The Difference Between Accounting and Book Keeping and Which One You Need to Hire!

June 14, 2019

Whether you’re a practiced business owner or you’re starting a new company for the first time, understanding the financial aspect of your venture can be challenging. In particular, you may be wondering whether you need an accountant or bookkeeper to help you keep your financial dealings in order. Here’s what you should know about the difference between a book keeping and accountant service Los Angeles so you can determine which one you need.

Book Keeping vs. Accounting

Book keeping is a service that records your financial transactions. Los Angeles accounting is much broader and covers everything from financial reporting to interpreting and analyzing financial data. The primary objective of a bookkeeper is to keep all financial transaction records organized and systematic. An accountant’s primary objective is to analyze the company’s overall financial situation and communicate relevant fiscal information to authorities as needed.

How To Tell Which Type of Financial Professional You Need

Whether your business is large and successful or still in its beginning stages, you should have an accountant either on your staff or available to help you as needed. Consulting with a skilled Encino accountant from the beginning can help you understand your tax filing requirements and learn how to choose the right entity type. You will also want to talk to a skilled accountant whenever you have financial questions or need advice about how to manage your cash flow.

Depending on your financial propensities and the type of business you own, you may want to hire a book keeper in addition to an accountant. If you have a basic book keeping program and are good with math, you may be able to handle the basic book keeping responsibilities on your own for a while. As your company grows, you’ll need the help of a full-time book keeper and accountant service Los Angeles to help you manage your company’s financial matters and keep accurate records.