Do I need a bookkeeper and an accountant?
Bookkeeping keeps the underlying financial records accurate and current. Accounting turns those records into statutory accounts, tax returns and other formal reporting.
They are different jobs
Bookkeeping keeps the underlying financial records accurate and current. Accounting turns those records into statutory accounts, tax returns and other formal reporting. In a well-run finance function the two should connect rather than operate as separate annual exercises.
When both matter
If you have regular transactions, VAT, payroll, staff or meaningful decisions to make during the year, accurate bookkeeping is what makes reliable accounting possible. Waiting until year end to reconstruct twelve months of activity is slower and gives you no useful information while the year is happening.
Does it need to be two different firms?
They do not have to be separate providers. Having bookkeeping and accounting under one roof can reduce handovers, duplicated questions and the risk that each side assumes the other has dealt with something.
As the business grows
As the business grows, you may need more than bookkeeping and compliance accounting. Management accounts, cash forecasting and strategic support are the next layer when you need the numbers to help decide what happens next.
Related questions
Outsourced Finance & Bookkeeping
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