WHO IS A BOOKKEEPER
A bookkeeper can be described as a person who performs all the administrative and operational duties that are related to the management of the financial activities of the business.
The functions of a bookkeeper include the following:
• Creating receipts and invoices for clients
• Ensuring that all payments and expenses are processed and managed
• Ensuring that bank reconciliation is properly done so that everything runs smoothly, making sure that what is meant to come in and go out is achieved
• Make sure payroll is processed
• Removing regular reports from the accounting software of businesses such as balance sheet, profit & loss and other statements of business activities
WHO IS AN ACCOUNTANT
An accountant is a person who provides financial and top level tax advice. An accountant will also lodge with the tax office your compliance work including records such as PAYG tax and company income tax and much more. The role and function of an accountant includes the following:
• Helping to setup financial reports as well as the structure of the organisation along with balance sheet, profit & loss and projection reports of the organisation
• Planning and forecasting of tax payments that will need to be made
• Giving reports to the management of the organisation on its financial state
• Assisting the bookkeeper with their duties enabling them to be more effective and efficient
• Helping the organisation discover areas where they can reduce costs by analysing the financial reports without harming the status and brand of the business
Bookkeepers deal with on-going financial businesses of the organisation while accountants deal with providing financial and tax advice.
Another question asked by business owners and a decision they have to make is if they should hire a bookkeeper or an accountant or both. Your decision depends on the state of your business and what you hope to achieve in the future.
You can choose to get an experienced individual to combine both roles. What is important is that the job is done effectively ensuring all your figures are in order and the business is developing and growing.