While bookkeeping and accounting both support healthy finances and accurate financial records for businesses, they are not the same thing. Although they work together, they perform separate functions and require different skillsets. And if you want to make wise financial decisions (and avoid costly tax penalties), you need both.
Bookkeeping is actually a building block for good accounting. With greater accuracy and organization in your ledger, you set yourself up for greater success with accounting.
If you find that your business is struggling with financial forecasting and analysis, you might benefit from stronger foundational bookkeeping. Hiring a bookkeeping service can be a great way to strengthen your business’s finances. While many small business owners start out handling the finances themselves, hiring financial professionals can bring huge benefits for their business. The knowledge of financial best practices can help keep your business healthy and growing.
However, you may not know what kind of financial help you need. If that is the case, let’s dive deeper into the differences between bookkeeping and accounting.