Having a professional and reliable accountant in any business is essential when it comes to prolonging the financial success of the company.
Of course, before going out and seeking an accountant, it is important to truly know the difference between an accountant and a bookkeeper.
The two may sound similar in title, and although it is true all accountants could but would rarely want to, undertake the role of a bookkeepers.
However many bookkeepers are not accountants and some cases do not have formal accounting training.
Bookkeeping is the task of systematically keeping track of all income, expenses, receipts and payments as well as meeting all of the compliance required in regard to GST, PAYG and super.
The bookkeepers job is to take the accounts up to trial balance. The trial balance is for the period up to when the ledger accounts are to be closed, generally at the end of a quarter or financial year.
When the information is closed off, it is passed over to accountant.
An accountant is more than an advanced bookkeeper and is extremely familiar with the financial information collected by the bookkeeper.
Typically, the accountant finalises the accounts and prepares financial statements for management accounting and business management purposes or for tax return purposes.
The bookkeeper is similar to the assistant coach in a sporting event. They help prep the team and get them ready for a game, but it is the coach who actually takes charge and makes all the necessary decisions. An accountant is more than an advanced bookkeeper and is extremely familiar with the financial information collected by the bookkeeper.
Typically, the accountant finalises the accounts and prepare financial statement, either for the company, for business practices or for tax purposes.
Are you doing the ‘books’ this weekend and scrambling to lodge your BAS on time?
For most in small business the answer to this question is “yes, catching up on administration and, in particular, bookkeeping!”
If your tap leaks you call a plumber, when your car needs a service you take it to a mechanic. If you need a tax return or financial statements prepared you see an accountant
Unless of course you are experienced and qualified in these areas of expertise and can do it yourself.
Why do business owners struggle to do their own bookkeeping when it is not their passion, their profession or field of expertise, when an experienced bookkeeper can take care of it in a more efficient and timely manner.
We acknowledge there are times when needs must. When there are insufficient funds to pay for professional services or there are a surplus of hours not currently generating income. Even then you have to ask is that the best use of the business owners time.
There comes a time when all small businesses outgrow the DIY bookkeeping model or having their partner do the accounts. Often much to their partner’s delight and relief!
What does a professional bookkeeper offer?
- one day per month dedicated to your bookkeeping or more if necessary
- access to your data 24/7 via online accounting
- BAS return preparation and lodgement
- accountant ready accounting files
Reclaim your weekends with the family. Stop the anxiety of completing your bookkeeping and BAS, let us take care of it for you.