Bookkeeper vs. Daily Money Manager: What's the Difference?

Dealing with finances and knowing the state of your accounts is one of the most crucial aspects of a business. However, being on top of your financial affairs is not limited to businesses only. As a working individual or even just someone who deals with transactions involving money (bills, budgeting), it pays to be on top of things.

To the casual observer, bookkeeping and daily money management are one and the same. This is not the case at all. It is true that both professions deal with financial data and generate financial reports. However, there are multiple distinctions between the two professions.

If you are a busy entrepreneur, a professional who wants to spend more time with their family, or whether you’re just someone who needs help with managing their business finances, you will benefit greatly from hiring a bookkeeper.

On the other hand, if you are an extremely busy individual, juggling your career and family, or an elderly citizen who needs assistance with paying their bills and filling in tax forms, you will likely benefit from employing a daily money manager.

Job Description

Bookkeeper

A bookkeeper is in charge of the day-to-day financial transactions of a business. Bookkeeping entails recording sales, receipts, purchases, and payments into the ledger. The scope of work can then extend to creating financial reports, but mainly, bookkeepers are in charge of recording the transactions of a business and to reconcile the credit and debit entries.

Daily Money Manager

A daily money manager is someone who professionally takes care of the personal finances of an individual. Essentially, daily money managers assist families or individuals with any transaction involving money. This can include but is not limited to, paying utilities, creating a budget plan, keeping track of the expenses, and duly recording them. Daily money managers are usually employed by families to assist older adults with their financial service needs. These professionals are more ideal in helping persons with disabilities.

Advantages of hiring a bookkeeper

A good bookkeeper will keep track of your business’ income and expenses. This allows you to have a general idea of whether your business is gaining cash flow or you’re losing money. Bookkeepers accomplish this by updating the daily ledger and making sure everything is accounted for.

A professional bookkeeper is someone who keeps an organized record of your finances. This is especially important when you would need to provide pertinent information to potential investors, clients, and the IRS.

At the end of it all, bookkeepers produce a comprehensive review of your financial statements and analyze this data so you can keep track of the inflow and outflow of cash in your business.

Advantages of hiring a Daily Money Manager

A professional daily money manager is recommended for individuals who need help in managing their finances. Assistance with bills and budgeting is especially needed by the elderly and people with disabilities--the main clientele of daily money managers.

For instance, an older adult living alone might feel too overwhelmed to deal with monthly budgeting, paying utilities, health insurance, and staying on top of their financial situation. This is where a daily money manager will come in to handle the payment of bills, fill up tax forms, make sure their contribution to insurance is up to date, and assist them with bank transactions.

So, depending on your particular needs, you will benefit greatly from hiring a bookkeeper or a daily money manager.