Bookkeeping or Accounting? Which would you Outsource?

Bookkeeping and Accounting

For non-accountants, there will be a common confusion between Bookkeepers and Accountants job. Technically, both of them are involved in the whole accounting cycle, from record keeping, to financial analysis of the business.

But do not confuse yourselves, both of these fall under different methods and process. Especially those who are thinking of outsourcing bookkeeping or accounting.

Bookkeeping is the groundwork of the organization’s accounting cycle, bookkeepers handles the daily financial transactions, from receipts, sales and payments. Everything is being recorded in a chronological manner on journals, ledgers, or bookkeeping software. These records are used as supporting data and documents of the organization’s financial statements.

Bookkeepers may be non-accountant graduates, but are trained with data-entry tasks and have gained experience throughout their career.

On the other hand, accounting is another story. Accounting in the organization is done by accounting graduates or licensed professional accountants. This requires more diverse and technical skill. Accountants reads throughout the records, and then perform various methods like financial analysis, auditing, balance sheet, and creating financial reports.

These records hold the key to the organization’s financial success. The bookkeepers and accountants are both critical for the organization.

When you plan to outsource these tasks, it is highly recommended that you choose the proper service providers. Check onto your providers the level of their staffs, their background experiences, and how well the company can provide support for you. These are critical tasks, and you don’t want them to be messed up.

Do not be afraid to turn into outsourcing, besides, outsourcing financial tasks can still help you tone down your budget when hiring staff. Directly hiring professionals with these skills does not come cheap, if you are a small organization, it is better to turn into outsource providers, with the right kind of people that will work for you, things will be smooth.