All businesses have financial records and transactions to keep track of, whether you’re flying solo or have a few individuals working for you.
While you, as the owner, may do all the record keeping, we all know that it takes a lot of time and effort to do so.
What you can do then is to hire someone—either an accountant or a bookkeeper—to help you with these endeavors. But which of them will fit the bill better?
These descriptions of their responsibilities may help you select the better person.
Contrary to the beliefs of some, the tasks of an accountant and a bookkeeper are actually different. And hiring either one of them depends on your needs.
A bookkeeper is a person who records your financial transactions daily. He or she ensures all transactions from sales, purchases, to payments, and receipts are properly documented.
Aside from these tasks, a bookkeeper also produces invoices, completes payroll, posts debits and credits, and maintain historical accounts.
An accountant, on the other hand, looks into the much bigger picture for your business. He or she generates information from the data provided by the bookkeeper. The accountant may also prepare financial statements, complete income tax returns, and verify the data provided by the bookkeeper.
From all these information and forms, the accountant may then analyze the company’s financial standing then advise the management of the possible effects of every financial decision.
Which one should you hire?
Your decision relies primarily on your goal for your business. If you just want somebody who can provide you with a good record keeping system because it’s either you have an accounting background yourself or you have no plans to expand your business, a bookkeeper should suffice.
However, if growing your business is one of your priorities, sound advice from an accountant is definitely called for.
Whichever you choose, make sure to equip him/her with a reliable accounting software.
Oojeema is secure online accounting software designed specifically for Philippine businesses.