New business owners or those new to accounting tend to equate expenses with cash output, with the assumption that any expense created by your business will also include a reduction of cash. While that is true if you’re using cash basis accounting, if you’re using accrual accounting, a recorded expense does not always include a reduction of cash…
Bookkeeping vs. accounting: a small business guide to the differences
Whether you sell baseball cards, baseballs, or tickets to a baseball game, your business still needs a bookkeeper or an accountant, or ideally, both.
Though bookkeeping and accounting are two terms frequently used interchangeably, they are different. A bookkeeper’s responsibilities are mainly transactional, gathering and entering financial transactions. By contrast,...