The Differences Between Accountant and Bookkeeping Services, Brisbane

As most aware, costs are rising. These days, 57% of all businesses in Australia are facing increased business costs.

If you run a small business, this figure likely includes your business. With prices going up worldwide, now is the time to make sure your finance department is in good shape. Bookkeeping services in Brisbane will give your business a sound financial future in these uncertain times.

If you’re not sure about the difference between accountants and bookkeepers, keep reading!

The Basics

The key difference between a bookkeeper and an accountant is the scope. Bookkeepers are for everyday services whereas accountants are for bigger and less common events.

A bookkeeper is involved in the everyday operations of a business. This includes paying employees, accounts receivable, and payment processing. A small business owner may be able to perform these day-to-day tasks easily. However, as a business grows, a trained bookkeeper will make things run smoothly.

An accountant is also important, though they focus on taxation and audits. An accountant knows the fine print of macro tasks that keep your business operating.

A good way to look at it is that bookkeepers will be the first step in the accounting process. Bookkeepers gather the information and the accountant uses that information in financial statements.

Both positions are extremely valuable to your business. The best scenario is to have both by your side. Having a bookkeeper and an accountant on your team will make for a strong finance department.

Taxes

Taxes are integral to a business. As a company grows, it can get harder and harder to keep tabs on it as a business owner.

Taxes are something that needs to have an eye on it year-round. Year-round taxation-related items would be GST reporting or withholding tax on employee paycheques. Bookkeepers will be your eyes as you go about running your business!

Bookkeepers will also close the books at the end of the financial year. They will get everything together for your accountant to get the tax returns done. Bookkeepers will make sure that everything goes according to plan at the end of the year.

Accountants will be the most present during tax season. They handle the returns with the information provided by your bookkeeper.

Accountants will also help business owners with determining potential tax write-offs or deductions. Ultimately accounting services will help you save money by keeping you informed.

Monitoring Cashflow

As your business grows, accounts payable and receivable can become difficult to manage. These are all streams that come and go from the business. Accounts payable are especially tricky as they include time-sensitive items.

A bookkeeper will have time dedicated to keeping on top of your accounts. They will also input the data into your filing system. This way, they will be able to create reports that will affect future business decisions.

A bookkeeper accumulates data about the financial transactions of a business. Using this information will be key in creating a budget for the next year.

Within your accounting software of choice, bookkeepers will process payments on the backend. This ensures that everything is on the table should there be an audit.

Within the umbrella of day-to-day cash flow, bookkeepers will be on top of bank feeds. Bank feeds will give important and current insight into how the business is doing. Having a dedicated person for keeping an eye on these things can take a huge weight off your shoulders!

Reports

As a business owner, it takes a lot of time to interpret your raw data. Even if you’re good with numbers, it’s easy to overlook things when you’re busy. This is where reports from your financial team can help you.

Reports put together by your financial team give you valuable insights into the performance of your business. This will dictate what your next year will look like.

Your financial team will go through your raw data to make everything cohesive. The relevant information will be in one place so you can go over it quickly.

Reports on day-to-day topics can be put together by your bookkeeper. Your bookkeeper can put together a report of your top-selling products or services. This way you’ll know if there are necessary price adjustments to be made in minutes.

Your accountant will put together financial statements. These statements will help you make big decisions for your business. Financial statements are broader than the reports you will receive from your bookkeeper.

Keeping Tabs

While your staff will be working for the good of your business, keep in mind that mistakes happen. Any instance in which there will be someone taking a payment opens you up for errors.

Having someone who’s able to catch these mixups fast can save headaches later down the line. Bookkeepers will be your first line of defence for all things for accuracy.

A bookkeeper will be working closely with your business. They will be able to let you know when something isn’t right the day or week it happens.

Bookkeeping services in Brisbane keep everything close to home. This way, you won’t have to worry about needing to keep track of these things by yourself. Your time is valuable!

Accountants will still be able to keep tabs, though not as closely. Typically, when an accountant notices something off, it will be months later. In such cases, it will be harder to fix and the correction may take some time.

Bookkeeping Services In Brisbane

Sometimes it’s tempting to handle bookkeeping or even accounting all on your own. Even if you have a background in finances, having a dedicated accountant or bookkeeper will save you time and money.

With a solid finance team on staff, you’ll get the peace of mind of knowing your business is in good hands. Professional bookkeepers will catch mistakes before they become costly. Accountants will help you make big decisions for your company.

Interested in bookkeeping services in Brisbane? Schedule a call with us to talk about the future of your business!