An accountant analyses and provides insights into a company’s financial performance, holds advanced degrees, and provides higher-level financial analysis and strategic planning. A bookkeeper, on the other hand, records and organises financial transactions, maintains accurate financial records, and focuses on day-to-day financial transactions.
Bookkeeping software offers benefits such as increased efficiency, improved accuracy, reduced workload, streamlined financial reporting, and better financial decision-making. It automates repetitive tasks, reduces errors, provides real-time access to financial information, and generates customizable financial reports for analysis and decision-making.
In business, it is recommended to update your books on a regular basis to ensure accuracy and financial stability. This can be done daily, weekly, or monthly, depending on the volume and complexity of your financial transactions. By updating your books regularly, you can stay on top of your finances, track cash flow, manage expenses, and make informed decisions about your business. It also helps to reduce the workload and stress associated with trying to catch up on bookkeeping tasks at a later date.
Bookkeeping helps manage cash flow by providing real-time financial information about income and expenses, anticipating expenses, tracking accounts receivable and payable, reconciling bank statements, and making informed decisions about budgeting, forecasting, and investing for future growth.