Accounting has often been called the ‘language of business’ (BTW - those who speak English are fortunate that English has become the de facto language of international business!). It’s also been called the ‘heart of business management’. This is usually because of its role in recording and communicating business information.
All transactions that have a financial impact eventually get recorded (or should get recorded – a topic for another day) in the financial records. This is the definition of bookkeeping. It’s important to have both good bookkeeping and accounting. It’s important to hire a good bookkeeper or do it yourself if you have a small company and the inclination.
So what is accounting”? What’s the difference between accounting and bookkeeping? Many people get this confused but it’s important to know the difference. Bookkeepers record data based on financial events such as sales or various kinds of expenses. Accountants classify, summarize, interpret and report data to owners and managers.
Business coach, Steve Scott, http://thehoustonbusinesscoach.com/blog/tag/personal-business-coach says “To be successful you need accounting and accountability. Accounting is important because it tells you where you have been. Accountability tells you what you have been doing. It explains the numbers behind where you have been and tells you what you need to do in order to get where you want to go.”
At Gary & Graessle, CPAs, we pay special attention to the tax rules (i.e. tax accounting) and the correct classification of accounting in the monthly accounting (i.e. financial accounting) and other services that we provide to our monthly clients. Our clients ‘sleep better’ because they know that they get monthly statements that are materially correct, will be in a similar format as their tax return, like our business focused input, and appreciate being able to produce a compiled financial statement upon request (i.e. less than one month old) to their bankers, spouses, or anyone else they choose.
Nate
Nate Graessle, CPA
Gary & Graessle, CPAs
Your Accounting (& Taxes) Made Simple
Nate
Nate Graessle, CPA
Gary & Graessle, CPAs
Your Accounting (& Taxes) Made Simple
Pursuant to IRS Circular 230, the Internal Revenue Service requires us to inform you that any tax advice included herein is not intended or written to be used, and it cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed by the IRS on the taxpayer. That said, please do not hesitate to contact us if you have any further questions regarding this matter.
