Do You Know The Difference Between Bookkeeping And Accounting?

1. Do You Know The Difference Between Bookkeeping And Accounting? Bookkeeping and accounting are probably two of the business functions that most small- to medium-sized business owners dread. In fact, many are completely oblivious to the difference between the two. That is why here at One Abacus, we offer competitive packages for sole traders, limited companies and those required to complete an annual self- assessment. We understand that bookkeeping and accounting can be a huge headache for those who simply do not know how to tell the two functions apart. Do you? Bookkeeping The function of bookkeeping is to record daily transactions and is generally comprised of posting debits and credits, creating invoices, maintaining a general ledger, balancing bank statements, and running a payroll. All sales and expenses transactions are recorded by the person in charge of bookkeeping,which is a crucial role as it helps to ensure that all financial information is accurate. These days, most bookkeeping is done through accounting software packages, and increasingly, customers are opting for online packages. One Abacus provides a cloud- based accounting package for customers that can be accessed at any time.

2. Accounting It is common for individuals to confuse bookkeeping and accounting, but there are significant differences between the two. Accounting is the process of manipulating the bookkeeping information to produce various financial documents. These documents then form the basis of returns provided to HMRC. The role of the accountant is to record expenses that do not form part of the bookkeeping process, prepare financial statements, analyse the company’s financial status in terms of operating costs, and complete income tax returns. Outsourcing Bookkeeping and Accounts It is easy to see why so many business owners struggle with their company finances. It is a complex job that requires training. We believe that customers should not fret about their business finances, especially when they can easily outsource this job. If you are worried about your year-end accounts, contact us for information about our packages. We can take care of your annual tax return and provide the software you need for recording daily transactions,from as little as £55 per month. This article originally published at One Abacus Blog http://oneabacus.com/do-you-know-the-difference-between-bookkeeping-and- accounting/