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I came across someone last week who was very definitely confused as to what the difference was between Accountants and Bookkeepers as he used just one to do all his accounts work.

So think of them as mother and daughter or if you so wish, father and son.

Accountants are the parents – they are the ones who specialise in analysing/reviewing/summarising and interpreting financial information, whereas Bookkeepers they are the children, who maintain the records of either individuals or business’s and input financial transactions, who then pass on this information to their parents ie the Accountants to do their bit with them.

So, use Bookkeepers (who incidentally being not qualifed to do the interpreting/analysing bit, will be cheaper) to do the recording bits of your business, then pass on this information to your Accountant who then does the best bit for you – helps you de-code the information and make sure you are doing all you can to maximise your profits.

So Accountants = Parents

Bookkeepers = Children.

A lot has been written recently about how the economy is effecting all business at the moment, from the largest multi nationals, to the one man bands who are setting up by themselves for the first time. One thing which does not seem to be getting the column inches it really needs though, is cash flow, and the importance of protecting what is essentially the life blood of a company. Without cash, a business cannot operate. It’s as simple as that.

(to read the full article head to   http://cashflowkeepingbusinesssinbusiness.blogspot.com/)