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What’s the difference between Bookkeeping and Accounting? Isn’t it the same thing?

Absolutely not!  While they are related, they are not the same thing.  Your accountant can do your bookkeeping, but a bookkeeper that isn’t a CPA should not do your accounting.  In general, an accountant prepares your books for external review.  External review can be anything from your taxes (the IRS is definitely an external force) to the banker reviewing your financial statements to see if he will give you a loan.  An accountant can prepare audited financial statements, usually for said banker, and ensure that your accounting meets generally accepted accounting principles (GAAP).  A bookkeeper takes care of the day to day of keeping your financial records straight.  She puts your transactions in your accounting software, reconciles your accounts, makes journal entries for depreciation and the like.  She even prepares financial statements for internal review.  Meaning that she can give you a picture of how your company is doing.  She should also be making sure you are keeping receipts, tracking assets and liabilities and work with your accountant to provide so he can do his job as efficiently as possible.  Oh, and if you have your accountant do your bookkeeping, it is likely going to be much more expensive than if you hire a bookkeeper.

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