Accounting vs. Bookkeeping: What Does Your Business Need?

It's the end of the month, you sit down to work on your finances, and you suddenly realise you're overwhelmed. Your business has grown too large for you to handle the books on your own! You know you need some help, but you're not sure exactly what you're looking for - a bookkeeper, an accountant, or both?

What is a Bookkeeper?

Collaboration is the key when considering what a bookkeeper does. Although reconciling daily transactions is certainly part of what they do, today bookkeeping is far more than just data entry and record keeping. Handing over the financial tasks that you can't do (or can't do well) to a bookkeeper gives you more time to concentrate on growing the creative side of your business.

At the next level, bookkeepers are part of your team. They work with you to establish your business processes, understand the nuances of your business, and provide the reports that enable you to accurately assess your financial health. By engaging a bookkeeper, you'll be able to determine your financial goals, create a plan to reach those goals, and have access to the financial analysis you need to stay on track.

You'll have the tools to make better financial decisions without having to gather the information yourself. Another great thing about bookkeepers? They use financial language you can understand!

The Role of an Accountant ...

Although the role of bookkeepers and accountants overlap, bookkeepers generally work directly with accountants to prepare taxes and financial statements. Often the bookkeeper is the expert at using the software that tracks accounts and generates these reports. Our team uses the accounting software Xero because it allows us to connect seamlessly with our clients and to manage your books efficiently and securely.

An accountant, on the other hand, takes a higher level view of your business. They may perform some of the same tasks such as planning, budgeting, and analysis, but they are unlikely to be involved with the day-to-day business, or actually recording the transactions. Accountants are usually registered Tax Agents and can provide advice, certainty, and representation to the ATO on taxation matters.

Making the Right Choice for Your Business ...

When considering which service you need, it's a good idea to start by making a list of the financial tasks you wish to accomplish. It will be much easier to determine whether your business requires a bookkeeper or accountant if you know what you need. Just remember if you are looking for Tax or BAS Services, be sure to find a registered agent. Neither accountants nor bookkeepers automatically provide these services unless they are registered!

Interested in how we can help you make better business decisions? Get in touch with us today



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