Accounting is made up of several different fields, and one of the most practical aspects of accounting is bookkeeping. Bookkeeping is the process of tracking the financial activities of a business. Even though it may seem like a simple task, this meticulous part of accounting can easily consume a lot of time and can be daunting to someone who is just starting out a business or trying to adhere to franchise compliance.

Without financial reports, a business will struggle to understand how to successfully grow since there will be no evidence as to where their money is being spent. For franchises, having financial reporting is one of the most successful ways to adhere to franchise compliance contracts.

There are many different aspects that are classified under the umbrella of accounting, and bookkeeping is one of them. An individual must pass the Certified Public Accountant (CPA) exam to be considered an accountant, while the requirements for a bookkeeping title are much more subjective. Therefore, an accountant may be a bookkeeper, but a bookkeeper cannot be an accountant without the required certifications.

CPA stands for “Certified Public Accountant” and it is a license that is achieved in the accounting field. Each state has a Board of Accountancy who provides the license, and it is given to an individual after they complete a rigorous test called the CPA exam.