[ Podcast ]

07. Accounting vs Bookkeeping

So many people have this question–what’s the difference between accounting and bookkeeping? When do you need a bookkeeper and when do you need an accountant? And then what does a CPA do?

Essentially, accounting and bookkeeping are exactly the same. If you want to get super technical, bookkeeping is the actual recording and organizing of your financial transactions. Accounting is the analytics.

But what on earth is the point of organizing your transactions if you aren’t going to analyze it? And on the flip side, you certainly cannot analyze anything until your transactions are organized.

Another huge mistake with accounting that business owners do is that they outsource their bookkeeping because they don’t wanna deal with it and they think they “should”. The problem is that they don’t know what kind of value they’re supposed to get from outsourcing this–so many business owners don’t even realize that there is value to be had!! #facepalm.

Listen to this podcast to learn more about this, about when you do actually need an accountant, and how I literally almost set my house on fire–a few times. Fire is just not my thing, guys.