The Essentials of Bookkeeping for Small Business (No Calculator Required)
By Brielle Marcoux, CPA
CEO of Easeify Bookkeeping
Bookkeeping is one of the most important aspects of running a small business, but it doesn’t always require a calculator or complex accounting knowledge. In this article, we’ll dive into the key differences between a bookkeeper and a CPA, explore the benefits of hiring a bookkeeper, and help you determine whether outsourcing your bookkeeping is the right move for your business.
What is Bookkeeping?
Bookkeeping is the process of recording and managing all the financial transactions of a business. It involves tracking income, expenses, assets, liabilities, and equity. Good bookkeeping ensures that your financial records are correct, organized, and accessible.
CPA vs. Bookkeeper: What is the Difference?
While both bookkeepers and CPAs (Certified Public Accountants) play important roles in managing a business’s finances, their responsibilities differ.
Bookkeeper: Primarily focuses on daily financial tasks such as recording transactions, reconciling accounts, and maintaining financial ledgers. Bookkeepers keep your financial records updated and accurate. No license or specific education is required for someone to call themselves a bookkeeper. But, not all bookkeepers are equal.
CPA: A licensed accounting professional who may specialize in a particular area of accounting such as tax or audit, and/or may offer bookkeeping services. CPAs who provide tax services use the data from bookkeepers to prepare tax returns and give strategic advice. When it comes to bookkeeping, having a CPA complete your books is usually more trusted as they will know more about what can be written off, and how to better keep your books for tax purposes.
Put simply, bookkeepers handle the day-to-day financial groundwork while CPAs offer insights and ensure compliance with tax laws. But, many CPAs offer bookkeeping services and that is usually the better choice to ensure your books are done correctly.
Do I Need to Hire a Bookkeeper?
If you are debating whether or not to hire a bookkeeper for your business, there are a few factors you should consider before making your decision:
Size and Complexity of Your Business: When your business has multiple revenue streams or complex financial transactions, a bookkeeper can save you time and reduce errors.
Time Constraints: If managing your books on your own feels too stressful or takes you away from core business activities, outsourcing it may be worthwhile.
Budget: Determine whether you can afford to invest in a professional bookkeeper or if you are better off managing your books on your own until your business grows.
If you are not ready to hire yet, you can still implement basic bookkeeping practices such as categorizing your transactions on a regular basis.
ABOUT THE AUTHOR
Brielle Marcoux is a CPA and the CEO of Easeify. Headquartered in Tennessee, she specializes in working with small businesses in QuickBooks Online. She offers one-time cleanup services and monthly bookkeeping services and works closely with BWM on their bookkeeping needs too! Are you interested in cleaning up your bookkeeping act? Brielle is ready to help the BWM community! Contact her to get started!
