Understand the Differences Between Bookkeeping and Accounting


differences-between-bookkeeping-and-accounting

Accounting and bookkeeping are not interchangeable terms, unlike what many businesses think. These are two essential steps in the process of financial management. Bookkeeping is about recording the data and accounting is about compiling the reports of the said data.

In simple terms, bookkeeping is literally about keeping the book up to date with transactions, incomings and outgoings, any exchange of money, and income and expenses. Accounting refers to the laying down of the accounts of the recorded income or finances. Meaning, it analyzes, summarizes and reports the data collected through bookkeeping.

This article aims to make the difference between bookkeeping and accounting clear through the following:

• All things Accounting
• All things Bookkeeping
• Can Accountants be Bookkeepers?

All things accounting
Accounting is best described as a practice of maintaining accounts, and assessing liabilities, assets, and performing regular audits on accounts. Accounting is done to keep a check on the financial health of an organization.

Accounting is a standardized practice and most of the work performed by an accountant is for accurate reporting to the Revenue and Customs department. An accountant’s duties are detailed here:

• Analyzing financial data and providing consultation to create a healthy cash flow and increase total assets or profits. They subsequently ensure timely payment and regulation of taxes.
• Managing the financial data and complying with standard accounting laws and rules to ensure that the data is stored, managed and updated accurately. An accountant will choose the correct recording practices or system.
• The accountant ensures that the company follows the updated government regulation on all financial fronts and follows the industry standards.

    Also Read: 10 Tips for Small Businesses to Track Their Expenses

All things bookkeeping
Financial data can be a lot to handle. Plus, it needs to stand the test of time (in terms of recording), and it never stops.

So, bookkeeping is all about keeping an accurate record of the financial data for a business. Bookkeeping involves creating, updating, and formatting the system for recording new information. Bookkeepers engage in the following activities:

• They constantly verify expense records for policy compliance. These should be in compliance with the government guidelines and industry standard, which will be notified to the bookkeeper by the accountant.
• Bookkeepers create credit and debit accounts and categorize them based on the categories of transactions or expenses. Each account will also be linked to a mode of payment.
• They record the data for each transaction, and perform data entry on each of the incoming and outgoing payment, including the mode of payment (this includes cash and checks).
• Bookkeepers implement the accounting software for a single or double entry system of accounting (this will be selected or approved by the accountant).
• They manage all banking activities of an organization, like approving the addition of expenses, sending out salaries, processing monthly cuts, and managing funds.
• They maintain the balance in the liabilities and assets of an organization in the entry system.
• A bookkeeper also supervises the process of data entry or handles it. And, they flag any discrepancies too.

    Also Read: CloudBooks for Accounting- Link

Are accountants and bookkeepers the same?
Accountants and bookkeepers work together to establish healthy financial practices in a business. But they don’t have the exact same profile on paper.

Both accountants and bookkeepers might possess the same college degree, but the work experience and specifics of education distinguish them. An accountant has to clear a standardized exam and obtain a formal certification to be termed as an “accountant”. This involves completing a set coursework along with attaining certain work experience.

The procedure to obtain the title of Certified Public Accountant (CPA) differs from state to state and country to country (so does the term). Both the eligibility and the coursework can vary.
Bookkeepers can obtain this certification too if they want, and they will then be eligible for the same work profile as an accountant, or can be identified as an accountant in the general sense.

Accountants, however, can perform the duties of a bookkeeper without any extra training since they are well versed in bookkeeping tips and tricks.

So, now that you are aware of the differences between bookkeeping and accounting, you can easily decide which process will be more suited to your business in particular.

Keep in Mind These Things Before Selecting a Billing Tool for Your Medical Facility


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Every single day, medical billing software, free ones especially, save so much time and effort for hospitals and other medical establishments. Billing, in today’s world, is no longer a simple matter. It’s not just about listing the total amount payable and the payer’s name. You have to include taxes, various details, policies, etc. This is why using billing software online can make the job easy for medical entities.

There is no doubt that the success of your practice stems from how much your patients benefit after your treatment. However, it is also important to keep the logistics in place in such a sensitive profession. So, you should look at multiple things when choosing the right billing software online, like:

• Ease of Use
• Patient Information Tracking
• Integration with EMR systems
• Customer Support
• Data analysis and reporting

Ease of Use
Integrating any new software with your already established operations can be a little tricky. This is especially true if you are running a busy establishment. Therefore, when selecting any billing software online for your medical facility, prioritize ease of use.

Examine the structure of the software, how the billing is done, what is the list of options you get, how is the dashboard, etc. This will help you determine if it suits your needs, and if it will fit the software you already have in place.
Let your staff prioritize what they feel is absolutely necessary for your version of an advanced MD billing software. This is because it is your staff who will be actually integrating it into the workflow, and so they need to know exactly what the billing tool offers.

Also Read: 5 Tips to Choose the Best Billing Software for Invoice Generation

Patient information tracking
Medical history, family history, medications, allergies, and everything else that is relevant will be stored in your data records. However, one very important thing that you should look for in any medical billing software online is its ability to keep your information up to date.
Also, you will need a tool that can verify the payment channels provided by the patient, like insurance or corporate tie ups.

Integration with EMR systems
Any medical billing software has to navigate multiple aspects of the operations at a medical facility. At every step of your workflow, there will be inclusion of various medical specialties. This should reflect in the software you choose.
But the most important thing here is the integration of the software with the Electronic Medical Record systems. This is something most clinical operations will already have. Every report and every consultation gets recorded this way. This means there is a great deal of data.
And this data needs to handled by the billing software directly. So, look for cheap medical billing software that will give you these integrations seamlessly.

Customer Support
As a medical facility, you probably deal with a number of things 24/7. So, if your billing software is down, you need someone who will be able to respond to patients or their families there and then.
Look for excellent customer support when looking for any billing software online. At no point in time can you afford a complete crash in your assistance. So, either you can get a software that prioritizes you in their customer support scheme, or hire someone who understands the function of that software and will be able to deal with any setbacks that come your way during late business hours.

Also Read: Factors to Consider When Choosing a Billing Software for Retail

Data analysis and reporting
As a medical establishment, you might find yourself dealing with a lot of sensitive data, be it patient records or Electronic Medical Records or Electronic Health Records. All of these will play a major role in either academic studies or government projects. Hence, you need robust billing software that will create detailed reports and analysis to keep that workflow intact and cash flow running.

All in all, while choosing medical billing software, free ones particularly, keep the above factors in mind and make sure it suits your needs perfectly. Compare different options before taking a call.

Important Money-Saving Tips That Freelancers Need to Know


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When you choose to work as a freelancer, you deviate from a traditional 9-to-5 job and decide to become your own boss and enjoy greater flexibility and freedom. While this has many perks, freelancing means you don’t have consistent salary slips coming your way. Hence, it makes sense to explore some creative ways to save money so that you can plan your future and prepare for rainy days easily.
Through the course of this article, we will show you how to save money each month. However, remember that saving money as a freelancer requires a great amount of discipline. This is simply because, as a freelancer, your schedule changes every week. Unpredictable deadlines always keep you on your toes. And with a fluctuating income, it becomes a little tough to cap a definite savings amount. So, here are a few tips on how to save money that will help.

• Track your time
• Keep your expenses in check
• Maintain a separate bank account
• Use estimates for saving goals

Track your Time
The number one tool that should be on every freelancer’s list is time tracking software. You have to know where you are spending your precious time in order to control the consequences of your efforts.
Once you start tracking how much time you are spending on each project, and sub tasks, you will figure out how to save money on everything. So, keep everything you do on a clock. Don’t take any activity for granted. Establish a time tracking setup that works for you.

    Also Read: 6 Essential Online Tool for Freelancer’s Must Try to Work Smarter

Keep your expenses in check
Once you start tracking your time, you are now ready to start tracking your expenses. Business expense tracking is a great way to maximize profits. Many freelancers struggle with filing expenses because of the sheer volume of receipts they receive. And sometimes, they forget to file for expenses. To be honest, when you are juggling with multiple clients, it is hard to keep a track of expenses.
Luckily, any business expense tracking software will allow you to monitor your expenditure on a daily basis. It will segregate your expenses and allow you to build a wholesome, progressive spending habit.
Every week, you will be able to see what you are spending on and what some of those recurring subscriptions that you are paying for are. Business expense tracking will help you save money right from the get go.

Maintain a separate bank account
Having a business account that is separate from your personal account is one of the top tips on how to save money. That’s simply because it is easy to spend more than necessary from your personal account. But your business account can exist as a separate entity that will not be prone to indulgence.
You can set a monthly limit on the outgoing funds from your business account towards your personal account, to automate money saving. Moreover, you can create a savings account. That is one of the more creative ways to save money. Create a virtual piggy bank of sorts, which is only for incoming payments.

    Also Read: Money Managing Tips for Small Businesses

Use estimates for saving goals
If you have any decent invoicing software or a good enough method to make estimates for every project, it will definitely help you save money. After all, every project requires you to put in a number of hours, and bear some expenses. At the end of the project, whatever amount you will be paid, a percentage of it can be contributed to your monthly saving goals.
As a freelancer, you need to establish weekly or monthly saving goals, depending on your pay grade and cycle. No matter what, work towards these goals and use business expense tracking software to make the process simple.

So, keep these creative ways to save money handy when you gear up to take on the freelancing world. Being a little conscious about expenses and embracing technology to monitor your cash flow can help you more than you think.