What is the difference between bookkeeping and accounting?
We often get this question, and it’s an important one for business owners to understand. So we’ve compiled a list of answers to some of the key questions associated with this topic to help you better understand the difference between the two.
How are bookkeeping and accounting similar?
At their core, bookkeeping and accounting share some common elements: Numbers create order, each piece of data has a place, and when done correctly, everything fits together. But in the big picture, each of these intertwined disciplines provides different benefits for your business. And furthermore, each requires specific resources and support to ensure they are done accurately and managed correctly.
What activities define bookkeeping?
The foundation of a bookkeeper’s work involves identifying, compiling, and recording accurate financial data on which someone else will base decisions.
What activities define accounting?
Accountants summarize, interpret, and communicate financial transactions which were classified in the ledger account. They are not primarily concerned with presenting or using the information to support day-to-day business operations or management decision-making.
Which activities does VaroTeam perform?
We do it all! Our founding principle (which still guides us today) is to increase the efficiency with which businesses manage their financial data. We do this through the expert application of technology, such as integrative apps that allow businesses to enter data remotely and access business records virtually. In tandem, we also perform accounting services, including accounts payable, accounts receivable, payroll, sales tax preparation/filing, transaction management, and financial statement preparation.
Beyond managing your financial data, we support the actual operation of your business. This includes operational activities such as supporting your customer and vendor interactions. Most importantly, we are a consulting partner, providing advisory services for founders and executives. By digging deep into the financials, we provide collaborative support for high-level decision-making.
Why use VaroTeam instead of an accounting firm?
VaroTeam provides the key services of bookkeeping, accounting, and consulting firms. But by combining our expertise in financial data management and technology, we deliver these services more efficiently. In doing so, we offer our expertise for rates that are often less than half of those from a traditional accounting firm, enabling our clients to get more done with less investment.