SSS BookKeeping

Bookkeeping in Calgary

Bookkeeping vs. Accounting: Understanding the Key Differences

Many Calgary business owners understand that bookkeeping and accounting are linked to finance but may not fully grasp the distinction between the two. While these fields are crucial for business finance and achieving goals, it’s essential to clarify any misconceptions. Read this article for a better understanding.

What is Accounting?

Accounting is basically a specific procedure that involves recording and categorizing a company’s financial transactions and thoroughly analyzing and reporting its financial activities. The experts mainly analyze the balance sheets, income, and cash flow statements, and other reports. This information is extremely important for business owners because they several things including,

  • Maximize profitability
  • Evaluate staffing and payroll
  • Manage cash flow
  • Analyze the financial health of the business
  • Investigate new business opportunities

What is Bookkeeping?

Bookkeeping in Calgary involves recording daily financial transactions and using various techniques. It’s vital for your accounting process as updated records help generate accurate financial reports and measure business performance. Detailed records are also useful in case of a tax audit.

What are the Differences Between Bookkeeping and Accounting?

Common Roles in Bookkeeping

Bookkeeping professionals in Calgary maintain accurate and up-to-date financial information and record daily transactions, such as

  • Purchases
  • Payments
  • Receipts
  • sales

Professional bookkeeping experts organize this data in journals or ledgers, classify transactions, produce invoices, manage payments, and reconcile bank statements. In addition, bookkeepers prepare other financial statements like equity and profit and loss reports and balance accounts and provide summaries.

These statements offer a quick overview of a company’s financial health. Without professional bookkeepers, businesses would lack reliable records and an understanding of their performance.

What are the Common Roles in Accounting?

Accountants use financial records to provide information to management, investors, and government agencies. Their work helps stakeholders make informed decisions, improve company performance, and increase profits.

Hiring expert accountants is necessary if you want to increase your business growth. They do several works, such as,

  • Generate financial statements
  • Analyze past performance
  • Make future projections
  • File taxes
  • Offer strategic advice for growth.

These insights inform management’s strategy, highlight risks or opportunities, and optimize performance.

Get in Touch with Us!

There is no doubt that expert bookkeeping and accounting are mandatory for long-term business growth. If you want to hire experts for your business, call us at SSS Book Keeping in Calgary.

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