Do you need a bookkeeper or an accountant?


Choosing between a bookkeeper in Melbourne, or an accountant for your business can be hard. This is because so many people don’t really know the difference between a bookkeeper and an accountant.  Some don’t even know that there is a difference. However, the facts are that there’s a big difference between a bookkeeper and an accountant. To be able to choose the right one for your business, you need to know the difference.

What is a bookkeeper exactly?

When you’re hiring a bookkeeper in Melbourne, then you need to know that a bookkeeper is all about the daily financial running of a company.

A bookkeeper sometimes doesn’t have any qualifications, but they have all the experience needed to make sure that the everyday running of a business is going according to plan. They are responsible for all the purchases, the receipts, sales and payments.

They are doing all these things by making use of a logger or a journal. With the new technology, they are also now using computer software for this job. Software likes QuickBooks or Peachtree among the most famous computer software that bookkeepers are using. More details here.

What are the duties of an accountant?

An accountant is responsible for more than just doing the books and keeping the administrative tasks up to date. The main difference between an accountant and a bookkeeper in Melbourne is the fact that an accountant has a diploma or a degree, while most bookkeepers don’t have any formal qualifications.

The responsibilities of an accountant include:

  • Is to verify all data that’s entered on the computer;
  • Analyze the accounts, ensuring that everything is up to date, and paid for.
  • Perform audits and prepare financial statements for shareholders.
  • They file tax returns and make sure that the tax returns are filed on time.
  • They are responsible for all financial aspects and need to make sure that the money is spent wisely and not been wasted.

Do your business need a bookkeeper or an accountant?

Now, that you know the difference between a bookkeeper and an accountant, you need to know if you’re needing a bookkeeper or should you make use of an accountant.

The first thing that you should be aware of, before hiring an accountant, is that their salaries are much higher than a bookkeeper. This is because they have more responsibilities and they have qualifications and experience. If you’re business is still new and still growing, you might want to hire a bookkeeper in Melbourne instead of an accountant. Hiring an accountant is important for larger companies and companies that have the money for the higher salary of an accountant.

It is important to know the difference between an accountant and a bookkeeper, before you hire one of these two. You can’t hire a bookkeeper if you’re actually looking for someone that will be able to handle all the financial aspects of the business. However, it might be best to hire a company like, if you’re still a growing business, looking for cheaper ways of bookkeeping, that will still provide you everything that you will need to keep your books and financial needs updated.

Business Ideas for Home – Bookkeeping Services

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Bookkeepers are always needed, but it’s an industry that doesn’t require a great deal of space or start up income. This means that it has been a popular choice of home industry for many years.

What goes into a bookkeeping business?

Entrepreneurs and small businesses abound. It’s vital in any business that accurate and complete financial records be kept, otherwise it is highly unlikely that any kind of accurate business decision can be made, however most owners lack either the correct financial knowledge or the time or both to undertake this vital service themselves. They will look to an external bookkeeper to help them with this critical task.

What types of bookkeeping services are there?

At its most basic, bookkeeping only refers to the process of compiling the financial information records. This is, of course, bookkeeping at its most simple, and many bookkeepers make sure that they are much more qualified then this- in fact, many are actual accountants and can offer the full host of financial services the business may require. Even those who are not full accountants will also offer services for which they are qualified, like tax preparation, to allow their clients more holistic services and help them fully with their financial tasks. This also, of course, increases the revenue a bookkeeper can earn. More details here.

Is there a future for bookkeeping?

Accurate financial records are a vital part of the tax cycle, so it’s unlikely to ever ‘go out of fashion’. Most people are either scared of or simply bad at handling their own finances and money. Even those who could often don’t want to, and many people resent having to undertake financial reporting. It’s a field that’s here to stay and while you may face stiff competition, a determined and quality individual can make it work.

What are the pros and cons to a bookkeeper business?

Of course, with your host of great clients will come the dubious ones. It’s inevitable you will get the clients who want to operate in the grey area of the law, or even downright cheat. Skirting the law is a dangerous game and will not work long time for you. Of course, even if you avoid these, working from home attracts distractions like family- and you cannot afford to mess up a client’s finances because of this. All the same, it’s attract vie as an at home business, give n how little space and start up costs are required.

Do remember that bookkeeper is a job that carries the requirement for real professional accreditation with it. You will need to be able to demonstrate professional membership and proper accreditation with the relevant bodies and authorities for each service you wish to undertake. It’s not an unskilled post, and legalities in Melbourne insist on certain minimum standards being met. Overall, it’s not the easiest of home business ideas to break into, but a very rewarding and potentially lucrative one if you are able to meet the requirements necessary to be a bookkeeper.

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Six mistakes to avoid while choosing a bookkeeper

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choosing a bookkeeper

Hiring a Bookkeeper is becoming the most major demand of present time. If you want or you don’t want, you find it mandatory to hire a bookkeeper for running your business without any hurdle and resistance. All those business runners, who are very choosy in choosing the bookkeeper often, do many mistakes in hiring him. The reason is, extra sensation gives a bad injury. Here are six mistakes which are very common while hiring a bookkeeper.

Over focus on external traits rather on internal:

Many of the screener often tries to judge the person by his looks, way of speaking and body language. It is not enough while hiring a bookkeeper. You would have to read the exact mental capacity and calculation power of the bookkeeper. Bookkeeper Melbourne will be like your helping child. So, find out every possible trait in him.

You can best do a psychological test before hiring him. It will help you to reveal out every inner traits of the bookkeeper. Moreover, you can also conduct a neuropsychological testing stage before actually hiring the person. It will let you know about the nuro-motor skills, neurological skills and mental skills of your bookkeeper.

No conduction of written test:

Keep in mind! The Bookkeeper’s looks and his external skills are not going to help you anymore after the hiring process. He will be the central back for your business. So, he must be very strong in what his job is. So, for assuring his calculation skills you may conduct the written test filled with complicated calculation tasks to do in limited period of time. Most of the business runner give no weight age to it and thus takes big problems later.

Hiring of multi Bookkeepers/multi employees for same task – A big mistake you can do:

It is one of the biggest mistakes that a business runner can do. A business runner thinks he is doing very well by hiring any people for the same task or by assigning many employees for the same task. No, this is not right. It is like many cooks just spoil the broth instead of cooking it extremely well. So, avoid this mistake.

Hiring on oral tests:

Again, I will underpin that bookkeeping is a practical task so it demands some practical testing. If you will hire a Bookkeeper Melbourne only on oral testing then you will do a big mistake.learn additional tips about choosing a bookkeeper at

Follow the references:

choosing a bookkeeper

Here you are going to hire the person for your complicated task so avoid hiring the person with references. You are in need of really professional person. Only references can ruin your whole game.

Short cut lover:

The bookkeeper should be hardworking and should be able to do work keenly. If you will hire the bookkeeper who is master in taking short cuts then you will welcome the future blunders for you.
The above are 6 mistakes that are very common to commit while hiring a bookkeeper. Finish thee mistakes and pick the Bookkeeper Melbourne in accord of your need.

Bookkeeping Explained

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Bookkeeping is the duty to record the financial transactions and information pertaining to a business, on a day-today basis. It is concerned to ensure that records of financial transactions for those individual are accurate, up-to-date and comprehensive. Therefore, accuracy is important and vital to that bookkeeping process.

Bookkeeping must not be confused with accounting. Bookkeeping is more the preliminary work that provides the information that goes into the accounts.

In fact, if you compare the differences between bookkeeping and accounting then you will reveal the true essence of the definition of bookkeeping.

What does bookkeeping involve?

Common financial tasks and transactions that are involved in the bookkeeping process are mainly including:

• Billing for services provided or goods sold to clients.
• Recording customers’ receipts.
• Recording and verifying and invoices from suppliers.
• Paying every supplier.
• To process the pays of employees pay and the related reports for the governmental.
• Monitoring the individual accounts receivable.

• Recording and other adjusting entries.

• Providing financial reports.

How is bookkeeping done?

Nowadays, the bookkeeping process is performed with the use and help of computer softwares. QuickBooks (from Intuit) is – as example– a low-cost an accounting and bookkeeping software package. Bookkeeping requires knowledge of credits and debits and a basic understanding of financial accounting process, which is including a balance sheet and income statement.

The difference between Accounting and Bookkeeping

Katie Bunschoten, is the owner of consulting and bookkeeping firm; KHB Office is helping new businesses get up and running, and tutoring owners how to keep at the top level of accounting. A Small Business Blog had recently asked for her take on accountants vs. bookkeepers and when to hire them.

She says that ultimately bookkeeping is as literal as it sounds: it is the keeping of books i.e. the production of financial transaction records. Accounting is more to do with the analysis, reporting and even possibly the consulting and advice sharing based off of the back of these reports.

No transaction is exempt from bookkeeping, including loans given and received, sales and deductions as well as private expenses. Whatever goes in or out of the business is recorded with full accuracy.checkout this website for more information.

The double entry system of bookkeeping

The double entry system of bookkeeping is based upon a fact where every transaction involves two parts and that this will therefore affect two ledger accounts.

Can you guess what these two things are? …yes you’ve got it, debts and credits. Or outgoings and incomings, whatever you want to call them they are the cornerstones of your business.


Every transaction involves a credit entry in one account and a debit entry in another. Any errors occur when the books do not ‘balance’ i.e. the sum of all the debits do not tally up with the sum of all the credits.visit for more detailed information.

In conclusion, bookkeeping using bookkeepers, is namely the keeping of financial transactions, different to accounting in that it’s more the preliminary process where the data is retrieved and stored.

Build and keep a great relationship with your bookkeeper

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In the resent life of hustle and bustle, “Bookkeepers” are like the bliss of God for the business runners. The business owners don’t find enough time to poke their noses in the financial balance sheets, their accounting and calculations. Thus most of the business runners go for the option of hiring a Bookkeeper. You must have to keep in mind that hiring of a good and proficient Bookkeeper is not enough.

You would have to take care of his needs, his demands, and you must have to keep check and balance on him. Without building a warmth relation, you cannot expect extraordinary results. Your Bookkeeper will be like your second hand help, so be precautionary about him as much as you can.

Tips for creating a great relationship with your bookkeeper:

Do screening very wisely:

The best way of liking your bookkeeper is to hire the one which exactly fulfill your demands. It means, you would have to be very keen during the screening process of your Bookkeeper Melbourne. It will be like “prevention is better than cure”. Yes, get fully satisfied with the bookkeeper, his skills, his tactics and his ways of dealing with job. If all the things give an exact match as the “glove fits in the hand” then do screen the person. Otherwise go for another option.

Be friendly:

As you are going to put your all accountings, and your all financial payrolls in the hands of the Bookkeeper Melbourne, so you must be friendly enough to him that he can easily discuss the bumps and the dumps of the later issues. If a case come, where the Bookkeeper find something hard or if any issue strike the bank roll then instead of choosing wrong ways he can directly come to you and can discuss the real problem.

Check and balance in mandatory:

Becoming friendly does not mean put all the work burden at back and give a loose thread to the bookkeeper as much as he start doing whatever he want. No! This is not right way. Excess of everything is bad. You must opt for the central path. Keep checking the account sheets and the payrolls for sake of preventing from the major blunders.

Open the doors of communication:

Open the wide doors of communication for your Bookkeeper Melbourne. Make proper visits and hold proper periodic meetings. Communication gap can create many later problems.

Be patience:


Be patience in getting the result back from the bookkeeper. Keep in mind, handling of accounts is not a simple task. It demands very care and precautions. So, if bookkeeper demands little time for entering the feedback then let it be.see their website at to get latest updates.

Provide all mandatory facilitations:

Your bookkeeper can be in need of some extra facilitation like proper room environment, no noise and no entrance of extraneous variables. So, for sake of getting hundred percent results, you must give all the facilitations to your Bookkeeper Melbourne in accord of his demands.

Some Benefits of accurate Bookkeeping Accounts

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There are numerous reasons why keeping accurate accounts using bookkeepers will benefit your business.

Making Informed Decisions

Firstly, working with bookkeepers on your accounts will also help you make informed decisions about any issue. If you maintain your bookkeeping processes and completed them on a weekly basis then BAS returns, budgets, end of year financial statements and your tax return can be completed more efficiently.

Identifying Problems

Bookkeeping using your favorite software will help you identify any key problem areas especially as your accounts will be up to date. The reason for this is that you can regularly and more accurately be informed. You may have never thought about it but by keeping your books up to date by hiring a bookkeeper you could potentially save money. In fact it’s pretty much guaranteed as you will now be able to spot any insufficiency that may cause financial problems. For example, you could notice that your most recent marketing plan was not having the desired effect. You would then stop this particular campaign before you wasted any more money and change direction, maybe utilizing your marketing budget on something more productive. Ultimately you will have more time to promote your core business growth rather than wasting it following endeavors that are not working,

When tax time arrives you want to make sure that your business is able to deduct all expenses in order to reduce payable taxes. If your accounts are incomplete or not ready this may cost your business more in the long run. Moreover, it’s always great to have your taxes in order so you know exactly what your net profits are. This is where hiring a bookkeeper will come in handy

Business Expansion

When you want to expand your business banks will typically look for clean and up to date financial statements before making a lending decision. When you provide timely reports, all financial institutions will help and be better inclined to help your business with additional credit or increasing loans. By having regular re conciliation’s and engaging a bookkeeper to manage your books, your business will be seen by the bank with more credibility, when additional funds are required.

With accurate books, you will have a clearer picture of your business so you can make projections for future expenses and future income and also for upcoming project, and that is the way to give your business the right direction toward increasing growth. A business budget will help your management team to spot problem hotspots or even business wins and areas of growth that you can extrapolate on.

Cash Flow Projections

Furthermore, when managing your business you will need to focus on generations some cash activities, as cash is not equivalent to any accounting profit. By focusing on actual cash flow projections, it can provide an accurate indication of your business being able to meet short term obligations. When reviewing regular reports from debtors, you will be given a more accurate position of how quickly your clients pay you and you will be able to identify areas for improvement.

Bookkeeper task

To conclude, bookkeeping is essential for your business to develop for many reasons. Regular assessments and cash flow projection could in turn lead to business expansion. If you are looking for a bookkeeper then why not check out They can help with your inventory management, payable accounts, receivable accounts, payroll and much more.

Your Taxes: So I’m actually supposed to save my receipts?

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In my last column, I wrote what I hoped was an inspirational plea to get taxpayers to start tracking their income and expenses year round, and to make the effort now to get on track for 2011. In that column, I mentioned that I recommend saving receipts for seven years. My eyes were opened when the smartest woman I’ve ever met emailed me and asked, “So I’m actually supposed to save all our credit card receipts?!?”

She definitely made me realize that perhaps I have to take a step back and explain what you need to be saving! The best way to think of it is with the end in mind — the end being the dreaded IRS audit! If you are selected for audit, the IRS will randomly pick several categories to audit. For an individual they may choose charitable donations, or for a small business they may choose advertising and office supplies. They will take the balance of what you deducted and ask you to substantiate it.

How do you substantiate something? In the mind of the IRS, you need to prove both payment method and the expense itself. They believe, rightfully so, that you can come up with receipts that you didn’t actually pay for just by picking them up off the ground or borrowing them from friends. So, if you spent $100 at Office Max, you need to have a statement which shows payment method, such as the credit card statement or debit card statement showing the charge, and the expense receipt from the store. Sound tedious? You’re absolutely right, but those taxpayers who pay for everything on debit or credit card and save their receipts find that audits go quickly and painlessly.get updates, visit for more details.

What if you use cash? First, I recommend that you avoid using cash altogether. But, if you feel that you must, be forewarned that if you are ever audited, the IRS will be looking at your bank statements to show ATM or other cash withdrawals to prove the payment method. If you pull out $200 per week and have receipts showing expenses of $200 per week, they will probably be satisfied.

bookkeeping job

But, if you pull out $200 of cash per year and have cash expenses of $2,000 during the year, they will jump to the conclusion that you are probably bringing in cash into your business and not reporting it. Reporting the expense side of a transaction and not the income side of a transaction has a name: fraud! Trust me, you don’t want them going down that road!

Payroll Processing Services For Small Businesses

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Payroll Processing

Payroll processing can be a complicated task – it is not only complicated but it can be very time consuming as well. The time and resources that you spent on processing the payroll of your employees could have been spent to improve your business. Luckily, you can now outsource your payroll process to professionals who can do all the payroll processing services for you. This will allow you to have more concentration on core tasks.

This is important because you need to find constant ways on how to make profit and continue your business. As your business grows with time, other problems will start pouring in, craving for your attention. You will have to deal with pension plans, insurance plans, taxes and a whole load of paperwork. Having lesser administrative responsibilities is a dream come true to most business owners. Having the tasks of payroll processing out of the way can give you enough time to concentrate on other important matters.

Payroll processing needs a lot of complicated procedures and computations. You need to observe payroll regulations loyally. You have to calculate the payrolls with the right tax deductions. All boring tasks that needs alertness and focus. After all the hours of calculations, you need to sign checks and fill out the appropriate and necessary payroll tax work. Even if you have a number of employees with you, the task alone can take you hours and days to finish. This would slow down your progress of work as a business owner.

Hiring small business payroll services can help you save money and time and can help you process payroll more effectively. There are a lot of organizations out there that are composed of a team of experts in professional and legal fields. They have been in the business for a long time and have ample experience when it comes to working and managing on payrolls. With all this, they can easily process payroll, maintain records, calculate tax accurately, ensure regulation compliance, and lastly, hand out the paychecks to your employees on time.

Payroll Processing

You can have all this in a cost – efficient manner. Having professionals do your payroll processing does not only benefit you as a business owner but your employees as well. It saves them from any legal errors with tax laws in the region.go to for more payroll processing tips.

With professionals doing your payroll for you and you have enough time to put your attention to reaching your goals, your business can run smoothly towards success.

Need Accounting and Bookkeeping Services? Find out why it could save your firm

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Accounting and Bookkeeping

If you are a broker dealer then accounting and bookkeeping services are something you may want to consider for your next accounting audit. Many broker dealers are turning towards accounting and bookkeeping services in order to save time, money and a lot of precious energy. The fact is that if your firm were to acquire accounting and bookkeeping services it would not only cut your preparation time down considerably, but it would also cut down your stress level since you know that your accounting is being handled by a consummate professional. This is imperative if you want to remain competitive in this extremely cut throat business.visit for more helpful information.

In recent years the regulatory community has been doling out hefty fines to all broker dealers who do not follow their accounting compliance program to the letter and who do not have a solid accounting team in place. Accounting and bookkeeping services can help your firm fulfill their accounting requirements all while you remain focused on your clients instead of the regulatory community. By hiring outside accounting and bookkeeping services it allows the work to be done within a fraction of the time and with none of the mistakes.

Accounting and bookkeeping services are already being used by most of the larger broker dealer firms, who understand their importance to their overall accounting compliance. If you are not sure if accounting and bookkeeping services are for you then you need to think about the consequences for passing up on this invaluable opportunity. Since 9/11 the regulatory community has been cracking down on all firms who do not have a solid accounting compliance program in place, including a strong AML program. By having your accounting and bookkeeping services done for you by professionals it will allow your firm to avoid hefty fines and penalties which the regulatory community seems only too happy to dole out at this time.

But not all accounting and bookkeeping services were created equally and you need to find the right firm to do all of your accounting compliance work if you want to remain out of hot water with the regulatory community. One of the best ways to find the right accounting and bookkeeping services is to see who the large broker dealer firms are using for their accounting compliance needs. By using the same accounting and bookkeeping services as the big boys you are ensuring your firm is being represented by the best in the business. If you are in need of reputable accounting and bookkeeping services then this can be the most effective way to find the right firm for the job.

Accounting and Bookkeeping

If you are ready to hire reputable and established accounting and bookkeeping services, then just fill in the form to the right of this article or call the number at the top of the article. An accounting and bookkeeping services specialist will be more than happy to answer any questions that you may have concerning your accounting compliance status or steps that you will need to take in order to remain compliant with the regulatory community.