What is a bookkeeper? Do you need one?
As a small business owner, do you need a bookkeeper, an accountant, or both?
Bookkeepers can seem a little mysterious – what do they even do? What do accountants do? What’s the difference?
Well, they both deal with the organisation, the recording and the reporting of financial transactions of a business.
Simply put, a bookkeeper clears the way for the accountant to work with your business strategically. This means: keeping track of daily transactions, sending and managing invoices, handling the accounts payable ledger, keeping an eye on cash flow, and preparing the books for the accountant.
When you’re hiring, make sure you ask whether a bookkeeper has an area of specialisation. Some bookkeepers may be able to help train staff in using online accounting or POS systems or give you advice on business processes.
Should your bookkeeper work with your accountants?
It can be useful to have a relationship between your bookkeeper and accountants – trusted bookkeepers can recommend accountants that they believe will be able to best help you. This isn’t essential at all, but it can help you to know you’re working with a team that know what they’re doing!
Can your bookkeeper be your accountant?
Yes! We offer bookkeeping and accounting services for many of our clients – it can be much easier having everything done in-house. That way if there’s mystery transactions of invoices that don’t match up, there’s no need for back-and-forth between us, you and your bookkeeper. We have all the information we need on your business finances and can easily complete business activity statements and tax returns.
Interested in learning more about bookkeeping? Contact us.