Many small businesses here in the Des Moines Region are fortunate in that they have a bookkeeper while also taking advantage of the council and expertise of an accountant. So what’s the difference between a bookkeeper and an accountant, and why are certain businesses fortunate in having access to both? The answer to this question is important not only in that it distinguishes the differences in duties between the two, but it also serves as an important reminder of why certain tasks are okay to leave in the hands of a bookkeeper, while others should only be performed by a Des Moines accountant.

Typical Financial Tasks Performed by Bookkeepers

The name pretty much says it all: Bookkeepers keep the books. This may or may not be based upon procedures they have put in place, however adhering to and maintaining these procedures and systems are important as they pertain to the following list of tasks they typically perform.

• Preparing and keeping track of customer invoices and payments.
• Preparing and keeping track of the business payroll.
• Keeping track of cash expenditures.
• Maintaining and reconciling the business banking accounts.

Typical Financial Task Performed by Accountants

Due to their higher level of education and experience in financial matters, Des Moines accountants are, of course, thoroughly qualified to perform the same tasks, listed above, as are bookkeepers. And it is not uncommon for small businesses to hire Des Moines accounting firms to handle all of their financial needs, thus dispensing with the need for bookkeepers at all. In addition to the basics, Des Moines accountants also:

• Prepare financial statements for the business.
• Preparing tax returns and handling tax planning for the business.
• Advising the business owner in matters of structuring the business, tax laws and on important financial decisions.

While this division of labor is not set in stone and given there are obvious places where duties might cross over, it should be obvious that when it comes to taxes, financial statements, and in consultations about critical financial decisions, these matters should always be left to a Des Moines accountant. Also important to mention is that start-up businesses should always consult with a Des Moines accountant prior to starting their business to ensure they choose the right business entity and are thoroughly briefed on their tax obligations.

Since 2004, CustomOne CFO & Controllers has provided area small businesses with the highest level of Des Moines accountants. Whether it be for an initial consultation prior to starting a new business, or for expanding the level of accurate and professional financial services available to an existing enterprise, small businesses should contact them today for a free consultation.

Accounting for Small Business 101: Four Basic Accounts Every Small Business Should Have

customonecfo

See Full Bio