Frequently Asked Questions About Bookkeeping And Accounting
If you’re new to business or even if you have been in business for a few years, you may have several questions and doubts on your mind about bookkeeping and accounting. These may pertain to your business’s progress, expenditure, and overall financial health. To clear your confusion and arm you with the information you need to make the right decisions, Symphony Development Group has answered some of the most frequently asked questions about bookkeeping. These answers are based on our personal experience so that you have first-hand information that gives you insights into your finances.
1. What is the difference between an accountant and a bookkeeper?
An accountant files tax returns and deals with the IRS on your behalf. An accountant also provides financial statements as required and can use data to make informed financial decisions and accurate advisory services. A bookkeeper does the data entry and keeps the books up to date. In some cases, the same person does both bookkeeping and accounting, or the firm you hire may have both a bookkeeper and an accountant, so you save time and money.
2. What are the responsibilities of a bookkeeper?
A bookkeeper is responsible for recording and maintaining a company’s daily financial transactions. They also prepare reports for the managers and trial balances to assist the accountants. A bookkeeper may also help you run payroll, collect debts, generate invoices and make payments.
3. What is not the job of a bookkeeper?
A bookkeeper does not provide tax advice or tax returns. These tasks are the job of a certified public accountant (CPA), who must pass a CPA exam and be licensed by a state board. These individuals have completed advanced education at an accredited university and passed the exam. These qualifications will allow them to provide financial advisory services and tax preparation.
4. Is a bookkeeper enough?
An ideal business support system would include a bookkeeper, a competent management team, and a CPA to provide ongoing advisory services. Bookkeepers can provide many levels of service across a variety of industries. The skills required for this service include extensive knowledge of bookkeeping principles and best practices, a high level of industry-specific computer and technology skills, awareness of the most current relevant software applications used within the industry, and basic accounting skills, including financial statements, job costing and payroll practices. Coupling these skills with a strong understanding of the businesses they work with will provide the foundation of information needed for the management team to make decisions and for the CPA to provide accurate advisory services for clients.
If you have any more questions about bookkeeping, accounting, CFO services, and more, get in touch with the experts at Symphony Development Group. We are an accounting and bookkeeping firm in San Francisco, CA, and Mooresville, NC providing outsourced consulting, CFO, controller, and bookkeeping services using the latest cloud-based technology. We serve clients across San Francisco, Mooresville, Charlotte, Durham, Raleigh, Greensboro, Los Angeles, San Diego, San Jose, Oakland, Anaheim, Santa Ana, California, Seattle, and Boston,Quebec, Canada , Fountain Valley, CA , Novato, CA , and Mesa, AZ.