The terms Bookkeeping and Accounting are generally used interchangeably in the business world. Actually, their actual definitions vary considerably in terms of job function and work skill. As a small business owner, it is very important to know the difference between the two functions to decide which will be most advantageous for your small business. Keep in mind that all accountants can perform bookkeeping roles, but not all bookkeepers will have the knowledge to manage the whole accounting process.
Role of Your Bookkeeper
Your bookkeeper is best used to enter financial data, prepare cash flow forecasts and provide you with reports so that you can abstract the information you have to make significant business decisions. Your bookkeeper can help you prepare your BAS statement as well and carry out end-of-year processes to allow your accounts to be transferred to the next fiscal year. In addition, some of the best bookkeepers can help you with more technical problems, but you’ll want to make sure they know what they are doing before they start playing with your process.
Role of Your Accountant
Your Accountant, to whom you would pay more than double the amount more per hour, is best used as a high-level advisor. Use the first to help you define the right structural configuration for your business and use them to advise the best format for your chart of accounts as well. On the other hand, you can then pass this data to your accountant to maintain it continuously. Check here.
Regular Contact with Your Accountant
I would recommend keeping a regular contact with your accountant: you can usually do so by sending a copy of your reports so they can see where you are going from month to month. Just depending on the size of your business, you could set up regular meetings, either monthly or quarterly, to talk about these reports and your economic plans for the next month. In addition, use your accountant to verify BAS statements that your accountant has prepared, and if you use them to file those returns, you can usually get extensions on the payment dates. Of course, some of the bookkeepers who have a business of their own also have this talent.
Which Is Right for Your Small Business?
Hiring Bookkeeping and Accounting staff for a small business just depend on some factors. If your business processes transactions without complications, a bookkeeper can handle the maintenance of financial records in combination with an online accounting program. This is an excellent option for a small business looking to save money and time in the initial start-up phase; however, it can be expensive if you hire more help during the tax season.
When accounting processes enhance in complexity as a business grows, a certified accountant may be required. Especially this is true in the case of more regulated businesses, such as financial institutions or health care. The benefits of hiring an accountant include full-time financial advice and tax preparation at the end of the year but often have a higher price. For more details, visit: http://bookkeeperco.com.au/bookkeeper/