Bookkeeping Vs Accounting: Which One Do You Need For Business Growth?
Posted by BOMCAS LTD ACCOUNTING & TAX SERVICES on February 15th, 2021
The world of accounting is a huge one that incorporates a range of essential services. And to manage your business finance rightly, you require its help. But have you heard about the bookkeeping? If yes, do you think it’s nothing but accounting?
Well, you need a rethink if you think so. It’s a different deal from accounting. Check the continuing part and gather precise information on both of these services. Also, know whether both of them can work together to boost up your business. Keep on exploring.
Definition Of Bookkeeping
Bookkeeping is nothing but a subset of accounting. This process requires you to go through some steps for the financial security of your business. These steps are:
- The proper recording of all the significant financial transactions.
- Posting both credits and debits.
- Giving required invoices
- The balancing of all current, historical accounts and the general ledgers.
- Completing the payroll.
Amid different parts, the general ledger is a significant part of this. It refers to a fundamental document that the bookkeeper uses to keep a record of all required expenses and receipts.
This component is known as posting as well. Hence, with an increasing rate of selling, you will get more ledgers. Pen and papers were the tools that were used to create ledges previously. But now, the advancement of technologies has introduced people to different specialized bookkeeping software.
What Is Accounting?
It covers a broader area than the earlier one. While you can call bookkeeping the only part, you can consider this as the whole area. Accounting covers different areas, including bookkeeping systems, maintaining, and establishing control, data analysis, and so on.
With the help of the data provided by this service, you can take better decisions. This service also helps to review the performance and financial report as well. Both these reports are helpful for all, including the investors, shareholders, business owners, as they depend on them to measure the overall success.
The main components of accounting are:
- Analyzing cost operation
- Keeping a record of expenses
- Helping the business owners to get an idea about the impacts of a financial decision.
- Bookkeeping services
- Income Tax Preparation
- GST Preparation and Filing
- Personal Tax Preparation and Filing
- Corporate Tax Preparation and Filing
- Trucker Tax Services
- Mobile Accounting and Tax Services
- Small Business Accounting and Tax Services
- Completing business tax returns and so on.
Can Both Of Them Work Together?
There is no denying that booth them come with identities. And when carried out rightly, both of them can be beneficial for your business. As already said, bookkeeping refers to a part of accounting.
Hence if you want to accelerate your business growth with strong accounting, give equal importance to bookkeeping.
The bookkeeper requires to give the right information to the accountant for maintaining and balancing the business records flawlessly. If not, you will get faulty records and updates at the end.
So, you may understand, you need a bonding of both these two for growing your business. Avoiding one of them might not give the required financial supports to your business.
And to get the benefits of these services, deal with a reputed accounting firm. Such firms come with wholesome accounting solutions besides these two that every business owner requires. Here’s a reputed accounting company you may contact without hesitation.
Get Professional Accounting Services From This Reputed Company
BOMCAS LTD ACCOUNTING & TAX SERVICES takes pride in providing useful and affordable accounting services to its range of customers. Go through its website bomcas.ca carefully to learn more about this reputed firm in detail. The dedicated and experienced accountants over there ensure you to serve you in the best way!
About the Author
BOMCAS LTD ACCOUNTING & TAX SERVICES