In this transcript from a video by Steven J Wick & Associates PC in Fort Collins, we explore the differences between hiring a bookkeeper vs accountant and what each role provides for your business. The video explains the day-to-day transactional responsibilities of bookkeeping, such as accounts payable, invoicing, and payroll, versus the analytical and strategic oversight provided by an accountant. Steve Wick discusses the qualities of a good bookkeeper, the limitations of tools like QuickBooks, and why understanding your business’s financial picture is essential for making informed decisions.
Please note, this video does not constitute legal or financial advice, and we recommend contacting a CPA regarding your specific business situation.
00:00:00 – Introduction to Bookkeeping and Payroll
foreign [Music] bookkeeping to me is a lot more transactional it’s like recording the accounts payable or making a bill to your customer those types of things all right and the more functional day-to-day pieces the maybe the payroll taxes and the payroll all those types of items all of those things are usually handled at my client’s level the side piece is payroll which is something that we do internally and some people like to do it themselves and that’s fine the client really takes care
00:00:45 – Day-to-Day Bookkeeping Responsibilities
of the day-to-day bookkeeping as far as the transactional pieces because they’re on the ground all the time and they understand like if they make a side deal or all of the payments coming or this and that they understand that and they know all of those things are happening [Music] balance sheet is what I like to look at or think of as a picture in time how much cash you have in the bank how many receivables you had what type of inventory you had who you owed on that date the income statement is more of a
00:01:22 – Understanding Income Statements and Equity
it’s almost like a pipeline and looking all the way through and it changes every day and it’s pushing all the way through and so we’ll look from like the beginning of the year and through today and say okay this is how much money you’ve had in sales this is how much money you’ve spent that profit number goes into the equity section of a balance sheet and that’s a very confusing piece for a lot of people is what is equity foreign [Music] bookkeeper is really really detail-oriented and they will agonize
00:02:01 – Qualities of a Good Bookkeeper
and and analyze and stuff on how to get transactions in and they’re you know in a high volume place they’ll be able to move a lot of transactions in and out and put it properly in right categories and whatever else and keep track of all of that stuff some bookkeepers that I have seen are not consistent or be able to look at things and say oh well we’ve got a problem here and you know we already paid this bill twice and all of those types of things so but a good bookkeeper is somebody who is really
00:02:33 – How Accountants Use Bookkeeping Information
detail driven and be able to see something recognize it and know what to do with it their accountant will be able to take that information and look at it and really be able to understand what’s going on be able to analyze things and take the numbers and maybe twist them a little bit and say okay well if we did this this is the thing effect of it some people are more wired to do the bookkeeping better other people are not and even if you are wired to do it sometimes it’s not the best use of your
00:03:06 – Limitations of QuickBooks for Some Users
time [Music] and there is no restrictions against it so that’s why you see a lot of people that just says well I kind of like this and they open up their own bookkeeping Place QuickBooks or whatever and stuff but fruitfully gosh I hear this so often where a person says well QuickBooks does this for me that’s kind of scary in my world to be honest with you because it requires a lot of analysis and looking at things and stuff gets put in the wrong it’s like taking your socks and putting them in the drawer that has all
00:03:43 – Pain Points and Seeking Professional Help
your cleaning supplies they just don’t go there all the times an immediate pain point that is in their face that they’re saying I need to get this resolved and taken care of and so I have seen many clients like that there’s you know there’s pain or you’re in the present and there’s pain in the future and pain and fear of the present are probably they’re fairly big drivers of of what’s going on and why they say Seek additional professional help sometimes they’ve heard about it and they go well
00:04:17 – Deciding to Take Action
maybe it’s time for me to do it I’ve gotta you know take this dive and make this next steps [Music] [Music]
Conclusion – Hiring a Bookkeeper vs Accountant
Understanding the differences between hiring a bookkeeper vs accountant is essential for any business owner in Fort Collins. A bookkeeper manages the daily transactional details, while an accountant analyzes the data to provide strategic guidance and financial insights. This video highlights how the two roles complement each other and why engaging a CPA can help ensure accurate financial management and long-term business success.
