What Is The Difference Between Bookkeeping & Accounting?

So, what is the difference between bookkeeping and accounting? Many business owners are unaware there is a difference. As a result, they often do not seek out the help of a professional when they should. Read on to learn the difference between them and to discover which one your business needs.

What Does A Bookkeeper Do?

A bookkeeper is responsible for recording all of a business’s financial transactions. This includes income from sales, payments made to suppliers and any expenses incurred by the business. In addition to keeping track of these transactions, a bookkeeper also reconciles bank statements and prepares invoices for customers.

What Does An Accountant Do?

An accountant provides many of the same services as a bookkeeper. However, they also offer more comprehensive services, such as:

Preparing Tax Returns

Tax season can be an overwhelming period for individuals, small business owners and corporations alike. An experienced accountant provides a valuable service when it comes to preparing tax returns; they anticipate liabilities, take advantage of tax-saving opportunities and navigate the complexities of the taxation laws that are constantly changing.

A tax professional is knowledgeable in all aspects of taxation, enabling them to effectively transfer those savings onto their clients. When enlisting the help of an accountant to prepare a return, a prudent individual or entity can rest assured that the job will be done accurately and efficiently.

Analysing Financial Data

Accountants can analyse your financial data to identify areas where money may be best spent, identify opportunities for savings and profits and generally assist in making sound financial decisions.

Providing Advice On Financial Matters

Additionally, accountants can provide an independent opinion on the current state of a business’s financial health, helping it stay competitive by offering timely advice based on reliable data. Therefore, entrusting an experienced accountant with your company’s financial records is a smart move that will help you to stay informed and make decisions in the best interest of your business.

Budget

In addition to these services, an accountant can also help you develop a budget for your business and provide guidance on how to best manage your finances.

Do I Need A Bookkeeper Or An Accountant?

The answer to this question depends on the needs of your business. If you simply need someone to keep track of your financial transactions and reconcile your bank statements, then a bookkeeper will suffice. However, other financial aspects of business are more complex and require an accountant.

If in doubt about whether a bookkeeper or an accountant would suit your needs best, look for an accounting service that also offers bookkeeping. This will ensure a seamless integration between your financial records and the more complicated elements of business such as budget development. At Whitson Dawson, we offer a wide variety of accounting and bookkeeping services including taxation, business advice, auditing and more. Contact us via our website for more information or call us today on (07) 4957 2985 to discuss your needs and book an appointment with one of our professionals.