Accounting and bookkeeping services are often confused with one another. Although both roles may seem to be similar in some ways, they are clearly different job descriptions critical to the success of any corporation. Consider what differentiates them and how company owners will profit from attaining both services from a reliable outsourced accounting firm.
Bookkeeping and accounting are two critical tasks for every business corporation. In the clearest terms, bookkeeping is in charge of documenting financial transactions, while accounting is in charge of interpreting, classifying, reviewing, publishing, and summarizing financial data.
To the untrained eye, bookkeeping and accounting may seem to be the same discipline. This is because accounting and bookkeeping both work with financial matters, necessitate a working knowledge of accounting, and identify and produce reports based on financial transactions. At the same time, all of these processes are intrinsically distinct and provide different advantages. This article will explain the absolute variations between bookkeeping and accounting service providers.
Accounting – what is it?
Accounting is the process of analyzing financial data in order to assist business owners in making sound resource allocation decisions. Certified accountants perform accounting tasks such as financial statement analysis and auditing. Certified accountants are experts in preparing and inspecting a series of financial reports. Accountants are responsible for ensuring that financial statements are correct and error-free. In essence, an accountant is employed to ensure that a company operates smoothly by doing a thorough analysis of its bank transactions.
What is the concept of bookkeeping?
Bookkeeping is the profession of documenting a business’s financial transactions. Bookkeepers are hired professionals responsible oversee the records of these business transactions. Purchases, sales, payments, payroll, and other company costs are all examples of financial transactions. The bookkeeper’s function is to record these financial transactions and to ensure that everything is properly accounted for.
Five distinctions between accounting and bookkeeping services
Accounting services provider Singapore professionals are expected to possess a unique set of analytical skills. They are supposed to be adept at interacting with others, analyzing financial transactions, and summarizing them.
On the other hand, bookkeeping services Singapore professionals are only expected to register, weigh, and classify financial transactions accurately.
#2 Prepare financial statements
Bookkeeping services Singapore professionals are not responsible for financial statement preparation. Accountants are responsible for performing this function as part of the accounting process. However, a bookkeeper’s primary responsibility is to log transactions and keep you financially organized, while accountants provide consultation, research, and are better equipped to advise on tax matters.
The bookkeeping services Singapore professional’s function is extensive, which means that the individual assigned to the position can manage all of a business’s financial transactions. Bookkeeping services are supposed to document these business transactions accurately. On the other hand, the accountant might be assigned to a particular accounting role, such as fixed assets. This position is more advisory, as the accountant’s analysis and insights assist business owners in assessing the company’s financial health.
#4 Qualifications and certifications
Bookkeeping services Singapore experts are supposed to be competent in their work, which is why they must have superior math skills and an uncanny ability to pay attention to detail. Accounting services provider Singapore professionals must also embody these characteristics, as well as others. Bookkeeping professionals are required to possess the necessary education and training, as well as ample experience and qualification as a Certified Public Accountant (CPA).
#5 Workplace environment
A bookkeeping services Singapore expert’s work is typically confined to serving smaller businesses. Accounting services provider Singapore expert may work in a variety of sectors, including financial institutions, government agencies, and tax agencies.
Comparability in accounting and bookkeeping
Accounting and bookkeeping are both of these operations are concerned with bank transactions. As a result, all occupations should have a working knowledge of accounting. Today, bookkeepers are often seen managing the accounting processes of smaller businesses. Bookkeepers will also manage the variation and generation of financial reports in addition to documenting financial transactions, which is enabled by the use of accounting software.
On the other hand, accounting services provider Singapore professionals are typically in charge of a company’s financial transaction recording. Additionally, it may be entrusted with the bookkeeping portion of the accounting role.
The importance of both accounting and bookkeeping functions and how to ensure accurate accounting and bookkeeping
Accounting services provider Singapore experts depend on bookkeepers to collect and analyze financial data. Bookkeepers depend on accountants to determine which financial dealings should be kept. Both roles are critical as business owners need strategic guidance on how to operate their businesses. A bookkeeper can assist you in developing a budget for your company, while an accountant can provide insight into how to minimize your tax expenses. This is why most businesses employ both bookkeepers and accountants. Every employee’s contribution is undeniably critical to the business’s financial viability.
Due to the critical nature of reliable and timely financial statements, which these two roles share, businesses are turning to outsourced accounting firms to ensure error-free financial reports that adhere to regulatory requirements. Outsourcing a business’s accounting and bookkeeping functions is gaining popularity, as companies that provide these services are highly qualified and up to date with the new accounting and financial practices. Businesses rely on their services to allow them to concentrate more on running the business and avoid the monthly salary costs associated with an in-house accounting team.
Why bookkeeping functions are important?
Bookkeeping is a transactional and administrative function that is in charge of documenting financial transactions such as purchases, receipts, sales, and payments on a daily basis. Accounting is more subjective, offering financial insights to business owners based on knowledge derived from their bookkeeping records.
The bookkeeper’s organized financial records and properly balanced finances, combined with the accountant’s smart financial plan and accurate tax filing, contribute directly to the long-term success of any company.
Some business owners learn to handle their finances on their own, while others employ a specialist to enable them to concentrate on the aspects of their business that they really enjoy. Regardless of which choice you choose, investing time or money in your company’s finances can only help it expand.
Careers in finance are only going to get better as businesses, their capital, and the economy expand. Accountants and bookkeepers assist businesses in staying on board with their finances and succeeding. Accounting and bookkeeping are similar in that they both require strong math skills, attention to detail, and a high level of commitment.
Hire one today
WLP Group, for example, offers a free service consultation to ascertain the accounting requirements. If you are a company owner in need of bookkeeping and/or accounting services, contact WLP Group today. We can schedule a complimentary consultation. Once we understand your current situation, we can tailor a solution that allows you to focus on your core competencies while we take care of all of your bookkeeping and accounting needs.
You will determine the right package for your business requirements during your meeting with us. Ascertain that you receive reliable and prompt accounting and bookkeeping services to protect your business’s financial future. Consider outsourcing accounting services in Singapore to obtain competent accounting and bookkeeping services that can assist your business is growing. Contact us today for more information.