Accounting vs. Bookkeeping: What’s the Difference?
A lot goes into the financials behind a nonprofit or business, including bookkeeping and accounting. While the terms are often used interchangeably, the roles are distinct. Knowing the difference between accounting and bookkeeping can support your success.
Bookkeeping focuses on the minute details of your finances, while accounting looks at the big picture through a strategic or advisory lens. Accountants can be bookkeepers, but not all bookkeepers can be accountants. Both jobs require skills with numbers and financial data.
What Is Bookkeeping?
Bookkeeping is the daily financial tracking of transactions, typically through bookkeeping software. This administrative role doesn’t necessarily require specific accounting expertise, though many bookkeepers have at least a college education, which may include training or classes in accounting.
Bookkeepers must pay attention to details to monitor financial information and catch small mistakes in a budget or invoice. The duties of a bookkeeper might include tasks like:
- Managing payroll
- Tracking bill payments
- Posting debits and credits
- Producing invoices
- Recording financial transactions
- Maintaining and balancing ledgers
- Conducting bank reconciliations
What Is Accounting?
Accounting focuses more on overarching financial management than day-to-day tracking. This job includes trained professional services that provide a more complete summary of your finances. Accountants take the financial statements from bookkeepers and use them to analyze broad trends. An accountant offers professional advice and guidance about your financial well-being and assists with various practical business tasks.
Accountants need specialized training, particularly certified public accountants (CPAs). These financial experts often handle tasks like:
- Budget management and changes
- Tax filing and returns
- Business operation analysis and advising
- Generating financial reports
- Preparing tax returns, income statements and balance sheets
Why Trust Marshall Jones?
We are an outsourced accounting and bookkeeping firm that has worked in the financial industry since 1984. Our team consists of various experts, including CPAs and advisors. We also have bookkeeping and accounting specialists who handle these services for our clients.
You can trust us to educate you about various financial services and to provide them reliably on your behalf. Our core values are service, integrity and quality. We work hard to fulfill your needs, always acting reasonably and professionally. As a team, we take pride in our passion for excellence in every aspect of our work. Our accounting and bookkeeping expertise covers various industries, including nonprofits and small to midsize businesses.
Turn to Us for Services
Marshall Jones provides bookkeeping and accounting services depending on your needs. We can manage your financials from the small details to the big picture to save you time and enhance your business operations. Contact us online to discuss our services today.
