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Traditional accounting requires three things:  an accounting system, a bookkeeper and an accounting firm.  All of these cost business owners money and time.  First, you have to find the right accounting system, whether it is electronic or paper-based.  Then, you have to learn the system or hire a bookkeeper to learn it for you.  You still need an accounting firm for filing taxes and answering questions.  What if you could reduce the three requirements to one?

Many businesses rank accounting as the number one most important service to their success. Accountants rank above IT managers, bankers, lawyers, and other staff, by a margin.

Why?

Accurate bookkeeping is critical to the success of every small business.  Simple bookkeeping mistakes are, unfortunately, more common than many business owners realize—and they can be costly.  The frequent bookkeeping problems which are the result of simple human error leave small business owners frustrated, confused and looking for answers.  As All Business explains:

Bookkeeping and accounting are two critical aspects of business operations in any industry. Bookkeepers and accountants help business owners and executives to keep track of expenses, make informed business decisions, and potentially avoid serious issues such as fraud and embezzlement.

If you are starting a business, you will be looking into accounting and bookkeeping help, but to outsiders, the two often look like the same thing. Both professions involve recording and handling money, and both provide vital services for a business. Understanding the difference between bookkeeping vs accounting can help you make sure that your finances are healthy and that you hire or outsource the right kind of help for your business.