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 bookkeeperco.com.au, 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.