Differences between Bookkeeping and Accounting
The terms Bookkeeping and Accounting are related practices, which have different functions in the area of accounting and finance of your company; these procedures are necessary for your business to be successful.
The activity that we know as Bookkeeping or accounting record, focuses on the registration, organization and accounting of the numbers corresponding to the financial operations of your organization. Payrolls, invoices, expenses, debits, credits and bookkeeping.
On the other hand, Accounting is the analysis and reporting of the data obtained through bookkeeping to later present them to the managers and shareholders of your company. Through this activity, financial statements, reports and budgets are checked, which will allow you to analyze the performance of your business.
We share with you the main key elements that you should take into account to determine whether you require one service or another:
Budget: Bookkeeping services are of recurring nature, requiring less analysis. The hourly budget is lower, but the accompaniment is for longer periods. Accounting services require a higher level of analysis and expertise, so the hourly cost is higher with shorter service periods.
Speed: The reports obtained through bookkeeping will allow you to know your company's numbers almost immediately. On the other hand, through accounting you will obtain analyses that will take longer, but will allow you to project and prepare for the future.
Organization of the information: the registry or bookkeeping will allow you to keep the information organized, it is fundamental to fulfill the legal obligations of control of the information, also, having the information organized will help you to diminish the amount of hours that you will need of accounting services, you will save time and money.
No matter the size of your business, you will need both bookkeeping and accounting services; if you have no idea how to perform these practices it is important that you have third parties that can advise you and help you with these tasks.
To make this decision, it is essential that you evaluate the financial position of your business. Analyze the activities and supervision that an employee would require, versus the cost of a third party expert who specializes in these services and can support you efficiently.
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