Bookkeeper vs Accountant – What’s the difference?
As a business owner, one of your primary concerns is profit; ensuring that you have the required cash flow to grow your business and achieve financial stability. On the other hand, making sure that all of your transactions are accounted for and recorded correctly for your end of year reports is an additional burden you may not enjoy spending your time on. After all, this is a responsibility that every business owner takes on once you open for business – the accuracy and record keeping of your financials as required by government agencies.
Outsourcing this area of your business will not only free up your valuable time to focus on the more exciting areas but it will also ensure that your financial records are maintained and lodged.
You may have heard the term Bookkeeper, but what exactly does a bookkeeper do?
This person or organisation records your income and expenses. They will organise your financial files to make sure that the correct systems and processes are in place for accurate reporting.
Your bookkeeper can work either alongside your accountant or as a separate entity and leave the filing of such records to you.
Check the credentials of any bookkeepers you are looking to employ to make sure that they are certified, professional and have your business’s best interests at heart.
If I have a Bookkeeper, why do I need an Accountant?
One of your businesses best assets is its financial security and stability and therefore you cannot afford to make assumptions about money or the progress of your business financially.
An accountant or accountancy firm is responsible for ensuring that your records are correct and filed with the appropriate organisations such as the Inland Revenue Department.
The role of the accountant extends past the role of a bookkeeper in that they will use the financial data that either you or your bookkeeper has provided and help you to utilise your strengths and promote financial growth. They will have inside knowledge on how to invest your profit to make exponential financial gain. A qualified accountant will also be able to recognise when and where you are losing money and prevent you from a financial drought.
Regardless of whether you choose one or both, you can rest assured that your finances are in good hands. Make your money work for you with the assistance of a bookkeeper and/or accountant.
Using the latest technology available, you can stay up to date by having access 24/7 to your records and gain a snapshot into the financial growth and areas for improvement to grow your business.
For further information on how Target Accounting can help you get your finances in order and maximise your financial growth, contact us here