The key differences between financial reporting and bookkeeping
Updated: Jun 8, 2018
Financial reporting and bookkeeping seems like the same thing - accounting! But only to the untrained eye. Both deal with your company's financial data, and are usually the ones who classify the data into accounting categories.
Depending on your company, this typically involves 2 roles: an administrative staff would record the transactions and an accountant who will "close" the books.
This usually means performing work like reconciling the bank accounts to the transactions recorded by the bookkeeper, ensure consistency between the categories across the months, and organising all these information to produce a financial report at the end of each period. This financial report should be understandable and used by the key management of the company to make strategic decisions going forward (reduce spending in certain areas, raise more awareness for certain events, etc).
We have summarised some of this in the table below:
At Everyday Corporate, we prefer to do financial reporting. Meaning, we prefer to be able to value-add to your company. With the same or less time cost, we would be able to use it to bring you better value as seen above.
If you're a Company, you may already have a person who is able to do the daily bookkeeping and only require us to do the financial reporting (monthly closing of the accounts). Sometimes, in order to increase the cost savings for you and ourselves, we would be happy to introduce to you process improvements where you will be able to see time savings and more accurate financial information.
If you're a sole proprietor, you may be doing the books yourself in the form of invoicing your clients, or making payments to your vendors. In this case, we're happy to come in to help you to either:
1) Do the bookkeeping for you, or
2) Create a process whereby what you do on a daily basis is able to feed us as your accountant the transactions - this would definitely save you cost as we do not need to be your bookkeeper!
Of course, if you'd just like us to simply do the bookkeeping for you, we're still very much happy to help in whatever way we can.
Take a detailed look at our accounting services here.