Accountant versus Bookkeeper

Bookkeeper versus Accountant | What's The Difference?

What is the difference? According to Accountingcoach.com:
"Bookkeeping includes the recording, storing and retrieving of financial transactions for a business, nonprofit organization, individual etc.
Accounting is the recording of financial transactions along with storing, sorting retrieving, summarizing, and presenting the results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks."

In summary, accountants produce reports and analyses where bookkeepers do not. Which is best for your business? My advice, rather the person you are working with calls themself a bookkeeper or accountant, the most important thing is you trust their work and the results you are getting each month and at the end of each year. Also notice, neither of the definitions above state anything about the person having a higher-level education. In other words, whoever you might be working with might identify as an Accountant without a degree from an accredited university.

-Ryan

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Days of Cash

I could not believe it. Not more than one day of cash. My heart sank to my stomach. I double-checked. Still in disbelief. Yes, I confirmed with myself for the third time, not more than one day of cash. What I described above is an incredibly scary and harsh reality. There I was working with a new client, a business that had been in business for more than 50 years. They had more than 100 Million dollars in revenue per year, and as I looked at their statement of cash flows and their daily inflows and outflows, I realized…they were literally operating day to day on cash! Meaning, if something were to go wrong with the bank and they were to not receive the businesses daily deposit, the company would not be able to pay their bills, they would overdraft their account. How can a company that earned so much every year and been in business for so many years not have more cash on hand than that? It was unbelievable to me. Do you know how much excess cash your business has?

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