The idea of an on-site bookkeeper who handles your accounts is an old one. Increasingly, businesses are using virtual accounting and virtual bookkeeping services. There is no comparison between these services and an on-site accountant. Besides that, you also benefit from many other things. Providing expert online accounting services along with bookkeeping to non-profit organizations, small businesses, entrepreneurs, and self-employed individuals is what we do at Adequate Bookkeeping.
Our virtual bookkeeping services are regarded as cost-effective. In this way, management is relieved of some of the daily challenges they face, and accounting tasks are completed faster.
In business, especially for startups and SMBs, accountants and bookkeepers often mean the same thing. This is an error. These two terms are not synonymous. The two professions are distinct, and they each offer specific financial services. However, there are companies that offer online accounting as well as bookkeeping services.
Differences between Virtual Bookkeepers and Virtual Accountants
Now that that’s clear, let’s understand what constitutes a virtual bookkeeper and who constitutes a virtual accountant.
A virtual bookkeeper:
You can use these to keep track of your business’s day-to-day transactions. This includes all the money that comes in from sales and purchases as well as the money that leaves through payroll and taxes. You have to record everything that affects your bottom line.
Bookkeeping is a transactional and administrative role that handles the day-to-day tasks of recording financial transactions, including purchases, receipts, sales, and payments. Accounting is more subjective, providing business owners with financial insights based on information gleaned from their bookkeeping data.
“Bookkeeping is designed to generate data about the activities of an organization,” said D’Arcy Becker, chair and professor in the University of Wisconsin Whitewater Department of Accounting. “Accounting is designed to turn data into information.”
A virtual accountant:
These help you make better and smarter financial decisions based on your financial data. Their responsibilities include looking at the broader picture, generating financial reports, forecasting trends, and making recommendations.
Consider the bookkeeper as a basketball player for a better understanding of the differences. It is the coach in this scenario who is the accountant.
Does a business have the option of using one over the other? The role of a virtual accountant and that of a bookkeeper are not mutually exclusive. Working with both of them will result in the best results for your company.