While bookkeeping is about recording and categorizing daily financial transactions, accounting takes it further by interpreting, analyzing, classifying, reporting, and summarizing financial data to provide meaningful insights for business decision-making. 

Bookkeeping is indeed more reactive, as it involves the day-to-day recording of financial transactions, ensuring accuracy and compliance. On the other hand, accounting is a proactive process that goes beyond mere data entry. Accountants use the financial information bookkeepers generate to analyze the business's financial health, identify trends, and forecast future financial needs. This proactive approach helps business owners and management make informed decisions to support the company's growth and success.

As your business grows, you will eventually outgrow basic bookkeeping services and require a qualified professional such as an accountant, staff accountant, senior accountant, or accounting manager to build a financial intelligence system to support your growing operations. The payoff? These professionals can help you make sound business decisions. 

What does an Accountant (non-CPA) do?

• Accountants are a step above bookkeepers and full-charge bookkeepers.

• Bookkeepers focus more on daily responsibilities, whereas accountants provide overarching financial advice and tax guidance while ensuring GAAP compliance.

• An accountant can analyze your finances and offer strategic advice in return.

• Accountants use information compiled by a full charge/bookkeeper to build budgets/projections, analyses, and complex reconciliations, identify trends, and help make business decisions.

• Accountants are qualified to prepare and interpret a variety of financial statements and provide advice and consultative services.

• Accountants maintain capital expenditures, including new additions/disposals, post-depreciation, and loan amortizations.

• Accountants provide adjustment entries, trial balances, monthly/annual closes, and prepare tax returns.

• Accountants maintain knowledge of technical accounting procedures and tax laws.

• Accountants must possess a bachelor's degree in Accounting and may be titled Staff or Senior Accountants based on experience.

Why or when do I need an Accountant?

• "If" money is not a significant consideration, you should look to hire an accountant rather than a bookkeeper or full-charge bookkeeper if your new/startup business expansion is progressing rapidly.

• You want to learn more about your business's accounting & financial activities (assets, liabilities, equity, revenues, expenses, taxes, GAAP compliance, etc.).

• You want to understand your financial performance more deeply via your profit & loss, balance sheet, and cash flow statements.

• It's time to hire an accountant if you find yourself calling or contracting these professionals more frequently because your bookkeeper cannot provide you with the breadth of financial information required.

• It's time to hire an accountant if your bookkeeper cannot keep up with OR understand accounting tasks as your business expands and becomes more complex.

Rapidly evolving commerce coupled with the daily technological advancements and industrial, economic, and political developments worldwide has generated a need for specialized branches (or types or methods) of Accounting over time. While the list is not exhaustive, the following branches of Accounting are well established and governed by the Generally Accepted Accounting Principles (GAAP) developed by the Financial Accounting Standards Board (FASB); 

• Financial Accounting

• Managerial Accounting

• Cost Accounting

• Auditing

• Forensic Accounting

• Tax Accounting

• Government Accounting

• Fiduciary Accounting

• Fund Accounting

• Project Accounting

• Political Campaign Accounting

• International Accounting

Although an accountant may shine through as a well-trained and experienced individual, confirming their qualifications/background match your specific business type is always prudent to reap maximum results. For example, hiring an accountant with a cost accounting background would serve you better than a Fund Accountant if you have a manufacturing business.

 YBL's Fractional Controller/CFO service professionals are happy to design a custom package to address your higher-level technical accounting needs.