Bookkeepers and Accountants Work Hand-in-Hand

financial paperwork

When you go to the dentist, your hygienist cleans your teeth, and then after they are done, the dentist comes in to make sure everything is OK. It makes sense for the hygienist, who is particularly skilled at cleaning teeth, to do that part, and the dentist, who has the big dental picture in mind, to take a quick look and ask the hygienist if there were any concerns.

This system makes sense for economic reasons as well. The hygienist has less training than the dentist, and is therefore less expensive.

That’s kind of how bookkeepers and accountants dovetail.

Bookkeepers keep track of your day-to-day financial transactions, cleaning up errors or omissions, paying careful attention to every detail. They come to know your business very well, and can quickly spot anything that doesn’t seem right.

Their job is to provide regular, timely, accurate reports to help you make smart decisions every month of the year.

Then, at tax time, your accountant can easily file your taxes with the information provided by the detail-oriented bookkeeper.

The accountant, like the dentist, is more highly trained, and therefore, more expensive. Your bookkeeper doesn’t NEED to know everything the accountant does, but conscientious work on the bookkeeper’s part makes the accountant’s job simpler (also saving you money). Expert bookkeeping will also help prevent you from being audited.

Accountants appreciate good bookkeepers and vice versa. Each complements the work of the other to help their clients thrive.

Save Money by Taking Advantage of Each Role’s Strengths

When you have your accountant handle the recording of daily income and expenses, you are paying too much, and not making the best use of their strengths. They have the latest insights on tax rules and deductions, and are best consulted to help you pay only what you owe.

 The bookkeeper’s strength is information that can help you manage cash flow better or make adjustments to increase your bottom line. They can make sure you avoid:

  • missing bank errors,
  • duplicate charges,
  • extra hidden fees you weren’t aware of, or
  • perhaps even lost deposits.

A bookkeeper’s job, among other things, is to make sure every transaction is recorded and categorized properly, and all bank accounts are reconciled correctly.

Your accountant will assume the information you provide is accurate (and it will be with a reputable bookkeeper) and then work with that information to file your tax return and provide an objective analysis of the health of your business.

Using Both Provides Checks and Balances

Two sets of eyes are another benefit of having a separate accountant and bookkeeper. The bookkeeper presents a clean package of financial data to the accountant. The accountant offers a fresh pair of eyes and can provide insight and advice with that well-organized data.

BookWerksTM charges clients a flat monthly rate for a package of services customized to their business. It isn’t anywhere near what you would pay hourly for an accountant to do bookkeeping.

An outsourced bookkeeper for everyday record-keeping and an accountant for taxes and big-picture guidance is the most cost-efficient model for small businesses.

Superior Bookkeeping is Smart Business

A good bookkeeper will enable:

  • better budgeting decisions, by knowing exactly where the bulk of your money is going;
  • peace of mind, assuring your books are in order for tax time;
  • less chance of an audit, with detailed IRS-required documentation;
  • better understanding of the seasonal flow of your business; and
  • a better grasp on the key metrics of your financial health.

A great bookkeeper will work with your accountant to take the stress out of paying taxes.

If you’re ready to explore using an affordable, expert Cincinnati bookkeeping service, let’s talk!