Best Bookkeeping Services near Brick, NJ

You Need to Understand Differences Between Accounting and Payroll As a business owner, you need to understand the differences between accounting and payroll. While accounting and payroll overlap, the two departments differ substantially. Accounting keeps track of their business’s financial health. Payroll focuses on paying employees, taxes, and benefits. In this article, we discuss the similarities and differences between accounting and payroll. Understand the Purpose of Accounting Accounting keeps track of all the revenue and expenditures a business sees. Yes, sometimes an expenditure can be payroll, so in this instance, there is overlap. Payroll, on the other hand, only refers to the process of paying employees. Rather than speaking in abstract terms, we should speak about concrete examples. Say, for instance, your business needs to replace the roof on your primary office. Replacing a roof costs a lot, and your accountant or accounting department should record how much the work cost. These costs have nothing do with your payroll, though. With the exception of a situation where you own a roofing company and are paying your own employees to do the work, it’s probably necessary to hire a roofing company and pay them. Your accountant will keep track of these expenses, and use them to offset your tax liabilities come tax season.