July, 2010

Ever wondered what the difference between a Bookkeeper and Accountant is, but been too embarrassed to ask?

July 19th, 2010 in Articles

Don’t worry – it’s a surprisingly common question.  Here we’ll briefly explain the main differences in plain English.

Bookkeeping is a very task-oriented function, in which the day-to-day financial transactions of your business are routinely and systematically recorded.  These regular transactions include (but are not limited to) entering invoices to be paid, producing and entering invoices to send to your clients, entering bank transactions and performing bank and other reconciliations.

Accountants deal with the bigger picture.  They can help you choose the best accounting system to use, design the overall structure for reporting your financial information and perform the decision making around the financial entries posted by the bookkeeper.  Accountants are trained to analyse and interpret financial reports and are in a good position to forewarn you of any potential issues or upcoming cashflow problems.  They can also recognise process deficiencies and implement controls within your accounts function.

Working together, a Bookkeeper and Accountant make a very powerful team.  Your financial data is kept up-to-date and accurate, plus you have the benefit of understanding exactly what your numbers mean and where your business is heading financially. We strongly believe that timely, meaningful financial reporting and analysis is imperative in the current climate and for the future success of your business.  We have a funny feeling you may agree.

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