Why Your Accountant Shouldn’t Do Your Bookkeeping

Accountants and bookkeepers have two very different job descriptions.

These professions may look similar, but bookkeepers are generally responsible for the accurate recording and classification of all financial transactions. Accountants, on the other hand, create reports to interpret those transactions and usually do tax preparation.

While most businesses consult with an outside accountant once a year, primarily during tax time, a bookkeeper manages and ensures proper account balances monthly, weekly, or even daily.

Your accountant shouldn't do your bookkeeping

Sometimes these lines are blurred (some accountants take on bookkeeping work and some bookkeepers, like myself, go beyond basic transaction recording), but there are three primary reasons you shouldn’t ask your accountant to do your bookkeeping:

1: Attention to Detail

As mentioned above, most businesses only consult with their accountant around tax time. This means they are only seeing your books once a year and are not receiving day-to-day insight into your business transactions.

Unfortunately, that also means they won’t have the time or awareness to fully reconcile your accounts and ensure all of your transactions are accounted for. Instead, they’ll likely do the basics to pull the numbers needed to complete your tax forms.

2: Timeliness

January-April is a busy time of year for accountants. While you should be working year-round to keep your bookkeeping on track, this time is especially important to ensure everything is in order. Bookkeeping tasks are not typically a priority for accountants whose main focus is to file your taxes.

Falling to a lower priority may mean your books are not kept up-to-date, your books are not ready in time to file, and you may not get your important questions answered.

3: Cost

If your accountant has done your taxes in the past, you likely remember the bill you received. Now imagine paying that every month (or even weekly) as they’re reconciling your accounts. The cost per hour for an accountant is typically higher than that of a bookkeeper. Many accountants also charge you for time they spend answering your questions, and that adds up!

As bookkeeping can be very time-intensive, hiring a bookkeeper will not only cost you less, but you’ll receive their expertise year-round.

 

Ready to give your business the benefit of working with an affordable professional for always tax ready books? Fill out this short form at to schedule a free, no pressure bookkeeping consultation.

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