Today, while speaking with a potential private practice client, he asked a powerful question that I am sure many of you have:
What is the difference between bookkeeping and accounting?
Bookkeeping is a function of accounting. It is transactional.
It is the recording of your practice’s daily transactions. Daily transactions include producing invoices, paying bills, running payroll and reconciling accounts. These tasks allow you to create different financial statements.
Accounting is transforming the daily business transactions into financial statements that are easily understood by the practitioners/clinician.
The accountant will:
- Ensure that the bookkeeping is accurate
- Prepare the financial forecast
- Develop financial analysis
- Prepare financial strategy
- Prepare estimate tax payments
- Prepare yearly tax returns
Both bookkeeping and accounting are equally crucial to the present and future success of your private practice.
If you are looking for both accounting and bookkeeping support, please give us a call. We are here to help and educate.
This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at [email protected]