Deciding Between Bookkeepers or Accountants
When it comes to the financial upkeep of your business, the lines can be a little blurred when you need to decide between an accountant or a bookkeeper. Since either of them will use cloud accounting software, the one that you choose will depend on what your needs are.
One sure thing is that your choice will depend on the needs of your company and the situation that you are in. And of course, your budget will always be a consideration. Here are some things that you will need to think about as you decide which type of service your business will need:
The Stage of Your Business
If you are still in the process of setting up your new business and making sure that things are off to a good start, it’s best for you to opt for the skills of an accountant. These financial professionals will be able to give you advice and make sure that you choose the correct corporate structure to reduce tax payables.
They will also know how to best protect you in terms of legalities. After you are properly set up, it’s best for you to have a professional handle your accounts. This is where a skilled bookkeeper comes in! They can address your daily financial transactions while giving you real-time reports, keeping you on track for all future tax, and payroll duties.
The Size of Your Business
The volume of your transactions will dictate whether you need an accountant or a bookkeeper as well. If you own a small business with staff members and a lot of paperwork, a bookkeeper would be great if they have experience in your industry. They will be required to create profit and loss statements and put together balance sheets as well as organize aged receivables and payables reports for you. Most small businesses don’t have too many reports to handle and a bookkeeper should be able to keep track of them as well as all your transactions.
The Type of Service Needed
If you need someone who is more knowledgeable regarding legal terms when it comes to finances, an accountant can act as your agent. If a bookkeeper is certified, they could represent your business at the tax office. You want to make sure you have someone who is experienced in the case of your financial needs.
If you need someone who is knowledgeable in law, your choice will depend on the degree of knowledge needed and what expertise will be applied. Be sure to look at the qualifications of your accountant or bookkeeper when asking them to assist you with their services for legal matters.
Your Budget
This is one of the most important considerations. Whether you need an accountant or a bookkeeper, you need to make sure you find the right service that fits your budget. You want to make sure you have the funds to pay them for their services and keep them if needed. Take a good look at your budget and consider the future for your business as well as what your wants and needs are and will be.
Rates can vary by the hour depending on what services are needed. Speak to your accountant or bookkeeper about payment and salaries. In general, accountants will charge higher rates since they will have higher qualifications and tend to be more knowledgeable.
Totally Booked offers bookkeeping by QuickBooks Certified ProAdvisors based out of NYC. Get in touch today to see how we can help!