Accountant Felecia Dixson has answers and small business advice for the StartupNation community’s accounting questions in this installment of “The Nitty Gritty”.
Question : Our firm has some income from sales on Amazon.com. The money is direct-deposited into our company bank account. There are no invoices generated for these sales. How should we handle this in terms of revenue?
Felecia’s Answer: The money received directly deposited into your company bank account would be reported on the books as a cash sale. If you are using computerized accounting software, you would enter your transaction as follows:
- Cash in bank – Dr
- Sales - Cr
Question : Does it make sense for me to actually hire an accountant? How much should I expect to pay on a monthly basis? Is there a difference between hiring an accountant and just hiring a bookkeeper?
Felecia’s Answer: Let me start with your third question - there is indeed a difference between a bookkeeper and an accountant. Generally, an accountant has a college degree in accounting, while a bookkeeper does not necessarily. A bookkeeper is someone that handles the day-to-day accounting in your office. An accountant is the person that helps you make financial business decisions based on your tax situation. An accountant is also the one to review your books and records (either monthly or several times a year) to ensure that the day-to-day accounting activities are being completed, and to make any necessary adjustments to ...
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