Posted on August 12, 2013
Written by Avner Polatsek | @AvnerPolatsek
At AP Tax, we offer accounting services, like preparing tax returns, but we also provide bookkeeping in Toronto. One of the questions we are regularly asked is whether or not a business needs an accountant or a bookkeeper (most likely, both).
We think that the main reason that we’re asked this question is that the definition of these two roles is a little blurry. Why hire a bookkeeper when you already have an accountant?
The main difference between an accountant and a bookkeeper is that an accountant looks at the big picture of your business and can advise you on financial strategy, especially when it comes to tax time. A bookkeeper is involved in the day-to-day activities of your business and keeps track of your income and expenses. They might even manage your payroll and take care of your accounts receivable and accounts payable. In other words, a bookkeeper follows through with the strategy your accountant creates.
The answer to this question really depends on you, the business owner. Some people hire a bookkeeper as soon as they start a business because they know that they want to have accurate and tidy books right from the beginning. Others do their own until they get too big to do manage.
Because bookkeepers can usually be hired for as many hours as you need them on a weekly or monthly basis, you can have quite a bit of control over how much of an expense they will be.
Out of all of these reasons you might want to hire a bookkeeper, accuracy is probably the one you should be looking at first. Incorrect books could be affecting the tax that you’ll pay and will definitely jack up your accounting bill at tax time.
Contact us if you would like to meet one of our bookkeepers and hear more about how they can put your books in order.