An accountant and a bookkeeper perform entirely different tasks. Bookkeepers manage your ledgers and ensure your accounts are balanced on a daily, weekly and monthly basis.
Accountants are tax experts and provide a high level report into your businesses performance. This is the reason why your accountant cannot keep your books as well as a bookkeeper.
Here are a few reasons why you shouldn’t let your accountant keep your books
- Not capable enough to understand the business
An accountant does not really have an idea of what is going on in your business on a day to day basis. Most business owners go to their accountants only during tax time which means an accountant gets to have a look at the company’s books only once in that entire year. During tax time, the most that your accountant will do is getting numbers to complete your taxes.
- They do not focus on the little things
A good bookkeeper will make sure that every detail of your accounts is kept well. But, an accountant will not be able to do much of a justice to the same job. An accountant’s job is to only look at the entire picture of your business and have an understanding of your tax liabilities and the changes that can be made to your tax liabilities.
- They may miss out on the larger trends
Accountants pay close attention to the finances of your business at the end of the year; this is treated as an advantage of appointing an accountant. If you have your accountant taking care of your bookkeeping as well, then there are chances of your accountant missing out on some larger trends of accounting while paying close attention to bookkeeping your numbers.
- It could be expensive
An accountant may charge you a lot whenever they do your taxes. Imagine paying the same charge to your accountant on a weekly basis. The cost per hour for your accountant is much higher than a bookkeeper. Bookkeeping is more labour intensive, therefore, hiring a bookkeeper will cost you much lesser with the same expertise as an accountant.
An accountant is very much necessary especially during tax time and they can also give you great advice regarding your overall business performance. But bookkeeping is a task that will be best carried out by professional bookkeepers. For information regarding accounting and bookkeeping – get in touch with us!