| Organized and updated financial records are the basic | | | | checks, sales, purchases, payroll, cash disbursements, |
| elements of bookkeeping and accounting. | | | | etc. The bookkeeper makes sure that your books |
| Bookkeepers and accountants rely on your books to | | | | remain organized and balanced and can then turn over |
| prepare your taxes (among other things). | | | | records so that your accountant can generate monthly |
| The job of a bookkeeper is different from that of an | | | | financial statements. Furthermore, bookkeeping |
| accountant but the two do intersect in some aspects, | | | | software such as Quick Books consulting have |
| especially during tax preparation and filing season. | | | | changed and raised the standards on record keeping, |
| Bookkeeping focuses more recording of a person's or | | | | especially in the eyes of the IRS. |
| a company's financial transactions such as sales, | | | | Investors and lenders will also want to see accurate |
| payroll, invoices, and deductibles. Bookkeeping used | | | | and complete financial data before granting you |
| main methods of recording—single entry and double | | | | financing. If you are seeking or plan to seek outside |
| entry. The former is the simpler method but most | | | | capital, your books must be in order. In order to do that, |
| companies use the double entry method of | | | | you need regular bookkeeping (at least monthly). In |
| bookkeeping because it is more comprehensive and | | | | addition, you need accurate information to manage the |
| detailed. | | | | financial health of your company. You must know if |
| Accounting covers a broader scope of tasks. It is the | | | | there are customers in arrears, or if you have |
| systematic recording, reporting, and analysis of financial | | | | outstanding balances on your lines of credit. Without |
| transactions of a business. The person in charge of | | | | accurate records you cannot manage the cash flow |
| accounting is known as an accountant, and this | | | | of your business. |
| individual is typically required to follow a set of rules | | | | A company's tax contributions are also the key to |
| and regulations, such as the Generally Accepted | | | | keeping yourselves from getting audited. Looking |
| Accounting Principles. Accounting allows a company to | | | | ahead, taxes will continue to be used for social |
| analyze the financial performance of the business, and | | | | engineering—to encourage job creation, help the |
| look at statistics such as net profit. Accountants are | | | | unemployed, provide incentives for going green, assist |
| the ones you look for help during tax preparation | | | | U.S. companies going global, and ensure that most |
| season. | | | | Americans have health coverage. Taxes will also be |
| These days, Certified Public Accountant Firms provide | | | | used to serve its traditional function as a revenue |
| both services of bookkeeping and accounting. In order | | | | raiser to pay for national defense. Since big and small |
| to make a company or a small business work | | | | business generally want to be relevant with their |
| efficiently, services of Certified Public Accountant | | | | services through their contributions, it is then imperative |
| Firms need to be part of their standard working | | | | that you have accountants in tune with emerging |
| procedures. In addition, rules o taxes and tax filing is | | | | trends in the industry. |
| changed and adjusted every year by the IRS and so, | | | | For example, one accounting trend of 2010 is the |
| in order to avoid confusion, companies even procure | | | | replacement of the generally accepted accounting |
| their own accounting and bookkeeping department. | | | | standards (GAAP) with international financial reporting |
| Small businesses, in particular, benefit a lot from | | | | standards (IFRS). Hiring certified public accountant firms |
| bookkeeping. Present trends such as Quick Books | | | | will ensure you that you will be in-line with the |
| consulting are helping a lot of small companies stay | | | | requirements of the given standards. This is only one |
| afloat during the current economic crisis by providing | | | | of the many reasons of why employing the help of |
| them a heads up on the more feasible directions with | | | | bookkeepers and accountants is detrimental to your |
| their investments. Bookkeepers will organize all of your | | | | business' success. |
| financial transaction records - receipts, canceled | | | | |