Bookkeeper is to nurse as accountant is to doctor. (Sorry for the flashback to English class.)
When faced with creating a LinkedIn profile I hired someone to do it for me. I was so excited when I received notification it was ready. With anticipation I opened the document. As I read each sentence my excitement turned to disappointment. It turns out I am not a bookkeeper. Instead I opened an accounting firm who provides audit services. Ummm, no.
Like the person who wrote that profile piece, most business owners assume that bookkeeping and accounting are one in the same. However, each serves a different function for all businesses. To understand why you should be using both a bookkeeper and an accountant in your business you first must understand the difference between them.
Think about being in the hospital. The nurse is there all day tending to your needs. The doctor pops by in the morning, to analyze the information provided by the nurse and make any necessary adjustments to treatment.
Like a nurse, your bookkeeper is there, regularly, monitoring your finances. At tax time your accountant uses the information provided by your bookkeeper to perform audits, prepare taxes, and diagnose the health of your business.
I hope I have helped you understand the different and essential roles bookkeeping and accounting play in the financial management of your business.
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