On the surface, bookkeepers seem to perform the same functions as accountants. Bookkeeping deals more with the compilation of information while accounting deals more with the analysis of financial data that has already been compiled. Bookkeepers keep a ledger of all of the financial transactions a business partakes in.  Accountants focus more on creating financial statements, providing financial reports, completing income tax returns, and providing financial advice for the business owner. Accounting is, therefore, a step up from bookkeeping. Most accounting software can do the basic functions of bookkeeping. This makes it difficult for a business owner to decide if he or she needs to hire both an accountant and a bookkeeper.  It is best to hire the right professional to complete a job he is trained for rather than piling work on one individual. These questions can help you decide if you really do need to hire a bookkeeper.

  • Do you need someone to handle the daily financial tasks of your business? If your answer is yes, you need a bookkeeper.
  • Do you need someone to input your company’s expenses from receipts and invoices into accounting software? If your answer is yes, you need a bookkeeper.

Another important decision you need to make is whether to hire a bookkeeper fulltime or part-time. Some businesses only need a bookkeeper for a few hours per month to sort out the company’s finances. Businesses that earn less than a million US dollars per year fall into this category. When  your business starts earning over the one million dollar mark, it’s time to consider hiring a fulltime bookkeeper and accountant.

Hiring a bookkeeper and accountant can help you manage your company’s finances. Don’t attempt to tackle everything on your own. Hire an expert.