Both accounting and bookkeeping services are important for any business. These tasks are responsible for looking after the financial health of your business. From recording every financial transaction to interpreting this data for making informed decisions, everything contributes to the efficiency of your work.
You can sustain unexpected situations, make better business decisions, stay financially strong, and maintain compliance with the proper execution of these tasks.
Let’s analyze in detail how accounting and bookkeeping services can help you improve your business.
The Difference Between A Bookkeeper and An Accountant
While the task of a bookkeeper is to record every single transaction of the business in chronological order, accountants analyze these financial transactions into meaningful business reports.
Since now bookkeeping transactions are mostly automated, bookkeepers in small and medium organizations or startups carry out activities of an accountant too.
However, dedicated accounting activities include analyzing the financial performance of the business so that informed decisions can be made.
|Decision Making||Bookkeeping data would not help you make any promising decisions.||Based on accounting data, critical business decisions can be made for enhanced growth.|
|Aim||The aim is to keep records accurate and correct for accounting tasks.||The aim is to analyze and interpret records and data offered by bookkeeping.|
|Financial Statements||No financial statements are prepared.||Financial statements’ preparation is an essential activity in accounting.|
|Analysis||No analysis of data is needed or carried out.||Using the data offered by bookkeeping, data is interpreted and analyzed.|
|Types||· Virtual bookkeeping|
· Single-entry bookkeeping
· Double-entry bookkeeping
|· Cost accounting|
· Financial accounting
· HR accounting
· Management accounting
· Responsibility accounting
|Skills Needed||No special skill set is needed for bookkeepers.||Since accountants have to prepare financial reports, they need deep analytical skills.|
What Do Accounting and Bookkeeping Services Include?
Both accounting and bookkeeping services seem similar to most businesses because these activities deal with financial data. However, bookkeepers look after the accuracy of the financial records generated such as bank reconciliation, cash flow management, etc. The accountants look after extracting meaning from this data.
For instance, the data collected accurately by your bookkeeping services will be able to help your accountant analyze if you need to downsize or upsize for maintaining equilibrium. This data and the subsequent reports will help you evaluate if you are ready to take a big financial decision in the coming months looking at the current situation.
What are Bookkeeping Services?
|Bookkeeping Services Include:|
· Bank reconciliations
· Cash flow management
· Profit/loss statements
· Account payables and receivables
· Credit control
· Tracking of stock systems
· Maintenance of ledgers such as asset, expense, and general ledger
What are Accounting Services?
|Accounting Services Include:|
· Invoice and employee expense management
· Updating of accounts on a regular basis
· Preparing financial reports
· Preparing general financial statements
· Managing sales order
· Preparing MIS reports
· Maintaining tax and TDS compliance
· Handling the annual audit
· Managing statutory dues and returns
· Payroll management
Bookkeeping and Accounting Services Can Help You Improve Your Business
It is now more effective and practical to outsource accounting and bookkeeping services for enhanced support, guidance and improved productivity. Here are some amazing benefits of accounting and bookkeeping services.
1. Expert Guidance
Being a small and medium organization or a startup, it is not possible to hire a full team of accountants and bookkeepers. You may only be able to hire one or two accountants and bookkeepers – that too people with fresher skills or less experience.
However, when you outsource, you can get access to an experienced team, which means that these people understand every big and small intricate detail of accounting and bookkeeping services.
Since outsourcing agencies look after accounting and bookkeeping tasks of various businesses, they are always acquainted with compliance regulations. You may never have to worry about non-compliance or paying fines. All this will be efficiently handled by your outsourcing partner.
3. Enhanced Efficiency
As you will always know the exact status of your accounts and finances, you will also know what business decisions you can support financially. Having knowledge of this can help you take the right decisions – stopping when you can’t support any activity and moving ahead when you can.
4. Decision-Ready Reports
Are you frequently asking these questions?
Which clients are profitable?
Are my employees well-paid?
Do I need to hire more staff?
Do we need downsizing?
Do I have enough money to expand?
If yes, then you can get an answer with proper accounting and bookkeeping reports. Your outsourcing partner will offer you these reports with customized variables as per your requirements.
5. Save Time and Money
As you won’t be spending a lot of time on managing finances and books, you will have extra time to re-focus on other business activities. You may not miss important daily activities and taking big decisions will be easier.
Moreover, you will save a lot of money spent on extra working hours, low productivity, wrong decisions, and unnecessary hiring. With proper financial reports, you will know the correct number, which will enable you to make correct decisions. This will automatically reduce the money spent on rectifying mistakes.
With years of expertise and a skilled in-house team, PaySquare offers impeccable accounting and bookkeeping services. From bank reconciliation to customized detailed reporting, you can get everything in no time.
For more details, visit the website or contact PaySquare today.