Bookkeeping is a foundation for accounting. Bookkeeping is the recording of income and expenses for a business. Accounting takes a subjective look at that data to see what it means for your business. Accounting creates financial reports and statements with the information provided by bookkeeping.

This sounds like whole lot of fun, doesn’t it? No? It’s ok. You’re not the only one who doesn’t find this as exciting as I do. Fun fact: accountants can be bookkeepers, but bookkeepers cannot be accountants.

Most business owners are busy with managing their everyday business affairs and don’t have time (or enough time) to do their books. Over time this can cause data loss (such as receipts being lost) and inaccurate financial statements. If this happens, a business could possibly lose vital relevant business deductions or even possibly understate their earnings (you can image how upsetting that is to the IRS!).

So, to avoid this from happening most businesses either hire a full-time employee, or to save money, pay to outsource their bookkeeping and/or accounting services. This allows business owners to dedicate their time to managing daily business affairs and grow their business to it’s full potential.