The Difference Between Bookkeeping & Accountancy
Posted by Administrator at 8:50 PM on Jan 21, 2016
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Many people would be hard-pressed to describe the differences between dental bookkeeping and accounting. These processes share common practices and goals, but they each make up a very different part of the financial cycle.
What Is Dental Bookkeeping?
Bookkeeping is defined as the process of recording daily financial transactions in a consistent way. Bookkeeping is a very important part of building a strong foundation for your dental practice.
Bookkeeping consists of:
- Recording day-to-day financial transactions
- Producing invoices
- Posting credits and debits
- Completing payroll
- Balancing and maintaining general ledgers, subsidiaries, and historical accounts
The Function of Accounting
The process of accounting includes:
- Analyzing operation costs
- Completing income tax returns
- Preparing your company’s financial statements
- Helping you understand the impact of financial decisions
Successfully utilizing both bookkeeping and accounting together will contribute to the financial success of your dental practice. Bookkeeping focuses more on the day-to-day finances, while accounting focuses more on the big picture – both of these perspectives are important parts of your finances. Hiring professionals to help you manage your practice’s finances will only make you more successful!