Most people know the phrases accounting and bookkeeping. The problem is, people often use these terms interchangeably. This leads to confusion about the terms and the expectations associated with them. For businesses, clarity of services is crucial. So then, what is the difference between accounting and bookkeeping?
The biggest difference is that bookkeeping doesn’t require any special skillsets or analytical insight. Bookkeeping is simply daily numbers and information associated with financial transactions recorded. The goal of bookkeeping is to record information associated with finances, and that’s it. A bookkeeper’s work is often overseen by an accountant.
Accounting, however, is more analytical. It requires a series of skills for looking through data, analyzing it, and presenting that information in a coherent, usable package. Accounting uses the information gleaned from bookkeeping to help inform and make business decisions. After passing the certification, one can become a Certified Public Accountant, or CPA.
A large goal of accounting practice is to gauge the financial situation for a business. A bookkeeper merely records the day to day activity, but the accountant reads those numbers and translates them into overall action. And an accounting firm specializes in reading and summarizing this data and helping guide the client to a better understanding of their business and its overall health.
Accounting can be a complex art because of its intricacies. There are often many abstractions in data, and interpreting them soundly can prove to be a landmine for one not well-versed in reading and analyzing financial statements or ledgers.
CS Accounting is in the business of guiding businesses based on the financial data contained in their books. We help you comb through piles of data and numbers to compile the best course of financial action for your firm or your goals. There are numerous financial perils associated with any business decision, so the guidance of a trusted CPA can prove lifesaving for a company.
A CPA you can trust is worth its weight in gold. The financial security, freedom, and independence you can obtain from properly using the services of an accounting firm can set you up on the long run for a truly successful business. While keeping good books and a ledger can be done by anyone and involves a lot of discipline in itself, there’s no substitute for an incisive, experienced CPA who can interpret and suggest a course of action for you.
CS Accounting does all this and more. We have years of experience, and we’re a small accounting firm that provides a personal touch to help build long-term relationships with all our clients. Getting to know who we work with helps us see their needs, and understand how and why they do what they do. We want to help everyone achieve financial security and use their resources as best as possible. We also help with tax preparation and payroll services, ensuring we go one step beyond and keep up with your business even more.
What starts with good bookkeeping ends with terrific accounting.