Square BrandVoice: Business Accounting Vs. Bookkeeping: What New Business Owners Need To Know

Bookkeeping is the process of recording and organizing your business transactions that yields a snapshot of the present. This process may sound onerous and tedious at first, but today’s bookkeeping apps vastly simplify and expedite the process.Basic bookkeeping is also the minimum threshold for qualifying for loans, grants, and federal programs such as the Paycheck Protection Program . All of these require that your company’s bookkeeping is both accurate and up to date.

The difference between your company’s assets and liabilities. Equity is your company’s net value.If bookkeeping is the recording of financial data, business accounting is the forward- and backward-looking analysis of that collected data. Accounting is a measurement tool that allows small business owners to manage their progress.

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