Bookkeeping is the process of recording daily financial transactions, such as sales, purchases, payments, and receipts. It focuses on maintaining organized and accurate financial records.
Accounting, on the other hand, involves interpreting, analyzing, and summarizing that financial data to provide insights, prepare financial statements, and support business decisions.
Ideally, you should update your books at least monthly. Regular updates help you track cash flow, catch errors early, and make informed financial decisions. Businesses with high transaction volumes may benefit from weekly or even daily updates.
Yes, while a bookkeeper manages day-to-day financial records, an accountant provides higher-level services such as tax planning, financial analysis, and compliance. Many businesses use both to ensure accuracy and strategic financial management.