“Oh I already have an accountant.”
I hear this statement alot…..so much so that I have decided to write my very first Blog post about the difference between accountants and bookkeepers. So many people out there think they do the same thing, however their roles are quite different.
Accounting and bookkeeping are business functions essential to running a business. To the untrained eye, the functions can seem very similar as they are both concerned with the financial data of a business.
Accounting involves analysing the financial data that has been prepared by the bookkeeper. This data may be reports, financial statements or transactions. They do this following a standard of accounting principles, requirements and standards. They interpret the financial situation of a business in order to make key decisions. This is generally done annually with SME’s. Accountants are required to hold a bachelors degree, or become a certified public accountant or CPA, which is a higher level of expertise.
Bookkeeping involves recording the transactions of a business on a day to day basis. The set up and maintenance of an accounting software such as XERO is also the job of a bookkeeper and most become experts in their chosen software. Bookkeepers are the middleman between accountant and business owner, by ensuring the books are well maintained and up to date, laying the groundwork for the accountant to do their job without overcharging the business owner. The accountant has less work to do at the end of the financial year when a good bookkeeper has kept the financial records for a business accurately. Accountants charge higher rates so if they are doing the job of a bookkeeper the client will be paying a higher bill at the end of the year. Australian bookkeepers are required to hold a Cert IV in Bookkeeping or Financial Services Accounting. They must also be a registered BAS agent or be able to facilitate BAS services through a registered agent. Most good bookkeepers belong to a reputable Bookkeeping association such as the Australian Bookkeepers Association. This ensures they keep up to date with the ever changing rules and regulations of the industry. Of course Bright Cloud Bookkeeping hold all of the above.
I can take care of all your bookkeeping, BAS and Payroll needs at Bright Cloud Bookkeeping.