Accrual-Based Accounting This method records both invoices and bills even if they haven't been paid yet. This is a highly recommended method because it tells the company's financial status based on known incoming and outgoing funds.

There are different types of bookkeeping methods available, and choosing the right one for your business can be a challenging task. In this article, we will discuss the three primary bookkeeping methods: single- entry bookkeeping, double-entry bookkeeping, and computerized bookkeeping.

Here's an easy way to think about it—bookkeepers lay the groundwork by recording financial transactions so that accountants can analyze financial statements and provide strategic recommendations.

Bookkeepers and accountants sometimes do the same work, but have a different skill set. In general, a bookkeeper's role is to record transactions and keep you financially organized, while accountants provide consultation, analysis, and are more qualified to advise on tax matters.