What's the difference between bookkeeping and accounting?

Are you thinking about hiring a bookkeeper or accountant in Edmonton and not sure which is right for you? We can help. Here are the main differences to consider when making the choice:

Bookkeeping is traditionally a day-to-day, micro view of your business' transactions, financials, customers, and revenue.

Accounting is more macro level, typically a service that business owners or organizations utilize a few times a year to complete large-scale year-end filings, or get a bird's eye view of their business and its financial health.

The records kept by your bookkeeper help their accountant do their job more accurately, providing you with reliable forecasting for your business growth, advice on how to scale, and more. Without a bookkeeper or a reliable system to track and reconcile your monthly cashflow, your accounting bill is going to soar sky high as they sort through the mess to get an accurate picture.

A bookkeeper can also help you with invoicing and tracking down missed payments or overdue accounts. If you're consistently going 30, 60, or 90 days without being paid by your clients, it's probably time to look at a bookkeeper.

A good bookkeeper is worth their weight in gold: They provide you with an organized record of your business while you have more time to do what you do best. A bookkeeper can also help you make projections for your business, since they're seeing the ebbs and flows on a consistent basis and get to know your seasonality, cashflows, and potential bottlenecks.

Your bookkeeper is also going to be your best friend on the chance you are audited by the CRA (Canada Revenue Agency). Because they have everything codified and organized, it will be easier and less costly for you to comply with the requirements of the audit.

Our team provides full service bookkeeping in the Sherwood Park area and beyond, which means we can handle elements of your business like accounts payable and receivable, bank and credit card reconciliations, remittances, financial reporting, inventory management, payroll, cash management, and office work overloads.

Connect with our expert team here to learn more about how Onyx Accounting can work with your accountant and get you on the right track to save time and money.