Every business, no matter how new or successful, or how big or small, requires some kind of bookkeeping system, whether it’s through a desktop software program or an established bookkeeping firm. But, is there a difference between a bookkeeper and an accountant? Do you need a bookkeeper and an accountant? The answer to both questions is yes. Each position holds a distinctive set of responsibilities, and a successful business should have both a bookkeeper and an accountant in the Sydney CBD.
Bookkeeper
In a nutshell, a bookkeeper is responsible for the day-to-day financial activity of the company. This could include account payables and account receivables, as well as employee payroll. The bookkeeper is a sort of subset to the accountant. Sydney CBD business owners will all have both bookkeepers and accountants on hire, sometimes working together, but more often, the bookkeeper will be on staff while the accountant will work for an accounting firm.
Accountant
Still working with the finances of a business, but in a broader and more elevated way than a bookkeeper, an accountant in the Sydney CBD will generally handle the task of designing the bookkeeping system, or, at the very least, analyse it to ensure that the system is working efficiently and securely. He will, on an ongoing basis, continue to analyse and verify the recorded information that was input by the bookkeeper as well.
Another function performed by an accountant is to determine the financial impact of the businesses choices, such as large purchases, investments, and the hiring of new employees. Accountants generate reports based on this information, as well as the information gleaned from their reviews of the bookkeeper’s work, and present the reports to the business owners or business investors, as needed.
Simply put, the bookkeeper’s job is to follow the lead of the accountant and owners. If you are a growing business, or a business owner who wants your business to grow, you should have both a bookkeeper and an accountant, Sydney CBD.