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Is your business growing rapidly and you no longer feel comfortable keeping your own books? Many small businesses will start out with the business owner taking the time to do his own books. He will record all of the sales and money spent each day. As the business grows it becomes more difficult to keep these records and run the business. It is time to hire a bookkeeper or an accountant.

Bookkeeping is the recording of money coming in or out of the business. It can be done by single entry or double entry methods. By keeping records like this you will be able to take one look and know where the money was spent. You will be able to see what sales were for any particular day and you will be able to see if you are spending more than you are making.

Accountancy will take the records created by the bookkeeper and do an analysis of those records. Statements will be made up that shows the profit and expenses made by the business. You will be able to know where most of your businesses money is spent. At the end of the year the accountant will prepare the taxes for the business. Accountants are also able to help with audits. They will make up the financial statements for all the business heads.

With a small business oftentimes a bookkeeper is hired and an accounting agency may be used to perform audits and taxes. Having financial statements prepared on a quarterly basis will keep you informed of how well your business is doing. It will then be possible to make changes where they are needed. If you are spending too much on your utilities you can cut back, if business is poor in a certain area you can make changes to try to improve that area.

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