Running an SME isn’t easy, especially if you wanna do it right and watch it grow. Between ensuring proper operations and managing finances, it could be quite the challenge. But that’s why we’re here: to make the financial side of things a bit simpler. So today, we’re gonna give you a quick rundown of the difference between bookkeeping and accounting. That way, you will know the ins and outs of it all if you wanna successfully run your business in Dubai!
Breaking Down the Difference Between Bookkeeping and Accounting!
What is Bookkeeping?
In simple terms, bookkeeping is recording all financial transactions that go on in a company. This is usually a day-to-day process, and it’s about consistently and clearly organizing the financial data. Bookkeepers are there to ensure that every amount of money going in or out is properly accounted for.
Bookkeeping involves a wide range of tasks including sales recording, invoice management, bank statement reconciliation, payroll data and general ledger maintenance. You can learn all about the perks of bookkeeping right here. But to wrap it all up, this process is crucial for your company’s financial health.
What is Accounting?
While bookkeeping is the process of recording transactions, accounting takes that and builds on it. Accountants come into play by using all the information that bookkeepers provide and analyze the financial data. Then they interpret that data to provide insights, help with tax compliance as well as making business decisions.
So, accounting involves a multitude of responsibilities. These include preparing financial statements, ensuring tax compliance, budgeting, financial planning, and auditing. This all ensures that your Dubai business stays financially healthy enough to operate and grow! Mind you, these tasks require professional and skilled accountants with knowledge of accounting steps and more.
Now That You Know the Difference Between Bookkeeping and Accounting
It’s very important to know the difference between bookkeeping and accounting. But what’s more important is knowing that they are equally important for your business. While bookkeeping is all about keeping your data organized, accounting can give you context for that data. Now, many small companies opt to handle their books in-house. However, if you want your SME to grow, you need to focus on operations.
To do that, you will need accounting experts to handle all the financial aspects of your business. Don’t worry though, because you are in the right place for that! Noraal offers a wide range of services to ensure your company’s financial health. That way, you will be able to focus on how to grow your business without worrying about the details. So, make sure you contact us today for a free consultation if you’re ready to grow in your industry!