Accountant Vs Bookkeeper: What’s The Difference?
Accountant Vs Bookkeeper? It’s a question many small to medium businesses ask us when they’re considering outsourcing their financial duties. Each of these professions play a vital role within a business, but what is the difference between an accountant and bookkeeper?
In this blog, we look at the general duties and overall benefits of choosing an accountant and/or a bookkeeper.
What Is An Accountant?
The principal role of the accountant is to review, interpret and report on the financial records of a business. An accountant is qualified to analyse the recorded financial data, so strategies can be implemented to improve the financial health of the business.
Their expertise includes a vast range of services for both the business and the individual. Services may include company, trust and partnership set ups, cash flow management, tax minimisation strategies, estate planning and more.
Accountants may offer a broad range of financial-related services in line with their specialisation. There are many types of accountants including CPAs, tax advisors, auditors, forensic accountants and more.
If you are selecting an accountant, it’s important to understand their capabilities and how their services can assist your enterprise.
Some general accounting services may include:
- Preparation of financial statement
- Tax returns
- Business and instalment activity statements
- Company, trust and partnership set ups
- Structuring options
- Asset protection & estate planning
- Advice on the sale or purchase of a business
- Cash flow forecasting
- Accounting software training
Benefits Of Hiring An Accountant
Your accountant is your guide to greater financial certainty and success — and is a valuable resource throughout every stage of the business life cycle. From choosing the right legal structure to managing cash flow and planning for growth, your accountant can provide invaluable advice and insight for small to medium enterprises.
What Is A Bookkeeper?
In the simplest of terms, a bookkeeper is the person who is responsible for effectively managing a business’ books. This in turn allows a business to know where they stand financially.
Bookeeping responsibilities include recording and entering accurate financial information, handling accounts and managing payroll.
Bookkeepers may crossover into managing some of the accounting processes by preparing tax returns and annual financial reports. However, there are some key differences between accountants and bookkeepers and their key responsibilities.
Some common duties for a bookkeeper include, but are not limited to:
- Data entry
- Bank reconciliation
- Accounts receivable
- Accounts payable
- Monthly reports
- Keeping up with the latest legal regulations
Benefits Of Hiring A Bookkeeper
There are many reasons why small and medium sized businesses turn to bookkeepers to handle their books. Hiring a bookkeeper allows a business to focus on what they do best, while the bookkeeper can concentrate on ensuring records are up to date and all accounts and payroll duties are actioned. Bookkeepers make the accounting process more streamlined, so any financial statements or tax-related issues will be dealt with in the most efficient and cost-effective manner.
Accountants & Bookkeepers @ Greenview Accounting Group
Accountant Vs bookkeeper — or perhaps you need both? If you are unsure what financial-related services your business requires, we can help you gain some clarification. Get in touch with our team at Greenview Accounting Group — and discover what you can achieve with our accounting and bookkeeping services. You may phone our Bunyip or Narre Warren offices Monday to Friday on 03 5629 6133.
* The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of any other agency, organisation, employer or company.