When it comes to bookkeeping and accounting, there is a lot of confusion about the two services. Many people think that they are the same, but this is not the case.

In this blog post, we will discuss the differences between a bookkeeper and an accountant. We will also explore which profession might be better for your business.

What is a Bookkeeper?

A bookkeeper is responsible for recording and keeping track of all financial transactions made by a business. This includes income, expenses, investments, and liabilities.

Bookkeepers use software to record and store this information. They also create financial reports that show how the business is performing.

What is an Accountant?

An accountant is responsible for more than just recording financial transactions. They are also responsible for analyzing this information and providing advice to the business owner.

Accountants often have a degree in accounting or a related field. They might also be certified public accountants (CPAs).

What Kind of Credentials Does a Bookkeeper Need?

Bookkeepers do not need any specific credentials. However, many bookkeepers choose to get certified. The most popular certification is the Certified Bookkeeper (CB) designation from the American Institute of Professional Bookkeepers (AIPB).

What Kind of Credentials Does an Accountant Need?

Accountants need to have a degree in accounting or a related field. They might also be certified public accountants (CPAs). So, what’s the difference between an accountant and a CPA?

CPAs have passed a national exam and met other requirements, such as work experience. Not all accountants are CPAs, but all CPAs are accountants.

How Does a Bookkeeper Charge for Their Services?

Bookkeepers typically charge an hourly rate for their services. This can range from $20 to $50 per hour, depending on the bookkeeper’s experience and location.

How Does an Accountant Charge for Their Services?

Accountants typically charge an hourly rate for their services. This can range from $50 to $250 per hour, depending on the accountant’s experience and location.

What are the Benefits of Hiring a Bookkeeper?

The benefits of hiring a bookkeeper include:

• You will have more time to focus on running your business.
• You will have peace of mind knowing that your finances are being handled by a professional.
• Your financial reports will be accurate and up-to-date.

What are the Benefits of Hiring an Accountant?

The benefits of hiring an accountant include:

• You will have access to expert advice on financial matters.
• Your tax returns will be prepared by a professional.
• You will have peace of mind knowing that your finances are in good hands.

Are Bookkeepers Accountants?

Bookkeepers are not accountants. Bookkeepers are responsible for recording and keeping track of financial transactions. Accountants are responsible for analyzing this information and providing advice to business owners.

To put it simply, accountants handle the more comprehensive financial aspects of a company’s health. Bookkeepers handle the day-to-day tasks of tracking a company’s finances.

Depending on the size and needs of your business, you might need both a bookkeeper and an accountant on your team.

How to Hire the Best Bookkeeper or Accountant for Your Business

Now that you know the difference between a bookkeeper and an accountant, you can decide which type of professional is right for your business.

Here are a few tips to help you hire the best bookkeeper or accountant for your business:

1. Define Your Needs

Before you start looking for a bookkeeper or accountant, take some time to think about what your business needs. Do you need someone to track your finances daily? Do you need someone to prepare your taxes? Knowing what you need will help you find the right professional for your business.

2. Consider Their Qualifications

When you’re looking at different bookkeepers and accountants, make sure to consider their qualifications. As we mentioned earlier, bookkeepers do not need any specific qualifications. However, many bookkeepers choose to get certified. The most popular certification is the Certified Bookkeeper (CB) designation from the American Institute of Professional Bookkeepers (AIPB).

Accountants need to have a degree in accounting or a related field. They might also be certified public accountants (CPAs). So, what’s the difference between an accountant and a CPA?

CPAs have passed a national exam and met other requirements, such as work experience. Not all accountants are CPAs, but all CPAs are accountants.

3. Check Their References

Before you hire a bookkeeper or accountant, be sure to check their references. Ask for references from past clients and call them to ask about their experience.

4. Get a Written Agreement

Once you’ve found the right bookkeeper or accountant for your business, be sure to get a written agreement in place. This agreement should outline the scope of work, the fee schedule, and the terms of the agreement. Having a written agreement will help ensure that both you and the bookkeeper or accountant are on the same page.

Hiring a bookkeeper or accountant is an important decision for any business owner. But with a little research and planning, you can find the right professional for your needs.

Should You Outsource These Services?

There are a few things to consider before outsourcing your bookkeeping or accounting needs. The first is cost. Hiring an in-house bookkeeper or accountant can be expensive. If you’re on a tight budget, outsourcing these services might be a better option.

The second thing to consider is the level of service you need. If you have a complex financial situation, you might benefit from having an in-house professional who can provide expert advice. However, if your needs are more basic, outsourcing might be the way to go.

Finally, consider the amount of time you have to devote to managing your finances. If you don’t have a lot of time to keep track of your finances, hiring someone to do it for you can save you a lot of headaches.

Outsourcing your bookkeeping or accounting needs can be a great way to save money and free up your time. But it’s important to consider all of the factors before making a decision.

Top Signs You Should Hire a Financial Planner for Your Business

Do you need more direction than a bookkeeper or accountant can offer? If so, you may need to hire a financial planner. Here are some signs you should go ahead and hire one.

1. You’re Not Sure Where Your Money is Going

If you can’t seem to figure out where your money is going each month, it might be time to hire a financial planner. A financial planner can help you create a budget and track your spending. This will help you get a better handle on your finances and make better financial decisions in the future.

2. You’re Not Saving Enough for Retirement

If you’re not saving enough for retirement, a financial planner can help you set up a retirement plan and make sure you’re on track. They can also help you choose the right investments to reach your goals.

3. You Have a Lot of Debt

If you have a lot of debt, a financial planner can help you develop a plan to pay it off. They can also help you consolidate your debt and lower your interest rates.

4. You’re Not Making the Most of Your Money

If you feel like you’re not making the most of your money, a financial planner can help you find ways to save money and invest for the future. They can also help you figure out how to make the most of your income tax deductions.

Final Thoughts

As you can see, there is a clear difference between an accountant and a bookkeeper.  Both professionals play an important role in helping businesses manage their finances. But which one is right for you? The answer ultimately depends on your needs, budget, and the direction of your business.

If you want accurate bookkeeping for your business, consider hiring a reputable accounting firm. One of the trusted accounting firms in Florida is Swiftbooks, LLC. Call 786-204-2881 today to help your business keep its financial records straight!