When you first start your business, you may be able to keep track of your expenses and income on your own. But, there comes a time when you grow, and this task becomes unmanageable on top of your other responsibilities. When you’re seeking additional support, is a bookkeeper or an accountant the right hire? Is there even a difference between the two? In this guide, we’ll cover the main differences between bookkeeping and accounting, including a brief overview of each and how the two roles interact. Understanding the Roles Bookkeeping and accounting are often used interchangeably, but they serve distinct functions in the financial management of a growing business. What is the difference between bookkeeping and accounting? As we’ll cover in further detail below, the bookkeeping function is more concerned with managing and recording daily transactions. In contrast, the accounting function takes more of an advisory role, helping teams understand what their financial data means and how to use it to make key decisions. In this way, the work of bookkeepers supports that of accountants, ensuring they have accurate and up-to-date financial information to inform business decisions and strategy.
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