Many individuals mistakenly consider bookkeeping and accounting to be the same thing. This confusion is understandable because the accounting process includes the bookkeeping function, but is just one part of the accounting process.
The term accounting is much more broad, going into the realm of designing the bookkeeping system, establishing controls to make sure the system is working well, and analyzing and verifying the recorded information. Accountants give orders; bookkeepers follow them.
Bookkeeping is simply the recording of financial transactions. Transactions include purchases, sales, receipts, and payments by an individual or organization. Bookkeeping is an indispensable subset of accounting. Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information base of an entity, which is needed for two basic purposes: facilitating the day-to-day operations of the entity and preparing financial statements, tax returns, and internal reports to managers.
Tax planning is the exercise undertaken to minimize tax liability through the best use of all available allowances, deductions, exclusions, exemptions, etc., to reduce income and/or capital gains. Tax planning entails creating portfolios or circumstances that are as tax efficient as possible. This requires investors and companies to give consideration not just to the size of their incomes or profits, but also to the nature and timing of purchases, insurance coverage and the types of investments they make. These decisions affect everything from which tax bracket an investor is in, to the types of tax deductions the investor qualifies for.
QuickBooks is bookkeeping software that combines a variety of accounting processes into one user-friendly system. The software’s primary function is to alleviate the use of multiple tables, spreadsheets, and tracking sheets necessary to document and maintain accounting tasks at a company. Accounting figures are also easily reconciled for tax purposes with QuickBooks. The software was developed by Intuit and can be customized based on the needs of the business utilizing the software. Our team at AKD Consultants is equipped to answer your questions and help your company navigate the QuickBooks program.
The team at AKD Consultants has been fantastic. Adam and Shawn are incredibly knowledgeable and responsive to our needs. They’ve taken the time to really understand our business and tailor their services and advice to our unique needs. AKD has become a trusted advisor and extension of our team.Steve Rubin, OnSource
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