Bookkeepers vs Record Keepers?
Both professional services are considered critical components of any accounting process that contribute to the achievement of any business objective.
Bookkeeping is a component of the accounting process in businesses and other organizations which keeps books or financial transactions, such as income and expenses. On the other hand, the creation, collection, and management of records, particularly those of a business or government nature, is the coverage of recordkeeping.
Bookkeepers vs Record-keepers
Though bookkeepers and record keepers may perform similar work, they definitely have different skill sets. Let us see how their role varies.
Bookkeepers are in charge of keeping track of financial transactions, making sure that accounts are balanced, and making financial statements. They use accounting software and systems to keep accurate records of purchases, sales, payments, and receipts.
Bookkeepers also keep track of accounts payable and accounts receivable, manage payroll, and generate financial reports. They make sure that the financial records are correct, up-to-date, and in compliance with the laws and rules that apply.
Record-keepers are responsible for keeping track of all kinds of business transactions, not just financial ones. They make and keep records about vital business records like those pertaining to their employees, customers, and sales.
Record keepers also have the task of organizing and preserving records in a way that makes them easy to locate and obtain when they are needed. To make sure that the records are correct, complete, and protected, they could utilize software to keep track of records or create and manually maintain documents.
Bookkeeping and Record-Keeping Helping Small Businesses
Prevents Fraud & Mistakes From Happening. Bookkeepers and recordkeepers are both very important to small businesses because they help the owners know how their finances are faring. All financial transactions are recorded correctly and on time. This will help keep fraud from happening and keep small business owners from making mistakes.
Help Organize Financial Records. Bookkeepers and recordkeepers help small business owners organize their financial records and keep track of how much money the business owes to its suppliers and how much money its customers owe the business. Organized financial records are crucial for business growth and expansion.
Making Smart Financial Decisions. They help business owners make smart financial decisions, like where to cut costs or make more money. By looking at their balance sheets, income statements, and cash flow statements, they can easily see how financially stable the business is. This is important for making budgets for improvement and for filing taxes.
Comply With Tax laws and Rules. These experts offer reliable services that make it easier for small business owners to follow tax laws and rules. It is assumed that employees are paid correctly and on time and that tax laws are followed, so that audits and fines, which can be very expensive and cause a lot of trouble, don’t arise.
Make Financial Processes Easier. They make the process easier for small businesses, which can be helpful for a busy business owner. Keeping track of receipts, invoices, and bank statements on their own can take a lot of time for business owners. It provides free time for small business owners to take care of other essential tasks like sales, marketing, and customer service.
