To many, the terms bookkeeping and accounting sound exactly the same. They are both words that have to do with financing; therefore, they mean the same thing. This is actually not true. Today, the experts ta SmarTax, LLC, are here to make sure you know the difference between both. When it comes to accounting firms, we have all the expertise you need. Our team specializes in bookkeeping services and are conveniently located in Pembroke Pines.
Do You Know The Difference?
To some business owners, accounting and bookkeeping are perceived as the same thing. The confusion is understandable — these two services are closely related, yet they have distinct purposes. These responsibilities are an essential part of any business, so it’s important to learn the difference between bookkeeping and accounting before choosing a team to handle your company’s finances. Read on for our breakdown of accounting vs. bookkeeping for business owners.
Accounting Firms Explain What Each Is
- Daily monetary transactions are what keep many businesses moving, and it’s essential to record these exchanges carefully. Without procedures in place to track transactions (including payroll), a business is left guessing where its money is coming from and going to.
- In order to track transactions consistently and accurately, a bookkeeper will use a tool called a ledger. Today, most ledgers are completely software-based. This makes it easier to record and access all payables and receivables quickly.
- When compared to bookkeeping, accounting is more of a high-level business task. In fact, accounting cannot exist without solid bookkeeping to back it up. The main difference between these processes is the addition of analysis in accounting. While bookkeeping is more about plugging numbers in the right places, accounting analyzes and makes sense of those numbers. It is more of a subjective task, but one that is important in forecasting growth.
- Accountants organize financial indicators and make sense of them. This is important for creating accurate financial statements that paint a picture of a company’s profitability and trajectory. In addition to profits, accounting analyzes a business’s current cost of operations. When a business owner is looking to cut costs but doesn’t know where to start, accounting services make decisions easier.
Who Are We?
We provide tax preparation for individuals and small businesses. We pride ourselves in preparing your return quickly and accurately. Customer satisfaction is our number one priority. At SmarTax, you’ll get professional, quality service, at a reasonable price.
Call Us For Bookkeeping Services Today!
When it comes to accounting firms, we are the experts to trust. It is very important to know these important factors when it comes to taxes. It is all part of tax preparation. We are here to help, especially when it comes to an understanding of small business accounting. SmartTax, LLC in Pembroke Pines, wants to ensure you are ready and informed when it comes to your bookkeeping services. Call or visit our experts today for more information on our payroll services. We take pride in being one of the “best tax accountants near me”!