Are you a business owner? You might want to consider hiring the services of a bookkeeper or accountant.
Any start-up business in New Orleans will generally grow into a small business. When a business starts, it is common for the business owner to do the accounting duties for the business as well. However, once it grows into a small business, the duties may become too overwhelming for the business owner to handle by himself. This is the time when most business owners consider and search for help. A bookkeeper or an accountant can both help in this situation.
Difference Between Bookkeepers and Accountants
The job of an accountant and a bookkeeper are different even though they may overlap in some aspects. In New Orleans, a bookkeeper is responsible for the mechanical functions of maintaining various accounting records. A monthly schedule is followed and all transactions are entered into subsidiary ledgers. These are all then broken down into accounts receivable, accounts payable and payroll. In larger companies, each function is given to multiple employees for security reasons. However, in small companies, all functions are handled by one bookkeeper alone. If a bookkeeper is in charge of all functions and also handles monthly financial statements, he or she is called a full charge bookkeeper.
A New Orleans accountant is more involved in a higher level to look after the finances of the business. Subsidiary ledgers and general ledgers are compiled by accountants. They are also capable of designing and preparing reports that help managers in decision making regarding their business. Generally, an accountant can do what a bookkeeper does however; they usually delegate these kinds of tasks to employees of lower ranking.
When You Need Professional Service
Most businesses in New Orleans may be in need of employees that will handle their taxes for them. If you are one of those who are wondering if they need a bookkeeper or accountant for tax preparation, here are some things you must know. Although there are a lot of accountants that offer tax preparation services, it has already become its own track. Today, there are people who specialize in tax work but aren’t technically bookkeepers or accountants. The bottom line is that you should entrust this task to someone who specializes in this kind of work since there are always changes that go into effect annually, especially new laws.
If you own a small business in New Orleans and are unsure of which to hire since you cannot afford an accountant who can also do the work of a bookkeeper, a hybrid approach is recommended for you. You may opt to hire a bookkeeper to handle your day to day tasks and then outsource an accounting firm for your accounting needs. It is up to you if you are going to get CPAs or simply accountants who are experienced in small businesses. All in all, what’s important is for the work to be done and done properly.