After finding out more about bookkeeping and what a bookkeeper does, should your business outsource bookkeeper?
If you're still not sure who to choose: a bookkeeper and an accountant, let us give you some definition to see who you really need for your business.
Bookkeeper Vs. Accountant?
The definition of bookkeeping may confuse a lot of people, but you can see it like this: accounting is more complex than bookkeeping. To keep it simple, take a look at this.
Another main responsibility of an accountant is tax preparation. As a business owner, you need to file quarterly estimated tax payments, annual federal tax returns, and state tax returns. In total, you may need to pay tax up to 6 times a year. That sounds overwhelming. You’ll need an accountant to do this for you all year round.
Online Bookkeeping and Accounting Software or Bookkeeping Services: Which one should you choose?
You might have googled about online bookkeeping before and was bombarded with almost a hundred different software. There are QuickBooks Online, GoDaddy, FreshBooks, Sage 50Cloud, etc.
A question may pop up in your head: Can software really manage your finances?
The answer is Yes and No. Technology can handle a lot of common accounting and bookkeeping tasks, but not all.
When you have a repetitive aspect of your transactions, then it’s easy for technology to track and follow. For example, when you make a payment towards software or service monthly, the bookkeeping software can recognize that pattern and will immediately record it whenever it happens. However, when you mail a check to a supplier, it’s harder for the software to figure out.
Overall, we cannot say that online bookkeeping and accounting software can replace actual bookkeepers and accountants but rather a companion to manage finance easier. Especially if your business needs detailed finance tracking, a human brain to keep this up accurately is essential.
Are you ready to get help, or are you still not sure if you need help to run your business? Contact Irvine Bookkeeping to have a free 15-minute consultation!