have good relationships with accountants, so you don’t need to worry about hiring one separately.
A bookkeeper will often liaise with an accountant for specialist tax advice and to produce financial statements.
How to Decide
Both Bookkeepers’ and Accountants are there to help you manage finances and support your business needs. The service your business will need is entirely dependent on the parts of the process you need help managing and the level of expertise you require. Take into consideration the size and scale of your business, along with the budget you have available – typically, accountants can be more costly than bookkeepers. Financial assistance is a service worth investing in, just be sure to choose the right kind of help for your business.
If you are unsure on which direction to go, reach out to us here at Clear Bookkeeping Ltd and ask for guidance on the services that would most suit your business requirements.