Accounting and bookkeeping are both crucial for a business when it comes to managing your company’s finances. Most businesses use both to keep their business running successfully and to avoid running out of cash. Choosing accounting and bookkeeper services for your business will ensure that your accounts and records are up-to-date. In simple words, bookkeepers are responsible for recording business data and accountants are responsible for analysing the recorded data.
What are the responsibilities of a bookkeeper?
A bookkeeper aims to record and organise the transactions of a business. This information is then used to prepare tax documents. Here is the breakdown of the duties of a bookkeeper:
- Managing accounting systems
- Processing payments, receipts, invoices and other financial transactions
- Payroll and employee records management
- Preparation of financial statements
- Reconciliation of bank accounts and preparation of reconciliation reports
- Debt repayments management
- Calculating GST
- Preparing and filing your BAS statements
- Ensures business books are up-to-date and accurate
Bookkeepers are likely to work for small to medium-sized businesses. They are responsible for handling the day-to-day operations of a business. Having a bookkeeper means someone is taking care of your BAS lodgments and reporting.
What are the duties of accountants?
While bookkeepers are responsible for recording the transactions of a company, the accountants ensure the figures are accurate, prepare and analyse reports, and ensure that all ATO compliance needs are being satisfied. There is some overlap between bookkeeping and accounting services, but where bookkeepers manage day-to-day business operations, accountants analyse everything.
Accounting involves monitoring and managing financial transactions. Accountants offer businesses valuable insights that help them make informed business decisions. An accountant typically handles a range of responsibilities, including:
- Recording and managing financial entries
- Assessing the company’s operating expenses
- Generating financial reports
- Filing tax returns, such as income taxes
- Advising business owners on how financial decisions impact the organisation
By analysing the financial data provided by bookkeepers, accountants are essential in helping businesses evaluate profitability and manage cash flow. In addition, they offer financial projections and tax strategy guidance and ensure accurate tax filings. Ultimately, the goal of accounting is to provide a clear view of a company’s financial performance and support better financial planning.
Benefits of getting bookkeeping and accounting services from the same firm
Bookkeepers and accountants both play vital roles in your business. Keeping both your bookkeeper and accountant in one place is a smart business decision. Bookkeepers and accountants have their own expertise, speciality, and qualifications. Here are some benefits of choosing accounting and bookkeeping solutions from the same firm:
Balancing the workload
Having accounting and small business bookkeeping services from the same company ensures smooth collaboration, with clear boundaries to avoid overlap and duplication. This reduces hassle and saves time, as opposed to coordinating between separate professionals.
Simplified processes
Having both roles within the same company likely means they are using the same software. This eliminates the need for the accountant to convert financial data from the bookkeeper into a different program. When they save time, you save money.
Better support
Another benefit of having an accountant and bookkeeper from the same organisation is that it offers better support to a business owner. For instance, when a business owner pays attention to the details regarding business finances and the accountant is unavailable, the bookkeeper can go through their records, or vice versa. This means, that if one is unavailable, then another person can take over the responsibilities.
Error reduction
By having accounting and bookkeeping services from the same firm, you can get added features and protection for your business books, accounts, and tax matters. Therefore, it would be beneficial to get bookkeeping and accounting solutions from the same firm to reduce the chance of errors in your business books and accounting practices.
Conclusion
The blog outlines the significance of choosing the same firm for accounting and bookkeeping solutions. If you are looking for accounting and reliable bookkeeping services for your business, you can get in touch with us.