The Benefits of Taking a QuickBooks Training Course

Your business may be small but, even if you don’t feel you need a CPA (Certified Public Accountant), you do need to keep accurate financial records.

This task can be overwhelming but it is vital to the success of your business.

Luckily, there is accounting software available to help small business owners manage their finances as well as many other aspects of business.

Liu & Associates understands the value of being able to take care of business matters. Because of this, they recommend and offer training for an amazing accounting program called QuickBooks.

Get Quickbooks Training

What is QuickBooks?

QuickBooks is accounting software geared toward small and medium sized businesses.

Some features of the software include:

  • Track income and expenses
  • Capture and organize receipts
  • Track mileage
  • Manage bills and payments
  • Send invoices
  • Maximize tax deductions
  • Accept payments
  • Track sales and sales tax
  • Payroll
  • Track inventory
  • Run reports
  • Send estimates

QuickBooks is designed to support multiple users as well as connect with third party apps.

Why Do So Many Small Businesses Use QuickBooks?

QuickBooks provides a do-it-yourself solution for small business accounting.

The interface is user-friendly and customer-oriented. With a QuickBooks training course, anyone can master this program.

The software also helps small businesses easily manage their taxes, which ensure that taxes are filed properly along with all the necessary information.

QuickBook’s integrated tools help businesses to increase their efficiency and productivity. They also regularly update and improve the software in order to keep the program up-to-date.

Most importantly, QuickBooks offers automated backup services, meaning that all of  the business’s information is safe from data loss.

What Are the Benefits of Taking a QuickBooks Training Course?

1. The Program Can Be Overwhelming

Because QuickBooks incorporates so many wonderful and helpful features, it can take some time to figure it all out. Even with a user-friendly interface, it can be a challenge to easily navigate the software upon first use.

A QuickBooks training course will guide you through using these features and help you gain the confidence to do so in a professional setting.

2. You’ll Learn its Full Capabilities

Even if you are able to grasp how to use QuickBooks, there are some features you may not be aware of. A QuickBooks training course will help you take full advantage of the program’s full capabilities.

QuickBooks’ full array of features are designed to increase the effectiveness of a small business’s accounting department. Understanding how to use them all is valuable knowledge.

3. It’ll Show You How to Apply Your Bookkeeping Skills

You may have plenty of experience as a bookkeeper but it may be difficult to transfer your practical skills to the QuickBooks software.

A QuickBooks training course can teach you how to combine your know-how with the program’s many features.

4. You’ll Make Yourself a Competitive Job Candidate

QuickBooks is quickly becoming the leading accounting software for small businesses. Knowing how to fully use the program is a valuable skill to add to your resume.

Having experience and training with QuickBooks can open the door to jobs in a variety of organizations, including:

  • Small businesses
  • Not-for-profit organizations
  • Government agencies

Businesses appreciate efficiency and productivity, which you can offer with your knowledge of using QuickBooks.

Ready to Step Up Your Business’ Accounting Game?

Liu & Associates is happy to offer comprehensive QuickBooks training!

Whether you are looking to introduce your staff to accounting, or train a new employee, Liu & Associates can tailor a QuickBooks training program to suit your needs. We offer one-on-one or group training sessions.

We work with your schedule to accommodate your QuickBooks training.

Contact us today for more information!

How to Choose an Executor for Your Will and Estate


When creating a will, there is more to consider than simply what goes to whom. After you are gone and passed, someone will be responsible for executing your will.

Although you will not be around for the aftermath of dealing with your estate, you want to make sure you appoint the right person for the job – and choosing that individual can be a stressful and confusing endeavor.

What is an Executor?

An executor is the person responsible for following through on your will after you have died. This individual is in charge of sorting out your finances,  making sure your debts and taxes are paid and distributing the remainder of your estate to your beneficiaries and heirs.

It is also the job of the executor to identify everything in your estate, including bank accounts, pension payments and life insurance payouts.

The executor does not control the estate – they are legally obligated to fulfill your requests faithfully and fairly.

Choosing an Executor

When choosing someone to be the executor of your will, it’s important to put feelings aside and look at the situation objectively.

Being an executor is not a position of merit or perceived importance – it’s  a large responsibility and you want to make sure that the individual chosen can fulfill it.

When choosing an executor for your will and estate, consider the following:

  • Someone you can trust. You want to be sure to choose an individual who can execute your will fairly and objectively.
  • Someone who lives close by. An executor who lives out of town, province or even the country is going to face the long distance struggles of dealing with your family and assets. They will also face logistical challenges if a house needs to be sold or if local laws differ from where they reside.
  • Someone who has a flexible schedule. Sorting out an estate takes time and there are many deadlines that must be met. You want to ensure that the individual has the time to properly execute the will and meet the deadlines.
  • Someone who has some knowledge of taxes and finances. The majority of a will’s execution involves finances and having a basic knowledge of these things will make it easier for the executor of the will. For more complex estates, or foreseeable family conflicts, you may want to consider appointing an estate professional to plan your will and estates.

Professional Wills and Estates Planning

Wills and estates planning is recommended if you own a business or a large and complex estate. You may also want to consider hiring a professional to plan your will if you suspect that family conflict will make executing the will difficult.

Financial experts, such as the professional accountants at Lui & Associates, can ensure that your financial wishes are carried out correctly and legally.

We can tailor a plan to meet your specific needs, paying close attention to aspects of wills and estate planning such as:

  • Estate valuation
  • Tax elections
  • Tax planning
  • Estate freeze
  • Family trusts
  • Asset transfers

Having a professional prepare your will and estates ensures that your beneficiaries are protected legally and financially.

Our experts at Liu & Associates can handle any issue in regards to will or estate planning. Contact us today for more information about having your will and estates planning done proficiently and professionally.

Bookkeeping for Nonprofit Organizations


Even though nonprofit organizations do not focus on generating an income, it is still important to have proper bookkeeping habits to ensure the organization’s success.

Understanding tax implications, as well as properly recording and tracking financial data, will help you to run a successful nonprofit. This will enable you to meet your goals and supports your cause.

What is a Nonprofit?

A nonprofit is an organization that focuses on furthering a social cause or shared goal. They do so by using its surplus of revenue to aid these causes and goals instead of distributing its income to shareholders, leaders or members. This is what separates a nonprofit from a business.
Both businesses and nonprofits have the same tasks to record, track and analyze financial transactions. Yet, nonprofits answer to its mission whereas businesses answer to the stockholders.

The revenue generated by nonprofits consists of donations, grants, and investments. All these revenue streams are considered to be tax-exempt. This means they are not required to pay income tax on the money they receive.

Tax Reporting Requirements for Nonprofits

Even though nonprofits are tax-exempt, they still need to file a T2 Corporate Income Tax Return. Some nonprofit organizations may also have to fill out a Form T1044 (“Non-Profit Organization Information Return”).

The T2 Corporate Income Tax Return is an 8-page form that is due 6 months after the last date of the organization’s fiscal year. If the nonprofit organization only operates in a single province or territory, only 2 of those pages need to be filled out.

Under certain circumstances, a nonprofit organization may also have to file for T1044:

  • If the organization received dividends, royalties, rentals or interest in excess of $10,000 during the year;
  • If the organization owns more than $200,000 in assets;
  • If the organization was required to submit a T1044 the previous year.

Navigating these forms may be tricky and you want to make sure you get it right. Contact our accountants at Liu & Associates for more information.

Financial Statements for Nonprofit Organizations

Statement of Financial Position

In the world of business, bookkeeping often involves a balance sheet that details the owner’s equity and assets. Nonprofits, however, use a Statement of Financial Position to detail its assets and liabilities of the organization as well as its net assets.

The net assets are divided into 3 categories:

  • Unrestricted Assets: These assets are collected from donors with no restrictions on use.
  • Temporarily Restricted Assets: These assets have restrictions imposed on them by the donor. These usually specify that the donation is used in a certain way. Temporarily restricted assets typically include an expiration date on the restrictions.
  • Permanently Restricted Assets: These assets have usage restrictions that do not expire. These restrictions are usually placed on large sum donations.

Statement of Activities

These statements quantify the revenues detailed in the Statement of Financial Position.

Statement of Cash Flow

The Statement of Cash Flow tracks the flow of cash in and out of the nonprofit organization. It specifically focuses on activities held by the organization that generates and uses the cash.

Statement of Functional Expenses

This last statement documents how expenses are incurred for each area of the nonprofit organization. These areas include management, administration, fundraising and programs.

Bookkeeping Basics for Nonprofit Organizations

Accounting Software or Journal System

In order to keep your nonprofit organization organized, you need to establish a system for tracking financial transactions. These transactions include receipts, distributions (such as payouts and expenditures) and petty cash.

Open a Dedicated Bank Account for the Organization

Do not use a personal bank account for your nonprofit organization. Opening a separate bank account is important for keeping accurate records of incoming and outgoing money.

Create a Budget

Like a for-profit business, a nonprofit organization requires a budget. A simple budget plan includes expected income sources and expected expenses. It is also important to determine what your financial goals are, estimates of cost and income and see if the budget aligns with your plan.

Financial Statements

Once you have everything in place, you need to create financial statements as mentioned above. These documents will help you keep track of where the money is coming from, where it is going and how it got there.

Common Mistakes Made by Nonprofit Organizations

Here at Liu & Associates, our accountants want to ensure that your nonprofit organization is successful. The following are common mistakes made by nonprofit organizations and how you can avoid them:

Poor Planning (Or No Planning At All)

Even though nonprofit organizations differ from revenue-generating business, the need for a plan is just as important. You may not be looking to make a profit, but a nonprofit organization still needs a vision, a goal and a plan to get there.

A good business plan includes information such as sources of funding, potential products or services to be offered. It is also important that you include a needs assessment. 

No Financial Knowledge

Running a nonprofit is more than generating donations and dispersing them appropriately.

As part of the business plan, you need to consider what sort of startup costs are appropriate to get your organization running. You also need to keep good financial records. This is because although nonprofit organizations are considered tax-exempt, you still need to file taxes for it.

Assuming Taxes Don’t Have to be Filed

Again, just because nonprofit organizations are tax-exempt doesn’t mean you are exempt from filing taxes. There may be some cases where certain revenues are considered taxable. Even if those situations do not apply to your nonprofit organization, a tax return is still necessary. Otherwise, you may face the penalties of not filing.

Bookkeeping for Nonprofits is Not Impossible

But it can be confusing and challenging. Let our experts at Liu & Associates help you navigate the details of nonprofit bookkeeping. Contact us today!

Taxes After 65


Turning 65 is a significant milestone in every Canadian’s life. With the changes in health and lifestyle also comes changes in financial income and taxes.

Understanding what these changes are and how to prepare for them is important in ensuring your taxes are done properly and without error.

Liu & Associates is here to help you understand exactly what changes tax-wise when you reach the age of 65.

What Changes After 65?

Once you turn 65, you are eligible for more tax benefits than younger taxpayers. These include a claimable age amount, pension income amount, medical expenses and other federal credits.

Because you will be receiving age-specific incomes, these payments must be in your yearly tax return.

The following payments are considered taxable income:

  • OAS (Old Age Security)
  • Retiring Allowance
  • Other pensions and superannuation
  • RRSP (Registered Retirement Savings Plan)
  • Annuity payments
  • PPRP (Pooled Registered Pension Plan)
  • Retroactive lump sum payments
  • Income from trust or a retirement compensation agreement
  • RRIF (Registered Retirement Income Fund)
  • CPP (Canada Pension Plan)
  • QPP (Quebec Pension Plan)

Income Sources for Seniors

Being 65 years old and being retired are not mutually exclusive. Many senior Canadians work beyond the age of 65 and, in doing so, can still take advantage of supplemented incomes based on their age.

There are income programs, however, that focus specifically on retired individuals. That being said, income supplements such as OAS can be affected if additional income is made through part-time work.

These are various income sources for Canadian seniors that consider age as well as retirement:

Old Age Security (OAS)

OAS is an income supplement financed by Canadian tax dollars for individuals over the age of 65. It provided benefits to individuals over 65 and is considered taxable income.

Canada Pension Plan (CPP)

CCP is an income funded by payroll deductions and is available as early as 60 years of age. CPP is also taxed income source.

Guaranteed Income Supplement (GIS)

The GIS is available to low-income Canadians and is a non-taxed income.

Annuity Payments

Annuities are a financial product sold by an annuity provider, usually a life insurance company. They will pay a guaranteed regular income during retirement but the money received is taxable.


A superannuation is a company plan created by a company for the benefit of its employers to use during retirement. The funds deposited will grow until retirement is reached or the funds are withdrawn. This is a taxable income.

PPRP (Pooled Registered Pension Plan)

This retirement income option is geared toward individuals and self-employed individuals. This plan will move with you from job to job and is considered taxable income. However, it is only considered a “pension income” when you are 65 or older.

RRIF (Registered Retirement Income Fund)

RRIF’s are arranged between an individual and a carrier such as an insurance company, trust or bank. The fund is registered with the federal government and is taxable income.

Tax Benefits for Seniors

As mentioned above, there are tax benefits once you reach the age of 65. To take full advantage of potential tax benefits, speak to a full-service accounting practice such as Liu & Associates LLP to seek out all qualifying tax credits.

Age Amount

Once you reach the age of 65, you may be eligible to claim an age amount on your taxes. If your net income is less than $83,353, you are able to claim this tax credit.

Pension Income Amount

With the pension income amount, you can claim up to $2000 in credit on eligible pension income. These incomes include a pension or annuity income received as payment for a pension or superannuation plan or payments from an RRSP.

Medical Expenses

If you have any medical expenses that are not reimbursed and equal more than 3% of your income, you can claim them on your taxes.

These include more than prescription medication. As long as the medical necessities you are claiming are prescribed, you can claim items such as:

  • Air conditioners
  • Bathroom aids
  • Chairs
  • Hospital bed
  • Orthopedic shoes, boots, and inserts
  • Page-turner devices
  • Walking aids

In order to claim these expenses, you need to keep your receipts.

Other Federal Credits

The CRA (Canada Revenue Agency) offers a Home Accessibility Tax Credit (HATC). This non-refundable tax credit is available for any home improvements that help to better your quality of life such as walk-in tubs, wheelchair ramps, and hands-free faucets.

Because this is a non-refundable tax credit, it can only be applied to reduce any tax owing and not put toward any refunded taxes.

Tax Tips for Seniors

While not much changes when it comes to filing taxes after the age of 65, there are some considerations worth noting to ensure the procedure is done properly and without error.

For more information regarding any changes to your tax return, please contact our accountants.

1. Stay Organized

Keep track of all your expenses on a monthly or bi-monthly basis. Try to keep all your paperwork, including receipts, in one place.

2. OAS and Part-time Income

If you work part-time while claiming OAS, the government will reduce your OAS payment if you make over $75,910 a year. This is called the “OAS clawback” and typically reduces your OAS by 15 cents for every dollar you earn over that amount.

3. Pension Splitting

When you are married or common law, the higher-earning partner can split up to half their pension income with the lower-earning partner. This spreads taxable income so that one partner is not taxed in a higher tax bracket.

4. RRSP’s

Your RRSP contributions provide tax breaks but any money withdrawn is considered taxable income. By the end of the year that your turn 71 you will have to withdraw the funds, convert the funds to a RRIF or use them to purchase an annuity.

Have Questions About Filing Taxes?

If you’re confused about how to file your taxes after the age of 65, please do not hesitate to contact our professional and experienced accountants today.

How Your Business Can Benefit from a Bookkeeper

how your business can benefit from a bookkeeperBookkeepers and accountants are similar but they have different duties, even though the terms are often used interchangeably. Qualifications and education aside, just how much the two professions handle the scope and complexity of a business’ finances is the main division between them. If you are unsure if you require the services of an accountant or a bookkeeper, refer to Liu & Associates’ related articles to find out more. Once you have identified your business and financial needs, refer to the information below to learn how your business can benefit from a bookkeeper.



Only you can decide what your time is worth– that is why many struggle with the decision whether or not to hire a bookkeeper. Usually this indecision happens when a business reaches a level of revenue too complex for current employees to track, but also not varied enough to warrant an accountant. The following are some of the costs you can expect to incur when hiring a bookkeeper:

  • Accounting or bookkeeping software subscription;
  • Hourly or monthly fees (outsourced);
  • Benefits and annual salary (in-house);
  • Work-hours for recruitment, training and regular meetings.


No business owner succeeded by taking on unnecessary costs, but if you need bookkeeping services: it could end up saving money! Hiring a professional almost always means you believe that cash flow, investment strategy or other financial realities could be performing better. The next list outlines the most common benefits of bookkeepers:

  • Time and effort saved for other work;
  • Improved invoicing, collecting and record-keeping;
  • Lower likelihood of avoidable financial errors;
  • Choosing between outsourced or in-house adds flexibility.

Also known as doing a “benefit-cost analysis,” only someone who is very familiar with you or your business’ needs can know for sure if a bookkeeper is the right choice. If you are unsure, take time to review your finances or have it done by a reputable professional. Once you know the lay of the land, financially-speaking, you can move forward confidently when choosing whether or not to hire a bookkeeper. Questions? Concerns? Contact us here at Liu & Associates today for a wide range of financial services.

BOOKKEEPING vs ACCOUNTING: What’s the Difference?

bookkeeping services

When it comes to tracking your business’ income, spending and other financial realities, it can become overwhelming if you are not prepared. To accomplish this daunting task, many business owners and operators begin looking into bookkeepers and accountants. Whether independent, part of a firm or hired on to the business itself– bookkeeping and accounting can be completed in many different ways. The question remains: what’s the difference? Read on for Liu & Associates guide to these two different types of financial services.

What does a bookkeeper do?

Also known as record keeping, bookkeeping includes but is not limited to tracking daily transactions, creating invoices, maintaining payroll and ultimately building a foundation of clear, concise financial records. The scope of bookkeeping depends on the size of your business and you may or may not require dedicated staff to complete these tasks.

What does an accountant do?

Accounting consists of everything a bookkeeper would do, but widens to include more high-level financial advice and analysis. An accountant may complete any of the following objectives: financial impact statement; future projection of performance; tax filing and strategy; operational cost prediction or adjustment; and many others. Essentially, an accountant takes the specific data collected by bookkeeping and produces a more general, bigger picture.

What service is right for me?

This could be a challenging question if your business is in transition, but often you can make a decision based on the size and scope of your endeavours. Often, sole proprietorships and partnerships start out with the individual(s) handling their own bookkeeping services. As small businesses grow, a third party or part-time bookkeeper can be employed– but some may even skip this step and bring on an accountant, especially if the business is growing quicker than expected.

As you can see, the line between accounting and bookkeeping is quite distinct. Often a business owner will know what level of assistance they require on an instinctual level, even before interviewing potential services or employees. If you have any questions or concerns about this issue, contact or visit Liu & Associates today!

3 Most Common Small Business Bookkeeping Mistakes and How to Avoid Them

Bookkeeping is a fundamental part of your small business; unfortunately, mistakes are inevitable and happen to the best of us. So how do you save yourself from becoming a bookkeeping disaster? Read on to learn Liu & Associate’s three most common bookkeeping mistakes, and how to avoid falling victim to them yourself.

1. Forgetting to Track Small, Reimbursable Expenses

Many small business owners will pay for business expenses with their personal credit card, and then forget to submit the expenses to the company for reimbursement. All transactions, no matter now small and insignificant they may seem, need to be tracked properly. By staying on top of small transactions, it becomes easier to manage the bigger ones.

How to Avoid This Mistake?

Get a process in place from the very beginning. While it may seem unnecessary when your company is only one or two people, it’ll set the groundwork for when your company grows and the number of transactions increases.

2. Not Properly Classifying Employees

There are different rules and regulations come tax time for employees and non-employees. Many small business owners aren’t sure whether a consultant, contractor or freelancer are considered an employee or not. Misreporting employees results in reporting your business to the CRA inaccurately, and can cause you grief during an audit.

How to Avoid This Mistake?

Reach out to an accountant or advisor to learn what tax implications there are for each type of employee and non-employee, so you can accurately classify your workers.

3. Falling Behind on Entries & Reconciliation

One of the most fundamental aspects of bookkeeping is reconciling the books and bank statements each month. Reconciliation is a simple process – simply compare your books with your bank statement and make sure there are no discrepancies! If expenses aren’t being tracked, you’ll start to notice your books aren’t balancing, which means your reports are not up to date. Without current information, it’s next to impossible to make informed business decisions.

How to Avoid This Mistake?

Set aside a block of time each week to reconcile your accounts. If you catch mistakes the same month they were made, it makes correcting them a lot easier because they are likely to be more fresh in your mind.

Looking for Bookkeeping Help?

The easiest way to avoid making any bookkeeping mistakes is to let a professional handle your accounts! Liu & Associates offers flexible and comprehensive small business bookkeeping services that will make your business accounting a breeze. If you’d like to learn more about our small business accounting solutions, give our team a call today!

5 Small Business Bookkeeping Tips

Edmonton Bookkeeping TipsAs a small business owner, we know that you have a lot on your plate. Accounting may seem like a tedious task that is easy to push aside, but if you don’t keep a tight ship when it comes to your books it can make your life extremely difficult come tax time.

Read on to learn Liu & Associate’s five small business bookkeeping tips that will keep your life smooth and simple – even during tax season.

1. Find a Trusted Advisor

Having someone you can go to for sound advice is invaluable as a small business owner. Your advisor can make sure you are handling your finances properly, answer any questions and help you fix any mistakes that might have been made.

Have a small budget? Don’t worry! There are a ton of flexible options out there to make sure you get the advice you need at a price you can afford.

2. Plan for Major Expenses

Set aside some time and map out any major expenses that you foresee happening in the next three to five years. That way, you can plan accordingly and make sure you have the finances in place beforehand. This will save you from scrambling for a loan when these expenses become unavoidable. Be sure to acknowledge your busy and slow seasons, as this will affect how much money you have available to spend.

3. Track your Expenses

Write. Everything. Down. It doesn’t matter if you chose to carry around a notebook, make a note on your phone or write it on a napkin. Keeping track of every business expense ensures that you don’t miss out on any tax write-offs. An easy way to keep track of business expenses is to have one credit card that you use solely for business purposes. This ensures you have a digital copy of all business charges, and removes the stress of having to remember to write down a charge every time you use cash.

4. Keep an Eye on Your Accounts Receivables

When things get busy, it’s easy to forget to stay on top of your accounts receivables. Without receivables, income dwindles! Make sure you have a process (i.e. a monthly report), that lists any past due payments. You’ll also need to have a process for how to handle these accounts. It may be an email, a phone call or sending a second invoice; whatever it is it will ensure you are getting the monthly payments you are owed!

5. Schedule a Time Each Week to Review Your Books

Give yourself some time to sit down and go over your finances. Doing this quick overview once a week will allow you to ensure that everything is in order, and catch any mistakes in their early stages. It doesn’t need to be a big time-drain – 30 minutes/week is generally plenty!

BONUS TIP: Bring in the Experts

Liu & Associates offers flexible and comprehensive small business bookkeeping services that allow you to focus on what really matters – running your business. If you’d like to learn more about how our small business accounting solutions can help, give our team a call today!

7 Easy Bookkeeping Tips

Bookkeeper highlighting a document with receiptsFinances are important and there are best practices when it comes to keeping your books balanced. Liu & Associates knows the value of well-organized finances: peace of mind and confidence to face the future. Harness these strategies for yourself by consulting our list of the best bookkeeping tips!

#1: Gotta keep ‘em separated. Always keep business and personal accounts separate for simplicity and efficiency. Crossover can incite audits and other financial consequences.

#2: Always be prepared. Track your expenses to look for spending trends and plan for unexpected costs. Being prepared won’t stop the disaster from catching you off-guard– but it will give you financial peace of mind.

#3: Read the fine print. Be extremely familiar with all of the statuses or tax implications of your accounts and investments. Avoid an ugly surprise at year-end or tax time by regularly keeping records accurate and organized.

#4: The Taxman cometh. No matter what, most people will eventually owe taxes— it’s one of the few certainties in life. Make a habit of setting aside funds for owed taxes or set up an account to pay in installments.

#5: Be on time. Pay all bills and invoices in a timely fashion. Outstanding costs can be overlooked and/or subject to expensive late fees. Set a daily reminder if needed to ensure you are paying what’s owed on time.

#6: Trends like theses. Observe spending and saving trends across your finances. Eliminate inefficient patterns and encourage or double-down on habits that have a positive financial impact. If you don’t look at the data, it’s easy to assume you’re doing a good job.

#7: ‘Til debt do us part. One basic financial rule is to stay ‘in the black.’ Some people thinks this means borrowing funds to maintain a business or lifestyle. Unfortunately, more debt is rarely helpful in the long run. Focus on cutting back to make real capital stretch farther.

After reviewing the above tips, take a look at your own bookkeeping practices to see if they are up to snuff. If you find something lacking, bring your records and financial plan into Liu & Associates for a comprehensive assessment. Our highly-skilled professionals will ensure your finances are in order.

Bookkeeping vs. Accounting


When it comes to paperwork and numbers, most business owners would rather fill a filing cabinet and focus on other tasks at hand. We all know it can’t be that way because a balanced budget and thorough records are keys to success in business. All large companies have sophisticated accounting and bookkeeping procedures in place; they know just how important financial efficiency is to their bottom line.

If you own or manage a growing business, you need to familiarize yourself with the financial side of things. Read on for a brief rundown on the differences between bookkeeping and accounting.


Bookkeeping is a business’ collection, organization, storage and access of its financial records. This process smoothes daily operations and ensures detailed records are kept. An efficient bookkeeping system should be able to produce accurate and timely financial statements, tax information and internal assessments on demand.


Accounting is a more general term than bookkeeping, but it also carries more weight. Where a bookkeeper is tasked with maintaining financial records day-to-day, an accountant’s responsibilities can include the following:

  • Planning and detailing bookkeeping processes,
  • Creating checks and balances (controls) within the bookkeeping process,
  • Proofing collected financial records for efficiency,
  • Analyzing and predicting financial trends based on individual results,
  • Working with bookkeepers to ensure the process meets all needs,
  • Understanding the economic market
  • much more!


Businesses are made up of a variety of interconnected, moving parts– like a machine. If you build a machine, you want all of the parts working in unison. Imagine a bookkeeper as the essential components of your machine, the ones that keep it running every day. Bookkeepers must be as accurate as they are diligent in accomplishing their tasks, regardless of repetition or an increased workload. This work is demanding, so it is sensible to bring in an accountant– in this scenario: the oil for your machine. Accountants work with your bookkeepers to smooth out all of the hiccups and snags that can happen when you own a business.

Ensure your machine is running smoothly: contact Liu & Associates today for your accounting needs. Our accounting experts can ensure all of your business’ needs are met by working directly with you and your bookkeeping staff. Whether building a system from the ground up or overhauling existing processes, Liu & Associates can provide unparalleled financial guidance and support. Contact us today for a comprehensive consultation with our highly trained professionals.