15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Learning the Difference Between a Bookkeeper and an Accountant

In order to take care of accounting for payroll, business owners should hire an experienced professional to help them. The only problem is that they might not know whether or not they should hire a bookkeeper or an accountant. Not only that, but business owners also might not be aware of when they should hire either of these professionals.

Bookkeeper vs. Accountant

A majority of bookkeepers start off as either data entry clerks or entry-level bookkeepers. Their essential job is to keep the books straight and document business transactions. A certified and experienced bookkeeper might choose to become an accountant.

Accountants take care of business analysis, reporting and processes and might also offer financial advice. It’s not unusual for a bookkeeper and accountant to work together on accounting for payroll and other aspects of a business.

Which Do Business Owners Need?

In order to determine whether they need a bookkeeper or accountant, business owners have to look at the industry they work in, if they have a large inventory, the number of employees they have and how intricate their businesses is. The more complex a business is, the more important it is for business owners to choose a bookkeeper who has the help of a reputable and experienced CPA. Not only that, but it’s also a good idea to ask for references and proof of E&O insurance (errors and omissions).

Cost

Usually, bookkeepers are less expensive than accountants. Bookkeepers can alert business owners of items that need the attention of an accountant and offer them expertise. The overall price of an accountant or bookkeeper will be determined by the industry, state and the bookkeeper’s or accountant’s experience. In any case, it’s always a good idea for business owners to make sure that they regularly meet with their accountant or bookkeeper in order to make sure that everything is in good shape.

No matter if they choose to hire a bookkeeper or accountant to take care of accounting for payroll, business owners will want to make sure they hire someone they get along with and who speaks to them in terms they can easily understand.