The Difference Between Bookkeepers And Accountants
There will be many Sydney business owners that, at one point or another, are told that it is probably time to call in some professional help with the accounts. Some will say that it is time to go and talk to an accountant, while others will suggest hiring a bookkeeper to come in and make sure everything is in order. This raises a question that not all first time business owners know the answer to: what is the difference between a bookkeeper and an accountant? Knowing the answer to this question will help you understand the financial side of business a little better – and hire the right person.
There are some simple similarities and differences here
It is important that all business owners understand the difference before hiring a bookkeeper or accountant. A bookkeeper is someone employed to go over the books, keep an eye on the financial aspect of the business and keep owners up to date with the current situation. It is a way of outsourcing a task to a more reliable and experienced individual within the team. Accountants are a little different. They will take things further with deeper analysis and understanding of the data. They can also provide financial advice, especially in regard to taxation.
There is also the issue of qualification and experience
Accountants require a high level of experience, training and certification to work for a company. This takes years of experience and know-how to ensure that they understand the finer details of the profession, and can handle accounts in a responsible manner. If you need a good bookkeeper in Sydney, they won’t have to have so many requirements, but certification and membership with professional associations do help. The choice here depends on the job you have for them, the complexity and that need for a fully qualified professional. This doesn’t mean that bookkeepers aren’t skilled in many tasks – they just have an upper limit.
There are plenty of reasons for business owners to call in a bookkeeper to help them with the records of the business. Bookkeepers can keep an eye on the day-to-day expenses and incoming money so payments and issues don’t fall through the cracks. This means that they will process all sorts of paperwork and data into the system on payments, receipts and invoices. They will also be responsible for managing that system on a regular basis, creating financial statements and dealing with the payroll. Some will also work with calculating GST and preparing your BAS. This is all vital work that all companies need to manage in an effective manner. Without a bookkeeper, payments, wages and receipts may not add up at the end of the month.
However, accountants can do more
Accountants are able to work with financial data and reports on a higher level. This goes beyond compiling data and moves into the world of analysis and advice. They are therefore able to help to assist a business with the best route forward, vital information on taxes and corporate compliance and superannuation advice. Furthermore, they can conduct an in-depth audit.
So, which do you need? Is it a bookkeeper or an accountant?
Your need as a business owner will depend on the situation. If you are after somebody to deal with the data entry, payroll and generally keep everything flowing smoothly, you need a bookkeeper. These helpful aides will stay on top of the figures and reports so you don’t have to. However, if you want deeper financial advice, auditing and tax supervision, it is best to go to a qualified accountant.