What Does a Bookkeeper Do?
Bookkeepers are the unsung heroes of small business finance. They focus on the day-to-day details, ensuring that your financial foundation is solid and accurate.
Key Responsibilities of a Bookkeeper:
- Recording Transactions: Bookkeepers log every financial transaction—sales, grants, expenses, or income streams—with precision. From invoices to utility bills, they ensure nothing falls through the cracks.
- Categorizing Transactions: Each transaction is assigned to its respective category, such as rent, payroll, or operational expenses, ensuring clear insights into where your money is going.
- Account Reconciliation: To maintain accurate books, bookkeepers reconcile all transactions across bank accounts, credit cards, and other sources, ensuring there are no discrepancies.
- Accounts Receivable and Payable: Bookkeepers keep track of incoming payments from customers and outgoing payments to vendors, ensuring cash flows smoothly.
- Tracking Inventory: For businesses that deal with inventory, bookkeepers monitor stock levels and cost of goods sold for accurate reporting.
Why Your Small Business Needs a Bookkeeper:
By ensuring that financial data is recorded and organized accurately, small business bookkeepers provide the raw data that accountants analyze to create strategies and insights. Without solid bookkeeping practices, your business could encounter errors, missed transactions, or even compliance risks.
Effortless Financial Solutions with Thryve Group
What Does an Accountant Do?
While bookkeepers handle the details, accountants take a step back to see the bigger picture. They take the information bookkeepers provide and use it to analyze your business’s overall financial health, create strategies, and help you make informed decisions.
Key Responsibilities of an Accountant:
- Analyzing Financial Data: Accountants interpret the financial numbers provided by bookkeepers to generate insights into your business’s profitability, cash flow, and overall health.
- Advising on Tax Strategies: A good accountant ensures your tax filings are compliant and uses expertise to suggest strategies for minimizing tax liabilities.
- Financial Forecasting: Accountants help plan for the future by building financial projections based on current trends.
- Strategic Guidance: Need advice on pricing models, expansion opportunities, or cost-cutting measures? Accountants can provide actionable strategies tailored to your business goals.
- Audit and Compliance Support: If your business faces an audit or must meet regulatory standards, an accountant ensures all documentation is in order and works on your behalf.
Why Your Small Business Needs an Accountant:
The Key Difference Between Bookkeepers and Accountants
How to Choose the Right Accountant for Your Small Business
If you decide to hire an accountant, it’s essential to find the right fit. Here’s what to look for:
- CPA Designation: Choosing a Certified Public Accountant (CPA) ensures a basic level of competency and expertise.
- Experience in Your Industry: An accountant familiar with your type of business will understand the unique challenges and opportunities you face.
- Business Knowledge: Beyond numbers, look for an accountant who can help with broader business strategies and decisions.
- Communication Skills: Your accountant should be able to explain complex financial concepts in clear, concise language.
With the right accountant, your business gains more than peace of mind—you gain a partner dedicated to your success.
Why Your Business Needs Both
For small businesses, hiring both a bookkeeper and an accountant offers the best of both worlds. Here’s how they complement each other:
- Efficiency: While the bookkeeper ensures everything is recorded and reconciled, the accountant can focus on strategic initiatives.
- Accuracy: Data flows seamlessly from the bookkeeper to the accountant, minimizing errors and producing better insights.
- Growth: By allowing each professional to focus on what they do best, you can grow your business confidently and effectively.
Take Charge of Your Business Finances
Why Consider Thryve Group?
At Thryve Group, we understand how vital sound financial management is for small businesses. That’s why we offer an integrated accounting department as a service, combining bookkeeping, strategic CFO guidance, and tax preparation into one seamless package.
With Thryve Group, you don’t have to choose between a bookkeeper or an accountant—you get both, plus the expertise of a full financial team to support your business at every stage of growth.
