If you’ve ever asked yourself, do I need an accountant or a bookkeeper or both? There’s a very simple answer … Eventually you’ll need both and they should work in unison for the success of your business.
It’s similar to a doctor and a nurse.
The doctor is the specialist and oversees the bigger picture, while the nurse supports the doctor, looking after the day-to-day needs.
In this blog, you’ll discover the difference between a bookkeeper and an accountant, and why you need both to grow a successful small business.
Think of a bookkeeper like a nurse
Think of a bookkeeper like a nurse – a professional who does the day-to-day work such as allocating expenses and paying bills – while the accountant is more like a doctor, analysing data and providing specialist advice.
A profitable business needs both.
And your bookkeeper and accountant should work in partnership together so you benefit from their combined skill sets.
What’s the difference between a bookkeeper and an accountant?
According to Xero, bookkeeping typically consists of: payroll, invoicing, receipts and bills, and recording business transactions, while accounting is about financial statements and reports, budgets, tax returns and analysing business performance. Link on words https://www.xero.com/au/glossary/accounting-bookkeeping/
What does a bookkeeper do?
Bookkeepers are the first step in your accounting and financial process. A bookkeeper is in charge of your daily financial records and cashflow. They create financial records that your accountant can later analyse.
You can read more about what a bookkeeper can do for you in more detail here. Link to what is a bookkeeper blog
What we do at Accounts All Sorted
- Day-to-day bookkeeping: Reconciling account transactions, quoting, managing bank feeds, generating and paying invoices, collecting debts, making payments.
- Updating your bookkeeping software (for example, Xero, Quickbooks, MYOB and so on)
- Software training
- Compliance and maintaining up to date records
- Payroll and super
- Admin support and data entry
- Business advice and strategic direction
- Assisting your accountant and keeping you prepared for tax
- Preparing financial statements
What does an accountant do?
Your accountant will use the information your bookkeeper has prepared to provide insights and strategic advice for your overall business and future. They will verify and analyse data, make adjustments, generate accounting reports, perform audits and manage your tax returns.
Bookkeeper vs accountant: Who do you need?
Benefits of a bookkeeper
- A great bookkeeper can specialise and work in specific industries, which is a huge advantage to you as a business to have someone who understands your specific industry. They can give strategic advice based on the patterns they see in your day-to-day books.
- Based on the tasks you need your bookkeeper to do, you can work with them on a regular basis, at a minimum once a quarter for your BAS or, better still, monthly for your profit and loss and other reports.
- An experienced and certified bookkeeper will give you peace of mind that your finances are being taken care of regularly, and work with your accountant, so you can get on with growing your business.
Bookkeepers are there to support your business just like a nurse would a doctor.
Benefits of an accountant
Meanwhile, an accountant is like a doctor; there to perform at a specialist level, oversee the operation and analyse the situation.
- An accountant can give you an overall view of your business’s financial state, along with strategies and recommendations for making financial decisions. This will complement what your bookkeeper does and your bookkeeper can help implement those strategies.
- Accountants often bring valuable expertise to your business by way of taxes and investments. When you work with your accountant on a quarterly or, in most cases, an annual basis, your bookkeeper will keep everything moving more regularly for you so you are compliant come tax time.
- Based on their certification and expertise, accountants can also advise on higher level issues in a growing business.
Bookkeeping for small businesses
A great bookkeeper and accountant are an integral part of your growing business, and should work together for your success. If you’re ready to build a financial team around you, Accounts All Sorted is ready to help you with:
- Full service: We take care of all your bookkeeping requirements so you can work on your business.
- Shared service: We work with you to ensure you remain compliant and up to date.
- Catchup bookkeeping: Ideal for those who have fallen behind and need assistance in getting their books up to date.
Reach out and let’s have a chat to see how we can help ~ Click hereTalk To Us Today