What does a bookkeeper do?
A bookkeeper’s role is quite varied. They perform everyday tasks that contribute to the overall financial success of your business.
These tasks can include:
- Keeping your financial information organised and easy to understand
- Overseeing your business bank accounts to make sure they’re in order
- Sending your invoices to clients and following up payment (known as accounts receivable)
- Managing creditors and paying bills
- Preparing your financial statements
- Managing your payroll
- Preparing your Business Activity Statements (BAS)
All tasks that, if you were to do them yourself, would take considerable time away from running your business.
What does an accountant do?
An accountant takes the information the bookkeeper worked on and uses it to help set your business strategy and minimise your tax contributions.
Among their tasks are:
- Preparing budgets and conducting audits
- Reviewing financial statements and creating reports
- Analysing the cost of your operations
- Completing and filing income tax returns
- Advising on financial decision making
An accountant can be an important asset for your business. Their expertise and advice helps you develop your business’s plan for the future.
Deciding who’s right for your business
A bookkeeper is generally more affordable than an accountant, especially when your business is in its infancy and money is tight.
They can take care of a lot of the day-to-day business finance tasks that you may not have time for.
Work out what you’re keen to offload. You might find you only need to employ a bookkeeper for a few hours a week.
As your business grows, your accountant plays a larger role. None bigger than at tax time.
They make sure your business meets all its tax obligations. A good accountant also leaves no stone unturned to find deductions and incentives your business is eligible for.
Accountants charge more than a bookkeeper, but they offer peace of mind come tax time. Their expertise in financial matters also means they can become a quasi-business partner, planning for your business’s success.
If you need help with the everyday organisation of your business’s finances, a bookkeeper could be the best choice. When you’re planning for the future, consider an accountant.
Remember, though, time is money. Make sure your business bank accounts are separate from your personal ones or you’ll be paying someone to wade through your statements. To help get you on track, open a Business+ Account and Business+ Saver in minutes with Great Southern Bank Business+.
In the end, you’re likely to need both a bookkeeper and an accountant at various stages of running your business. Thankfully, they’ll work well together, making sure your financials are on time and accurate.
Let’s leave the grudge match to Godzilla and Kong.
Remember to check out our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
