What's the difference between a bookkeeper and an accountant?
Accounting Quotes
from local accountants
Ever been confused about the difference between a bookkeeper and an accountant? If you need some kind of financial administration, read on to find out!
Bookkeepers are the 'keepers of the purse' - the people who record transactions into journals and ensure that the numbers are available at the end of the month for an accountant to prepare formal financial statements. A bookkeeper is an administrator, and they can also process payroll, pay invoices and ensure that invoices are sent out. There are 8 steps in the bookkeeping cycle, and in small and medium companies often the bookkeeper will complete all the steps in the cycle, but sometimes will just enter the transactional data to give to the accountant.
Accountants design the systems that a bookkeeper will use, set it up, and monitor the results. They take the data entered by bookkeepers and prepare monthly financial statements and tax returns. They can also prepare budgets for management and manage those budgets, depending on how an organisation runs. Also see our article about accountants here.
Every business's needs are different
Service Central recommends that you look at the items you need done and evaluate whether these jobs are 'mechanical' or 'strategic'. Even if your current requirements are strategic (for example, you need the systems set up) you can often take over the 'mechanical' parts yourself or hire someone skilled but less expensive than an accountant to complete the work on a monthly basis. When you list your bookkeeping or accounting job, remember to include the detail on all parts of the job. If you don't know what you need done, don't despair - it's best to go for an accountant first to consult and get some direction.
-
Most sole traders and micro businesses undertake the bookkeeper role themselves using some form of accounting package. Current web based accounting systems like BAS-I.C ( http://bas-i.com.au ) or XERO ( http://www.xero.com/ ) provide a platform to record, manage and report revenue, expenses and Goods and Services Tax (GST).
over a year ago by David
Accounting Quotes
from local accountants
