Accounting vs. Bookkeeping: Why You Need Both
Why Do I Need a Bookkeeper and an Accountant?
According to John Michael Kledis, founder and president of Peridot Consulting, Inc: “Bookkeepers are the swimmers in the pool. Accountants are the lifeguards.” While the swimmers enjoy all the detailed maneuvers required to move freely through the water, the lifeguard watches out for dangers that could trap the swimmers and endanger their safety.
Likewise, bookkeepers keep records of all your financial transactions while your accountant uses all this data to form the safe navigation of your personal and business financial future. Bookkeepers manage the minutiae of your finances, while accountants see the big picture. Ideally, you find both of these important roles in a single shop, as you do at Peridot Consulting, Inc.
What Are the Differences in Bookkeeper and Accountant Duties?
Your bookkeeper keeps meticulous records of all fiscal interactions. They organize all your financial records. You’re prepared for tax season and unannounced audits when you have a thorough bookkeeper in your corner. Essential duties a bookkeeper performs include:
Noting changes in your inventory
Issuing profit and loss statements
Paying suppliers
Organizing receipts
Issuing invoices
Tracking petty cash transactions
Managing payroll
Your bookkeeper reports this information to the accountant. This tracking makes it easier for the accountant to focus on helping you grow your business, increase profits and make intelligent financial decisions. The accountant has the education and knowledge to use this data as it best fits your specific needs. An accountant’s responsibilities include:
Creating budgets
Balancing expenses to grow revenue and reduce your tax burden
Generating individualized reports to address concerns in profit and loss statements
Altering categories to meet specific accounting best practices and standards
Drafting a design for the budget, making it easier to adhere to and understand
Establishing a ledger
Developing financial strategies
What’s in the Imminent Future for Bookkeeping and Accounting Services?
A savvy accountant keeps you apprised of digital advances that your company should invest in, as well as the vital current applications to keep your finances in order. One program that your bookkeeping and accounting company relies on extensively is QuickBooks.
With Peridot Consulting, for example, QuickBooks-certified account managers Melissa Doran and John Michael Kledis expertly use the features of the software to make your company run more efficiently. Some of the popular QuickBooks features include:
Free online cloud storage
Client portals
On-demand documents with easy access
Effective organization of cloud-based data
Process automation
Advanced analytics
How Does Peridot Consulting Take Advantage of Innovative Technology?
With Certified QuickBooks experts, experienced bookkeepers and certified public accountants on staff, Peridot Consulting Inc. play an expansive role in building new companies. Furthermore, they teach you how to use the technology effectively. This company keeps paperless records so you’re also contributing to a greener environment.
Our team of consultants believes in open communication. Peridot Consulting uses “Canopy,” a virtual technology used as a tool to empower you. We also assign you a partner to work closely with you to meet your specific needs. The aim is one of prosperity. You don’t get another affiliate in the interim. This relationship is one of integrity and satisfaction. Contact our bookkeeping and accounting partners by email, phone or on our website. Email: peridot@peridotconsultinginc.com (828) 419-7170.