What Type of Accountant Do I Need?
And what exactly is accounting, anyway?
When we first speak to a new client, we start by asking lots (and lots and lots) of questions about their business and their goals to assess what kinds of services they need. For some, this involves a conversation about the different foundational types of accounting, and what each can do for a small business.
Bookkeeping
Recording and tracking the numbers that have already happened
Bookkeeping is the foundation of all accounting services. It involves the systematic recording and organization of financial transactions, making it easier to track income, expenses, and assets. Here's what you need to know about bookkeeping:
Data Entry: Bookkeepers record all financial transactions, such as sales, purchases, expenses, and payments, into cloud accounting software. (Though if you’re still on a desktop system, we can help you update to the cloud!)
Reconciliation: Bookkeepers ensure that financial records match bank statements and other supporting documents, verifying the accuracy of the data.
Financial Reporting: Bookkeepers generate financial statements like income statements, balance sheets, and cash flow statements, providing a clear picture of a business's financial health.
Client Advisory Accounting Services
Interpreting the numbers, and using the numbers to advise on the future
CAAS (sometimes called just CAS: client advisory services or client accounting services) goes beyond bookkeeping and provides strategic financial guidance to clients. This service encompasses various financial aspects to help clients make informed decisions. Accountants who provide these services are called controllers or chief financial officers (CFOs).
Financial Analysis: CAS/CAAS professionals analyze financial data to provide insights and recommendations. They help clients understand their financial position and plan for the future.
Budgeting and Forecasting: CAS/CAAS involves creating budgets and financial forecasts, enabling clients to set financial goals and track their progress.
Risk Management: CAS/CAAS experts identify potential financial risks and develop strategies to mitigate them, ensuring the financial stability and growth of the client.
Business Advisory: For businesses, CAS/CAAS professionals offer advice on improving operations, reducing costs, and maximizing profits. They assist in strategic planning and decision-making.
Tax Accounting
Crunching the numbers to provide to the government
Tax accounting is a specialized field that focuses on managing and optimizing taxes for individuals, businesses, and organizations. Tax accountants are experts in tax laws, regulations, and strategies, and their primary goal is to minimize tax liabilities while ensuring compliance with all applicable tax laws.
While we don’t provide tax services at Breakaway, we have many wonderful tax partners we can refer clients to in order to assess what kind of tax services they may need.
Fractional Solutions
No matter what kind of accountant you need, there is a growing trend towards hiring these professionals on a fractional basis, such as a Breakaway advisor. This offers companies the opportunity to access high-level financial expertise without the full-time commitment and costs associated with hiring these roles internally. This flexibility can be particularly beneficial for startups, smaller businesses, or companies undergoing restructuring, enabling them to access the precise financial expertise they need, precisely when they need it.
If you think your business is in need of bookkeeping, controller, or CFO services, shoot us an email at info@breakawayba.com. We’d love to meet you.
