Your Accounting Department
Tip #2 - understanding the difference between Accounting vs. Bookkeeping
|Posted on August 26, 2019 at 1:50 PM|
Watch the full video below or on our YouTube Channel - YAD Ontario
First of all, Accounting versus Bookkeeping. Do you know whether you need one or the other, or whether you need both? The answer is ‘you definitely need both’!.
Now, let’s define the two:
- Accounting - Typical Accountants, or CPA’s, examine financial information, present what they discover in a format that is useful to a business, and complete annual tax filing for the business.
- Bookkeeping - Typical bookkeepers enter all the necessary financial information properly and accurately into the financial software – i.e. invoices, payments, etc.
In other words, Bookkeepers do all the prep work for Accountants’ analysis.
So, what is YAD Ontario? Who is this ‘Your Accounting Department’? First of all, it is very important to note that we are Certified Bookkeeping Professionals, backed up by the IPBC!
YAD Ontario is a bookkeeping firm contracted to run your books, while you and your teams focus on growing your business.
Our services overlap with those of an Accountant, up to filing business taxes – i.e. T2’s. In other words, YAD does all the prep work, with experience of an Accountant at a cost of a Bookkeeper!
We are partnered with dozens of CPA’s each unique in their own practice to accommodate our clients across different industries.
Our clients work across many different industries, such as:
- Call Centres - Payroll
- Investment companies
- Law Firms
- Medical Institution
- Non-Profit organizations
- Project Management
- Real Estate
Our Software Partners are also vary. Because each one of our clients needs are unique, so the software must be unique to their business.
Our services are based on an hourly rate, just like other bookkeeping and accounting services out there. But, we have also developed a unique monthly package approach to really tailor towards those small to medium businesses and help our clients save cost.
We have a Starter Package that includes 4 hours at $200 per month. That is already discounted at 20%. Up to a Diamond Package that includes 80 hours per month at $3,000.
The one package that majority of our clients prefer is our Gold Package that includes 40 hours per month at $1,600 discounted at 50%.
You are probably wondering what this Custom Services line down here. Well, just like our clients, our Packages are also custom. Let’s take a look at 2 quick examples just to help you get a sense of what exactly we are offering in our services:
1. One of our clients owns a Car Wash and subscribes to a Starter Package, where he pays $200 each months for 4 hours of service. The services included in this package for his business are:
- a. Reconciliation of 1 Credit Card
- b. Reconciliation of 1 Bank Account
- c. Quarterly review of financial statements – Balance Sheet and Loss/Profit.
- d. Monthly HST Filing
- e. Payroll for 5 employees
- f. Total of 6 services
It is important to note the 5 employees here because if you look at starter packages for other bookkeeping/accounting services out there, their starter packages include only 1 employee.
2. On the other side, we have a Law Firm that practices in Employment and Family Law, who subsribes to our Diamond Package. That package includes 80 hours a month and they pay $3,000 each month. Some of the services included in this package for this business are:
- a. Reconciliation of 3 Credit Card
- b. Reconciliation of 3 Bank Account
- c. Quarterly review of financial statements – Balance Sheet and Loss/Profit – more than just these 2 statements.
- d. Monthly HST/WSIB Filing
- e. Payroll for 8 employees
- f. Total of 38 services
And so, what does that really mean for you at the end of the day? Each client will subsribe to a package that makes the most sense for their business and their industry. We could have clients from different industries subscribing to the same package, with different services.
And so, again, what does that really mean for you? Well, it is your business, and you have a say in it. We will sit down with you, go through all of your pains and needs, and what is it that you are looking to accomplish. And, together, we will come up with a plan that is suitable for your needs.
What are YOUR bookkeeping needs?