Even though they are different words with different meanings, most people use them intermittently. But even though they have similarities, the accounting and bookkeeping services differ. If you have a business, it’s vital to understand the differences and ensure you find the best bookkeeping in Houston.
This article is the perfect place to start if you need bookkeeping in Houston. First, you must learn what makes these services different from accounting. You will also find out the benefits of these types of services and how to find the best options in the area.
You Must First Understand the Definition and Scope of Accounting and Bookkeeping Services
Accounting and bookkeeping services are essential for the smooth operation of any business. Not only will they provide you with valuable information that can be used to make better decisions in the future, but they are also mandatory for tax purposes. Let’s see the basics about each one of them.
Bookkeeping is recording financial transactions and maintaining accurate and up-to-date financial records. This is all it does. For some businesses, this is enough, while others must also use accounting services.
Accounting can also include recording and maintaining financial records, but it won’t be as specialized as bookkeeping. Moreover, it also takes care of classifying and summarizing the transactions of a business.
A reliable accountant will prepare financial statements, balance sheets, and income statements. As mentioned, you will use them for both tax purposes and to make better decisions. As you can see, being an accountant requires more knowledge and expertise, but the prices are also higher.
What Are the Education and Certification Requirements to Provide Accounting and Bookkeeping Services?
One must have a degree in accounting or a related field to provide accounting and bookkeeping services. As you can imagine, it takes years to become fully qualified, and having experience is mandatory for efficiency. For these reasons, you will need to take some time and check these qualifications while looking for a bookkeeper.
If you need an accountant, you must ensure he has a Certified Public Accountant license because it’s required to provide accounting services legally. Luckily, you can find many professionals for this task and bookkeeping online, where you can also check their qualifications.
On the other hand, a bookkeeper does not necessarily require a degree, but certification from a recognized institution is beneficial. No one wants to work with an amateur, and you should also do so. It’s better to look for professionals. You need at least someone that has some experience in the field.
The Roles and Responsibilities of Accounting and Bookkeeping in Houston Are Different
The roles and responsibilities of accounting and bookkeeping in Houston are different. It is ideal for a company to have two professionals prepared. Having one for each set of tasks will help you so much more in the future.
Starting with a CPA, he will provide you with accounting services such as auditing, tax preparation, and financial statement preparation. As such, you won’t have to worry about your taxes anymore. You only need to listen to the advice you get in this regard, and everything else can be taken care of.
What advice? Accountants can also provide financial advice to clients and ensure compliance with relevant laws and regulations. Otherwise, you may make mistakes and be punished, costing your company money. Who would want to waste money like that? It’s much better to let a professional help and keep you informed.
What about the bookkeeper? He will handle the day-to-day financial transactions, such as recording invoices and bills and reconciling bank statements. It may seem more straightforward, but the work volume can be much higher, depending on your company’s level.
Knowing the Complexity of Both Accounting and Bookkeeping in Houston Is Vital
Both accounting and bookkeeping in Houston require a thorough understanding of financial principles, accounting software, and legal requirements. That’s why you should never work with amateurs, and it’s vital to look for professionals and have a bit of understanding in these fields yourself.
It’s good to know that accounting services require more expertise and knowledge than bookkeeping. For this reason, they are also usually more expensive. Even when their offer bookkeeping services, their price may be higher than the others, but not as high as their CPA services.
The main reasons for the difference in prices are the tasks like analyzing financial data, preparing tax returns, and taking care of financial statements. All of which require focus and complete understanding.
On the other hand, bookkeeping is a more straightforward process involving keeping financial records up-to-date. The focus required is not as intense, but the menial tasks could be many more. As a result, much attention is necessary to avoid making mistakes.
You Should Also Have a Basic Idea About the Legal Requirements of Accounting and Bookkeeping
It’s vital to understand that accounting and bookkeeping are subject to legal requirements in Houston. Without regulation, the law won’t allow professionals to do things as they wish. It’s a good idea for you to check these laws before you start searching for bookkeepers.
The Texas State Board of Public Accountancy oversees the licensing of CPAs which helps the industry to keep itself clean and capable. They also have rules and requirements, which you should check to understand the profession better and have better interactions with your accountant.
Bookkeepers must not be licensed but adhere to specific legal requirements regarding financial records and taxes. Even though the rules are not as intense, they are still strict and must be respected. You must ensure the bookkeeper you work with fully understands this fact.
Even though you will leave most matters in the hand of professionals, it’s still essential to have a basic understanding of these legal requirements to ensure compliance and avoid penalties. You can check the work done by the accountant or bookkeeper and see if everything is done correctly.