• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

handsonbooks.ca

  • Home
  • About Us
  • Bookkeeping
  • Payroll
  • Tax Returns
  • Contact
    • Appointment
    • If you know someone benefit from my services,
    • Contact
  • FAQ
  • Blog

September 7, 2020 by Ina Turner

What is the difference between bookkeeping and accounting?

Share on Facebook Share
Share on Pinterest Share
Share on LinkedIn Share

Question

When I started my business, the Accountant was the bookkeeper for the business.  Now the Professional Bookkeeper takes on this role of performing the full cycle record-keeping including payroll.

What is Bookkeeping?

Bookkeeping is the systematic practice of recording the financial transactions of a business. These include:

  • Income
  • Expenses
  • Assets
  • Liabilities
  • Owners Equity

Your bookkeeper will keep your records up to date by entering transactions to track the revenues and expenditures. They will also reconcile the statements and accounts. They do not perform any audit functions.

A Professional Bookkeeper such as myself is knowledgeable about tax laws and can complete your year end, if you don’t have an Accountant.

What is Accounting?

Accounting is the process of measuring, interpreting & communicating financial information to enable business owners to make informed decisions.

Accountants can help you implement complex internal controls for signing authority, tax authority and forming of roles to protect the company, track inventory from theft and waste management.

They can do inventory cost analysis and analysis of the financial statements to determine the performance and health of the business.

Do you need a bookkeeper or an accountant?

If you have a small business – such as a sole proprietorship or a partnership of 2 or 3 people – and your needs are simple, your bookkeeper can file your tax returns and prepare financial statements for your business.

If you have a more complicated business – a partnership of 5 or more –  a corporation – you will need someone qualified to calculate bonuses, stocks, and shareholders of the company.

You may wish to hire a Certified Professional Accountant (CPA) to be your Chief Financial Officer (CFO) or have a CPA in private practice review your books and advise you on your business.

If you have any questions about which professional you need – or if you’d like to talk about help in doing the bookkeeping for your business, please contact me for a free consultation.

Share on Facebook Share
Share on Pinterest Share
Share on LinkedIn Share

Filed Under: Bookkeeping

Primary Sidebar

Topics

  • Are you behind in filing your sales taxes?
  • Starting a new business? Here are 7 things a bookkeeper can help with:
  • Do I need to register for GST?
  • Payroll Basics – Statutory Deductions and Net Income
  • What is the difference between bookkeeping and accounting?
  • What to do when an employee stops working for your company
  • Are you making any of these common bookkeeping errors?

Accounting Resources

  • Employment Standards
  • Resources

GET YOUR FREE DOWNLOAD ABOUT SERVICES

Sign up below to learn more about our bookkeeping services.

Articles

  • Do I need to register for GST? December 15, 2022
  • Thanksgiving and what you need to know about statutory holiday pay October 4, 2022
  • Payroll Basics – Statutory Deductions and Net Income September 27, 2022
  • Real Estate Agents September 26, 2022
  • Do I need to register for GST? December 7, 2021

Services

  • Small Business Bookkeeping
  • Tax Returns
  • Payroll

Other Services

  • Ever wonder how to track time and attendance?
  • Government Collections – Behind On Your Taxes
  • Rental Properties Services
  • Get Started! Organizing Your Receipts

Footer

HOURS

  • Monday to Thursday 10 a.m. to 8 p.m.
  • Saturday 12 noon to 5 p.m.
  • Open on Sundays during tax season

 

Contact Us

Box 51362 Cameron Rd PO
Burnaby, BC V3J 0C9
Phone: (604) 314-8395

Email: Click here

GET YOUR FREE TIP SPREADSHEET!

Sign up below to get your free tip sheets. You'll also get our latest blog posts via email.

  • Small Business Bookkeeping
  • Tax Returns
  • Payroll

© 2023 · Hands on Accounting