Accurate and timely management of your financial data can save your business a lot of money. It helps you avoid costly tax and payroll mistakes. It also provides reporting needed for informed financial decision-making.
However, accounting and bookkeeping are not the same. Understanding the differences will ensure you put your financial tracking and processes in the right hands.
Accountants use the work done by bookkeepers to analyze your company’s finances, prepare income tax returns, and provide tax planning advice.
On the other hand, bookkeepers take care of financial record-keeping and have a big-picture understanding of your business.
Bookkeepers Manage Day-to-Day Financials
Here are just some of the items Virtual Associates payroll and bookkeeping services provide for you:
- Categorize business expenses in an industry-specific general ledger
- Record transactions and post debits (costs) and credits (income)
- Pay bills
- Invoice customers
- Process payroll
- Meet payroll tax requirements
- Review aging receivables (past due invoices)
- Reconcile bank statements
- Generate and review Income Statement and Balance Sheet
- Make quarterly payroll, sales tax, and income tax payments
- Generate and send out annual IRS 1099-MISC and other IRS forms
- Review financial documentation before providing them to your accountant
Should I Hire an Accountant or a Bookkeeper?
Eventually, you will probably need both.
Maintaining the books is a time-consuming and tedious responsibility. It must be done regularly. Therefore, it’s important to determine if you really have the time, energy, and expertise to handle it all on your own.
You will need an accountant for tax time and for counsel as your business grows. But don’t pay a lot more money for your accountant to be your bookkeeper too.
Virtual Associates provides full-service payroll and bookkeeping for small business owners who aren’t ready to bring it in-house. Contact us for a free consultation and a quote for affordable, skilled bookkeeping services with a personal touch.
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