Today we’re going to talk about the difference between a bookkeeper and an accountant with the goal of showing you when you might want or need their services. Their work is extremely boring but necessary and helpful.
Part of me takes a sort of sick pleasure in all of the moaning and groaning I hear from streamers around tax time. It’s an “I told you so” kind of thing. Is there a word for that?
However, it mostly causes me pain. I don’t want you guys to suffer through tax time. It’s especially rough for streamers since so many people didn’t set out to run their own business. Additionally, you’re in an industry that the IRS has barely heard of so it can be hard to find resources to help you figure out your taxes.
Let’s get to it.
Bookkeeper
A bookkeeper is someone who help you track the financial flows in your business. They do basic data entry like tracking income and expenses. Additionally, they’ll help prepare monthly and annual statements for your income and net worth.
Their job is to be organized. If you give them the info you need and pay them do you your bookkeeping you will also be organized.
Accountant
An accountant can do bookkeeping, but being an accountant implies a higher standard of expertise. Accountants help you figure out your taxes, can give you advice on tax for the future, and can help with business analysis and metrics.
In my mind, the biggest difference between a bookkeeper and an accountant is that an accountant will do more than just data entry. They’ll help you find ways to save on tax that you might not have thought of.
How do I choose?
Figure out what you need. Do you need someone to help you keep your business organized or do you need someone to dive deeply in to your taxes? Bookkeepers are generally less expensive than accountants, so that can factor in as well.
It’s also possible to have both a bookkeeper to help with month to month duties and an accountant to help with annual taxes. Your accountant will love you if someone did bookkeeping for your business. Most larger businesses have both.
How do I find one?
First, ask around! There are others just like you who use their services and will have insights into professionals who can help.
Second, Google is always a good resource.
Finally, you can ask me! For accounting I often refer clients to Ernest Jones. He’s great! If you’re looking for an accountant or bookkeeper, I can help out. I don’t do those things but a part of my job is vetting other professionals.
Conclusion
You may want a bookkeeper and/or an accountant for your streaming business. It’s important to know which it is you actually need! Bookkeepers are more geared towards data entry and tracking while accountants are geared towards tax analysis and tax reduction.
You don’t have to figure this out alone. This is what we do- help streamers make great money decisions. If that’s something that sounds interesting to you reach out me or schedule some time for a free consult. You can check out what I do here.
