Small Business Blog > Business Finances > Bookkeeping vs. Accounting: Main Differences & Similarities July 6, 2020 by SmartBiz Team E very business owner should know that although accounting and bookkeeping accounting are both important business functions, there are differences. Advancing technology and shifting mindsets in both professions are causing many bookkeepers to take on roles more traditionally managed by accountants. This person will make sure that your records are sufficiently organized so that you have the information you need to effectively manage your business. Many bookkeepers now refer to themselves as “technology consultants” in addition to calling themselves bookkeepers. If you have a knack for organization and finance management, you may be able to handle your bookkeeping and accounting on your own. Below are some of the most common job responsibilities for accountants. The distinctions between accounting and bookkeeping are subtle yet important to understand when considering a career in either field. 01:18 We’ll go into the job specifics a little later— but first let’s take a look at the functions of a business accountant. Accounting begins before bookkeeping starts and continues after it ends. Bookkeepers and accountants are both working toward the same goal: help business owners be more financially responsible and remain in compliance with financial regulations. Bookkeeping vs Accounting | Difference between Bookkeeping and Accounting with list of top differences and real time examples including images, cat, … Businesses do better when they have a complete picture of their finances, and bookkeepers and accountants each look at a business’ numbers through different lenses. Defining Accounting and Bookkeeping. Like any position, the responsibilities of a bookkeeper can vary depending on the business. Let our FinancePal professionals handle it, and refocus your efforts on accelerating your company’s success. What's the difference? Their goal is to be able to recommend the best “technology stack” for their clients’ varied needs. With the perspectives of both positions, you get a holistic view of your finances, setting your mind at ease and freeing your energy to do what you love—running your business. As the tax code increases in complexity, tax resolution has become a popular focus with many accountants. In general, a bookkeeper’s primary goal is to maintain consistent records to make business management and accounting easier. While both deal with financial transactions, bookkeeping centers on the organization and recording of … Bookkeeping is simply the recording and monitoring of financial transactions. Bookkeeping refers to recording Financial transactions. An accountant works closely with the business owner or decision-maker to adjust budgets, file taxes, and strategize for financial success. Plus, you’ll have access to a dedicated team of bookkeeping and accounting professionals to help you optimize your financial strategy and keep track of your business transactions. Business owners can hire professional bookkeepers and accountants as part of their payroll, or hire an external team to fill these roles. Also, bookkeeping includes a financial reporting function of values and performance indicators for those who need information. So how can an accountant help my business with tax prep? Because of their additional education and certifications, accountants typically make a higher salary than bookkeepers. Below are some of the most common certifications for accountants. Both are tasked with the financial reporting and well-being of the business. By Derek Miller. In some states, a person must be a CPA in order to refer to themselves as accountants. Bookkeeping Vs. Accounting: The Differences And Similarities. Accounting, on the other hand, is primarily about processing the information produced by bookkeepers and, based on it, generating business insights and providing financial forecasts. Working with an accountant regularly ensures that you’ll recognize when you get to the point of needing a bookkeeper. We’re clearing up the important differences in the bookkeeping vs accounting dilemma to help small businesses, and their owners identify what kind of financial services they need. Bookkeeping vs Accounting: What’s the Difference? There’s not much room for error when it comes to managing your small business’ money. Typically accountants do not handle the actual bookkeeping tasks themselves, but rather serve as an analytical resource for business owners. Also, since accountants are typically knowledgeable about their clients’ personal financial situation as well as their business situation, some are becoming tax coaches and certified financial planners. Bookkeeping is the initial stage, in which we keep the record of income and expenditure, whereas in Accounting department accountants analyze the company’s financial activity and prepare reports. While bookkeepers organize data, accountants turn the data into valuable information. We’ll also discuss what business owners can expect when they hire for bookkeeping and accounting services. While this position may require some prior experience in office management and some knowledge of financial processes, there are not as many certifications available (or necessary) for bookkeeping. Bookkeeping vs Accounting. The bookkeeper is on the ground floor, managing the day-to-day transactions and looking out for changes to the organization or significant financial events that need to be addressed. They’ll also determine the estimated payments the client needs to pay throughout the upcoming year, and make any other recommendations for tax planning. They record financial transactions for businesses, typically using database and spreadsheet programs that have been selected and set up by an accountant. Even in the documents they prepare, there are differences between a bookkeeper vs accountant. In addition, they might provide reviewed financial statements in certain situations, like if the client is applying for a loan, or perform an audit of the financials. Bookkeepers have also often provided full back-office support, including invoicing clients, paying bills, and processing payroll. Qualified accountants typically hold a bachelor’s degree in accounting or finance, as well as some prior work experience in finance as they will be delivering financial advice. For others, a degree in accounting is all that is required. Now that you know the functions of bookkeeping and accounting as well as a little bit about their history, let’s discuss what the day-to-day responsibilities of a bookkeeper and accountant look like. Bookkeeping vs Accounting: What is bookkeeping? Both professions start by learning the basic principles of accounting and its applications. Bookkeepers generally hold an associate’s degree, or even a bachelor’s in business. Conversely, bookkeepers cannot be considered accountants, unless they have completed their degree in Accounting or Finance, and met other applicable certifications. His Enrolled Agent designation is the highest tax credential offered by the U.S Department of Treasury, providing unrestricted practice rights before the IRS. Staffing for both positions, taking on some of the responsibilities on your own, or finding a professional finance management service is best if you want to keep your small business prosperous. While these are extremely important roles to fill, few business owners actually understand the difference between bookkeeping and accounting. Many small business owners aren’t sure about the difference between bookkeeping vs. accounting. Remember, the bookkeeper compiles the financial data and the accountant makes sense of it and can help provide recommendations. A bookkeeper records and classifies a company’s daily financial transactions such as sales, payroll, payment of bills, etc. FinancePal offers accounting for small businesses so that business owners can get back to handling the other important facets of their business—  like growing profits and keeping customers happy. Bookkeeping vs Accounting. Thanks to Pacioli’s double-entry method, today’s small business owners can get a comprehensive look at where their business stands, with the help of a bookkeeping and accounting team. Bookkeeping is said to be transactional, meaning it deals with the day-to-day financial transactions and administration of a business. The client creates their own estimates and invoices, then receives payments against those... Expenses/Accounts Payable. Bookkeeping is typically seen as a process that deals largely with financial transactions and general business administration. If we compare bookkeeping vs accounting, bookkeeping covers the problem of measuring the financial impact of economic activities. When choosing an accounting professional, whether a bookkeeper or an accountant, Debra and Hal offer this advice: You can also find qualified bookkeepers and accountants through your local Small Business Development Center office or through professional bookkeepers associations like ICBUSA and your state’s Board of Accountancy website. As mention, there are some additional certifications accountants can obtain if they wish to advance their expertise. If you’re a small business owner you likely have someone on staff (or even yourself) managing your company’s financial records and budget. After starting his career as a financial analyst in New York City, Jacob returned to Chicago and co-founded FinancePal in 2015. Bookkeeping vs. Accounting: The Basics The TL;DR version goes like this. Accountants may be responsible for creating yearly budgets, analyzing business operation costs, and completing tax paperwork. Although the terms are used interchangeably they actually refer to … At Behind the Scenes Financial Services, Debra focuses on the bookkeeping and processes for clients, while Hal handles the tax side of the business. But as your business grows and becomes more complex, you’ll want to seek out a full charge bookkeeper. Let’s take a look at some examples of a bookkeeper’s daily tasks. Bookkeepers and accountants have similar educational backgrounds. The bookkeeper then pays the vendor bill through Bill.com, which syncs the bill and bill payment to their accounting software. According to PayScale, the average salary for a bookkeeper is $41, 244 while for accountants the average is $50, 420. Other tasks usually performed by a bookkeeper include: Accountants have traditionally taken more of an advisory role with business owners. Finally, a good bookkeeper or accountant knows their worth, and they will charge for it—don’t choose someone simply because they are cheap—you’ll end up paying more in the long run. The bookkeeper gets notified when the vendors email or fax their bills directly to the client’s Bill.com account, and then assign the proper vendor, expense category, and client as an approver. Accounting and bookkeeping are two important processes that small business owners utilize to ensure their financial information is correct. An accountant might do some bookkeeping, but given their higher rates this isn’t the best use of their time. Bookkeeping and accounting are both essential to your small business. When you’re working with an already limited budget and narrow profit margins, staying on top of your expenses is one of the most important responsibilities of owning a business. Besides their differing job descriptions and daily responsibilities, bookkeepers and accountants have a few additional distinctions that are important to note. All the accounting help you need in one place. Since most people consider bookkeeping and accounting to be interchangeable, there is often a lot of misconception about what each professional can provide. Maintaining and storing transaction details related to business in a chronological manner is known as the act of BookKeeping. Technically, the definition of bookkeeping is the activity or occupation of keeping records for financial affairs of a business. 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bookkeeping vs accounting

Bookkeeping is a crucial first step in the accounting process. With the introduction of financial management software for businesses, the lines have blurred between bookkeepers and accountants. But it’s an important distinction as knowing the difference can help you hire the right professionals to advise you in your business. When it comes to managing finances for your small business, it’s best to have a dual-layer system— and bookkeeping and accounting go hand-in-hand. Though they both are involved in business finances, there are a few distinctions that small business owners should be aware of as they’re hiring for these positions, or strategizing their financial management process on their own. Let’s discuss the differences between the two regarding qualifications and salaries. A bookkeeper might tell you how to streamline your accounting processes or help you create a budget for your business while an accountant could suggest ways to minimize your tax liability or help you decide whether to incorporate your business. At the end of the month, bookkeepers get the bank/credit card statements from the client and reconcile each account, then close the period so nothing can be edited or deleted. Both bookkeeping and accounting involve managing financial transactions and accounts. There’s a good reason for this. Each has a different function and specializes in a different field. Ask them for referrals and actually call them. In order to manage your finances comprehensively, you’ll need to consider the value of both positions. Using the financial statements prepared by the bookkeeper, accountants work on strategic planning with their clients, providing valuable insight into strategies that could help business owners grow their companies. That’s where bookkeepers and accountants come in to make small business operations run smoother, and help owners gain peace of mind regarding their business finances. Certified public accountants (CPAs) are accountants regulated by their state board of accountancy. Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information base of an entity, which is needed for two basic purposes: Facilitating the day-to-day operations of the entity. It is very common for non-accountants to think that bookkeeping and accounting are of the same thing. Bookkeeping 101: Bookkeeping Vs. Accounting. What’s the Difference Between Bookkeeping vs. Accounting, © 2021 Fundera Inc., 123 William Street. Both bookkeepers and accountants work with financial data, for example. Many small businesses don’t have the employment capacity to hire internally, so many opt for external bookkeeping and accounting services. Accountants typically take over when the bookkeeper has entered all the transactions, and they prepare monthly management accounts or year-end statutory accounts for a limited company. The work done by a bookkeeper and an accountant often overlap, as bookkeeping is a part of the accounting process. 7 eCommerce Accounting Tips & Procedures You Need to Know. The bookkeeper also matches the transaction up to the bank feed, as they do with deposits. When starting your business, it’s always important to consult an accountant to understand the financial workings and requirements of your business. Bookkeeping vs. Accounting. Engaging both a bookkeeper and an accountant ensures that you receive the best advice for your business.Â. The bookkeeper enters the deposits in their accounting system, so that those transactions match what will ultimately show on the bank statement at the end of the month. The bookkeeper also matches the transactions in their accounting system to what comes in through the bank feed. This system also allowed merchants to evaluate which of their products were selling well and which ones weren’t— helping them optimize their inventory to make better sales, and minimize the cost of resources and operation. Debra Kilsheimer and Harold “Hal” Hickey of Behind the Scenes Financial Services in Port Orange, Florida, are a husband-and-wife team of accountants who provide both bookkeeping and accounting services. These include sales transactions, purchases, receipts, and payments made by the company. This allows business owners and their finance teams to update and access information remotely, and centralize their financial data in one repository, rather than tracking countless accounting journals. You should always have an accountant on call when you’re filing your business taxes. The business owner is an expert in their business, and a good bookkeeper is an expert in processes and accounting. Billie Anne Grigg is a contributing writer for Fundera. Just write a few words about the purpose, inspiration or success of the project and let the images tell the rest of the story. 21st Floor, New York, NY 10038. For transactions generated outside of their accounting software (like debit transactions, miscellaneous checks, and credit card transactions), bookkeepers add them as they come in from the bank feed by assigning payees and/or expense categories. Startup Accounting & Bookkeeping Services. In addition to preparing the financial statements and reports that are required by banks and governmental agencies, accountants provide monthly or quarterly insight into the health of the business. The general overview of the two goes as follows: Bookkeepers tend to work in a more administrative sense— recording and filing financial transactions. They’re in charge of balancing the books, which means carefully recording and monitoring assets, liabilities, and equity. Now that you have a basic understanding of bookkeeping and accounting, let’s dive into the functions these roles serve; as well as examine the day-to-day responsibilities of each to give you an even more in-depth understanding. Since they are performing more administrative tasks than suggesting financial advice, bookkeepers tend to have less experience and typically charge less than an accountant would. They must meet minimum educational and experience requirements and complete ongoing annual continuing education to stay on top of new laws and regulations. It can also help you know what to expect from each relationship. Periodically, the accountant will review interim financial statements to ensure that any estimated payments need to be adjusted. To begin with, let us understand the debate of bookkeeping vs accounting. This has freed bookkeepers from much of the traditional data-entry work, letting them step into more of an advisory role. However, if you’re like most small business owners, you’ve likely got enough on your plate. Automations within accounting software have dramatically streamlined the bookkeeping function. The general overview of the two goes as follows: Bookkeepers tend to work in a more administrative sense— recording and filing financial transactions. Hiring a good accountant can help a small business owner decide on the right entity type, understand tax filing requirements, and offer strategic advice to maximize profits or minimize their tax liability. Accountants may also get professional certifications like a Certified Public Accountant (CPA) for additional credibility and experience. Bookkeeping vs. Accounting: An Overview Bookkeeping is focused more on objective financial tasks, such as recording financial transactions and administration of finances. Your email address will not be published. Accounting Cycle: What are the Accounting Cycle Steps? According to Laurie O’Neil, owner of Innovative Financial Services in East Hartford, Connecticut, bookkeepers help clients with their processes and the detail part of the day-to-day business operations, whereas the accountant or CPA is more broad and tax focused. The client gets notified, then reviews the PDF of the vendor bill and approves it for payment. And both generally don’t get much time off between the months of January and April. Between managing employees, maintaining customer satisfaction, and balancing your personal life, it’s easy to let things slip through the cracks. He has been featured in an array of publications, including Accounting Web, Yahoo, and Business2Community. Where bookkeeping ends, accounting begins. (That’s not to say that accountants can’t and won’t record transactio… Make sure you are comfortable working with them (as Debra says, “I will know more about you than your priest”). Accounting and Bookkeeping are two very different procedures within an organization. This strategy helped merchants keep a more thorough record of their income and expenses— not to mention gain a better understanding of the business’ financial status. While their responsibilities may be different, they rely on each other to work effectively. While they have different job descriptions, bookkeepers and accountants tend to work together closely— typically with the accountant overseeing the bookkeeping role. Education. Debra says that she usually sees this need arise around the six-month point. Maintaining proper financial records and monitoring the business’ standing help… Choose someone who is happy to hear from you when you call and is responsive. If you’re not prepared to take on these challenges with expert-level financial strategy and accuracy, you may want to consider hiring a professional. As most things these days, bookkeeping has transitioned from the paper scrolls and feather pens from Pacioli’s days to managing business finances online. Note: Accountants can also fill the role of bookkeepers— though they typically don’t. A crucial function an accountant plays is helping you choose your business entity. She is a QuickBooks Online ProAdvisor, LivePlan Expert Advisor, FreshBooks Certified Beancounter, and a Mastery Level Certified Profit First Professional. While business accountants generally handle the aforementioned responsibilities, CPAs hold an additional level of credibility (and responsibility) as they are licensed by the state to prepare tax statements and represent taxpayers before the IRS for audits and under other circumstances. It’s important to monitor the ebbs and flows of any business’ expenses and income— but the importance of this role takes on a whole new meaning when we’re talking about small businesses. As Debra puts it, “My goal all year is to help you make a profit, and Hal’s goal is to have you pay less tax.”. However, this route can end up being pretty costly by the time you add in the cost of including this person on your company’s payroll— not to mention additional hiring and onboarding costs. It’s worth the money to use OPS to do the things that you might not be good at or enjoy so that you can focus on what’s really important—your business. Since bookkeepers often know their clients’ businesses in intimate detail, this shift makes intuitive sense. By entering your phone number and clicking the "Get Custom Quote" button, you provide your electronic signature and consent for FinancePal to contact you with information and offers at the phone number provided using an automated system, pre-recorded messages, and/or text messages. Using the documentation and records collected from the bookkeeper, a small business accountant is able to aggregate the information to make financial evaluations and advise the business owner. Jacob Dayan is a true Chicagoan, born and raised in the Windy City. Learning Center > Small Business Blog > Business Finances > Bookkeeping vs. Accounting: Main Differences & Similarities July 6, 2020 by SmartBiz Team E very business owner should know that although accounting and bookkeeping accounting are both important business functions, there are differences. Advancing technology and shifting mindsets in both professions are causing many bookkeepers to take on roles more traditionally managed by accountants. This person will make sure that your records are sufficiently organized so that you have the information you need to effectively manage your business. Many bookkeepers now refer to themselves as “technology consultants” in addition to calling themselves bookkeepers. If you have a knack for organization and finance management, you may be able to handle your bookkeeping and accounting on your own. Below are some of the most common job responsibilities for accountants. The distinctions between accounting and bookkeeping are subtle yet important to understand when considering a career in either field. 01:18 We’ll go into the job specifics a little later— but first let’s take a look at the functions of a business accountant. Accounting begins before bookkeeping starts and continues after it ends. Bookkeepers and accountants are both working toward the same goal: help business owners be more financially responsible and remain in compliance with financial regulations. Bookkeeping vs Accounting | Difference between Bookkeeping and Accounting with list of top differences and real time examples including images, cat, … Businesses do better when they have a complete picture of their finances, and bookkeepers and accountants each look at a business’ numbers through different lenses. Defining Accounting and Bookkeeping. Like any position, the responsibilities of a bookkeeper can vary depending on the business. Let our FinancePal professionals handle it, and refocus your efforts on accelerating your company’s success. What's the difference? Their goal is to be able to recommend the best “technology stack” for their clients’ varied needs. With the perspectives of both positions, you get a holistic view of your finances, setting your mind at ease and freeing your energy to do what you love—running your business. As the tax code increases in complexity, tax resolution has become a popular focus with many accountants. In general, a bookkeeper’s primary goal is to maintain consistent records to make business management and accounting easier. While both deal with financial transactions, bookkeeping centers on the organization and recording of … Bookkeeping is simply the recording and monitoring of financial transactions. Bookkeeping refers to recording Financial transactions. An accountant works closely with the business owner or decision-maker to adjust budgets, file taxes, and strategize for financial success. Plus, you’ll have access to a dedicated team of bookkeeping and accounting professionals to help you optimize your financial strategy and keep track of your business transactions. Business owners can hire professional bookkeepers and accountants as part of their payroll, or hire an external team to fill these roles. Also, bookkeeping includes a financial reporting function of values and performance indicators for those who need information. So how can an accountant help my business with tax prep? Because of their additional education and certifications, accountants typically make a higher salary than bookkeepers. Below are some of the most common certifications for accountants. Both are tasked with the financial reporting and well-being of the business. By Derek Miller. In some states, a person must be a CPA in order to refer to themselves as accountants. Bookkeeping Vs. Accounting: The Differences And Similarities. Accounting, on the other hand, is primarily about processing the information produced by bookkeepers and, based on it, generating business insights and providing financial forecasts. Working with an accountant regularly ensures that you’ll recognize when you get to the point of needing a bookkeeper. We’re clearing up the important differences in the bookkeeping vs accounting dilemma to help small businesses, and their owners identify what kind of financial services they need. Bookkeeping vs Accounting: What’s the Difference? There’s not much room for error when it comes to managing your small business’ money. Typically accountants do not handle the actual bookkeeping tasks themselves, but rather serve as an analytical resource for business owners. Also, since accountants are typically knowledgeable about their clients’ personal financial situation as well as their business situation, some are becoming tax coaches and certified financial planners. Bookkeeping is the initial stage, in which we keep the record of income and expenditure, whereas in Accounting department accountants analyze the company’s financial activity and prepare reports. While bookkeepers organize data, accountants turn the data into valuable information. We’ll also discuss what business owners can expect when they hire for bookkeeping and accounting services. While this position may require some prior experience in office management and some knowledge of financial processes, there are not as many certifications available (or necessary) for bookkeeping. Bookkeeping vs Accounting. The bookkeeper is on the ground floor, managing the day-to-day transactions and looking out for changes to the organization or significant financial events that need to be addressed. They’ll also determine the estimated payments the client needs to pay throughout the upcoming year, and make any other recommendations for tax planning. They record financial transactions for businesses, typically using database and spreadsheet programs that have been selected and set up by an accountant. Even in the documents they prepare, there are differences between a bookkeeper vs accountant. In addition, they might provide reviewed financial statements in certain situations, like if the client is applying for a loan, or perform an audit of the financials. Bookkeepers have also often provided full back-office support, including invoicing clients, paying bills, and processing payroll. Qualified accountants typically hold a bachelor’s degree in accounting or finance, as well as some prior work experience in finance as they will be delivering financial advice. For others, a degree in accounting is all that is required. Now that you know the functions of bookkeeping and accounting as well as a little bit about their history, let’s discuss what the day-to-day responsibilities of a bookkeeper and accountant look like. Bookkeeping vs Accounting: What is bookkeeping? Both professions start by learning the basic principles of accounting and its applications. Bookkeepers generally hold an associate’s degree, or even a bachelor’s in business. Conversely, bookkeepers cannot be considered accountants, unless they have completed their degree in Accounting or Finance, and met other applicable certifications. His Enrolled Agent designation is the highest tax credential offered by the U.S Department of Treasury, providing unrestricted practice rights before the IRS. Staffing for both positions, taking on some of the responsibilities on your own, or finding a professional finance management service is best if you want to keep your small business prosperous. While these are extremely important roles to fill, few business owners actually understand the difference between bookkeeping and accounting. Many small business owners aren’t sure about the difference between bookkeeping vs. accounting. Remember, the bookkeeper compiles the financial data and the accountant makes sense of it and can help provide recommendations. A bookkeeper records and classifies a company’s daily financial transactions such as sales, payroll, payment of bills, etc. FinancePal offers accounting for small businesses so that business owners can get back to handling the other important facets of their business—  like growing profits and keeping customers happy. Bookkeeping vs Accounting. Thanks to Pacioli’s double-entry method, today’s small business owners can get a comprehensive look at where their business stands, with the help of a bookkeeping and accounting team. Bookkeeping is said to be transactional, meaning it deals with the day-to-day financial transactions and administration of a business. The client creates their own estimates and invoices, then receives payments against those... Expenses/Accounts Payable. Bookkeeping is typically seen as a process that deals largely with financial transactions and general business administration. If we compare bookkeeping vs accounting, bookkeeping covers the problem of measuring the financial impact of economic activities. When choosing an accounting professional, whether a bookkeeper or an accountant, Debra and Hal offer this advice: You can also find qualified bookkeepers and accountants through your local Small Business Development Center office or through professional bookkeepers associations like ICBUSA and your state’s Board of Accountancy website. As mention, there are some additional certifications accountants can obtain if they wish to advance their expertise. If you’re a small business owner you likely have someone on staff (or even yourself) managing your company’s financial records and budget. After starting his career as a financial analyst in New York City, Jacob returned to Chicago and co-founded FinancePal in 2015. Bookkeeping vs. Accounting: The Basics The TL;DR version goes like this. Accountants may be responsible for creating yearly budgets, analyzing business operation costs, and completing tax paperwork. Although the terms are used interchangeably they actually refer to … At Behind the Scenes Financial Services, Debra focuses on the bookkeeping and processes for clients, while Hal handles the tax side of the business. But as your business grows and becomes more complex, you’ll want to seek out a full charge bookkeeper. Let’s take a look at some examples of a bookkeeper’s daily tasks. Bookkeepers and accountants have similar educational backgrounds. The bookkeeper then pays the vendor bill through Bill.com, which syncs the bill and bill payment to their accounting software. According to PayScale, the average salary for a bookkeeper is $41, 244 while for accountants the average is $50, 420. Other tasks usually performed by a bookkeeper include: Accountants have traditionally taken more of an advisory role with business owners. Finally, a good bookkeeper or accountant knows their worth, and they will charge for it—don’t choose someone simply because they are cheap—you’ll end up paying more in the long run. The bookkeeper gets notified when the vendors email or fax their bills directly to the client’s Bill.com account, and then assign the proper vendor, expense category, and client as an approver. Accounting and bookkeeping are two important processes that small business owners utilize to ensure their financial information is correct. An accountant might do some bookkeeping, but given their higher rates this isn’t the best use of their time. Bookkeeping and accounting are both essential to your small business. When you’re working with an already limited budget and narrow profit margins, staying on top of your expenses is one of the most important responsibilities of owning a business. 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