As a small business owner, you need your financial data to be current and accurate so you can make good business decisions and ensure you have a healthy cash flow. But as your business grows and you take on more customers, vendors, and employees, keeping track of how much money you have coming in and going out of your business gets complex – and time-consuming.  When the accounting tasks for your small business are too much to handle by yourself, it's time to hire help. But do you need an accountant or a bookkeeper?

When operating a small business you actually need both.  An accountant can analyze your financial situation and offer strategic advice in addition to filing your tax returns. A bookkeeper handles the day-to-day tasks of recording your company’s expenses and income, along with reconciling your bank and credit card statements each month. Bookkeepers are, generally speaking, less expensive than CPAs, which makes them a great choice for a company that needs day-to-day expertise.  It’s much more economical to have your bookkeeper send your accountant your financial records at the end of the year vs. bringing a year’s worth of receipts and papers to your accountant for sorting and data entry.

Books that are set up correctly can be a strong tool for measurement and growth. Books measure the pulse of a business, and good bookkeeping expands past basic cash expenses.  A good bookkeeper can also bring attention to something that might need higher levels of advice.