Are you looking to transition into a new career path? Maybe you're interested in starting a bookkeeping franchise but don't understand the logistics of the job?
Are you unsure of what the difference is between a bookkeeping franchise and an accounting franchise?
Are you interested in learning more? If so, continue reading to find out the differences between a bookkeeping franchise and an accounting franchise!
The Functionality of a Bookkeeping Franchise
For any BooXkeeping Franchise, it takes a lot of management to be successful. This is where bookkeeping comes into play.
Bookkeeping is the act of recording daily transactions.
When you are in charge of a bookkeeping business there are different elements to keep track of. These duties include recording financial transactions and posting debits and credits.
As a bookkeeper, you're also going to have to make invoices, maintain ledgers, and complete payroll.
Maintaining ledgers is one of the most important tasks when running a bookkeeping franchise. You will use the ledger as a document to record the amounts from sales and expenses.
By completing and recording a sale, means that you have a posting. The more sales you produce, the more postings from the ledger.
You can create a ledger by using specific computer software, or keep it old fashion and use a lined sheet of paper. Certain items on your ledger will need supporting documents, so it is best to do research regarding these transactions via the IRS website.
The Functionality of an Accounting Franchise
To have an accounting franchise you will need to understand that it takes multiple aspects. Accounting is the process of taking the financial information from the bookkeeper and producing a financial plan or model from the information given.
To invest in an accounting franchise is a more personal experience. Whereas bookkeeping is transactional.
Some tasks that are necessary include preparing adjusting entries, completing income tax returns, and preparing financial statements.
As an accountant, you will also have to analyze the costs of operations and help business owners with their financial decisions.
Accounting brings together key financial factors in order to see the bigger picture of the business's profits. The accounting franchise will be able to pinpoint the company's progress.
Certifications For a Bookkeeper vs. an Accountant
Mainly it's the accountant that has supervision over the bookkeeper. It might be slightly easier to begin a bookkeeping franchise than an accounting franchise because you don't have to deal with obtaining a CPA.
As a bookkeeper, you will only have to pass a basic certification, which makes it easier to qualify.
Bookkeeping is perfect for stay-at-home parents. Accounts must pass their CPA in order to become an expert accountant. This process is more tedious and involves a lot of work.
The Importance of Knowing the Difference Between a Bookkeeping Franchise and an Accounting Franchise
Whether you choose to become a bookkeeper or an accountant you cannot go wrong. Both will lead you to contribute to a successful business.
It will take a lot of focus to start your bookkeeping franchise but if you're driven and work well with details, then this is the right career for you!
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