Accounting and bookkeeping services fall under the same financial management umbrella. While both professions are separate and unique from one another they are both equally important to assessing the health of a business and sustaining positive business growth as well. It is quite a challenge to maintain a thriving small business when the very basics of your fiscal records are out of order.

This is where bookkeeping comes in and acts as the firm foundation on which you make your informed business decisions. A well trained accountant can act as the scaffolding to your business ideas providing you with thorough fiscal analysis and consulting to assist you in building the company of your dreams and The Professional Association of Small Business Accountants is here to help.

The Difference

Bookkeeping services are an essential and basic service that all businesses, both small and large, need. Without the aid of professional bookkeeping firms, companies would have a difficult time handling the day-to-day records and eventually end up with unpaid bills and unposted accounts receivables. This can cause cash flow problems that could jeopardize the company. A bookkeeper takes care of all the repetitive day in and day out expenses and income reports so small business owners can rest easy knowing exactly what is going on with their business financially and where they stand.

Bookkeeping itself is what the name of the profession implies, the keeping of daily records in books. While in this modern day and age a lot of this is done on the computer, most bookkeepers continue to use hard copies of all documents in case of a computer crash. Bookkeeping includes the recording and organizing of information in a variety of financial areas. These can include checkbooks and ledgers, among others.

Accounting on the other hand goes beyond the record keeping aspects and focuses heavily on the analysis of the bookkeeper’s records and consulting with the business owner. A Small business accountant is there to offer you sound advice on how to fiscally proceed with your business to reach the goals that you set forth. An accountant does this by way of pulling together a budget, helping you apply for banks loans, amassing business reports, assisting with tax returns, and offering economic solutions to business problems.

Why do small businesses need both services?

Accounting and bookkeeping services are necessary for the continued growth of any small business. Both professions bring different skills to the table, all of which are complimentary to making you company financially sound. While bookkeeping services give your business a firm foundation of record keeping and financial data for analysis, the accounting side will expand upon these hard numbers with their fiscal business acumen and consulting, which can help your company to steadily flourish in any economy.

Founded in 1982, PASBA makes it easy for your business to find the best and brightest in small business accounting, tax planning and preparation.

PASBA member accountants bring the collective resources of a nationwide network of Certified Public Accountants, Public Accountants,  Enrolled Agents and other practitioners available to answer your tax and financial questions and streamline your business accounting, bookkeeping, and payroll operations. To find a trusted accountant in your area, visit www.SmallBizAccountants.com.

Please be advised that, based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice.  Any information contained in this article does not fall under the guidelines of IRS Circular 230.

Copyright Information 2011 Professional Association of Small Business Accountants