Accountants and bookkeepers in Melbourne may seem to do the same jobs, but in reality there’s a few subtle differences it’s important to keep straight if you want to be sure you have the best financial professional for you. Today, we’re looking at what those differences really are.
Aren’t’ all financial professionals the same?
The short answer is no. Accounting may be the broad field under which most financial professionals fall, but there’s a lot of specialities in there and bookkeepers are just one of them.
So what are bookkeepers in the financial world?
Bookkeeping refers mostly to the record keeping aspect of accountancy, making sure that every transaction and financial activity is properly recorded and used. It’s an indispensable part of the bookkeeping process. In fact, it’s where accounting starts. The information collected is not only used for day to day facilitation of operations, but also to prepare important documents such as financial statements and tax returns. Bookkeepers are vital in the accounting chain.
So what is accounting, then? What professional do I need?
Bookkeepers are not the only professionals in the field, however. Accounting encompasses everything that works with financial data to determine its effects on economic activity. Accounting relates to the financial reporting of the information indicated by financial records. Persons such as managers, investors and more depend on this information to make future decisions for the entity.
Accountants are also responsible for ensuring that the bookkeeping process is controlled- that systems are in place to avoid fraud and simple mistakes as well as dishonest behavior. They will take the information unearthed by bookkeepers and use it to compile the vital reports that track how and in what area a business is doing well or poorly. They will help determine the profit of the company, and may even be responsible for auditing the veracity of the accounting cycle of companies with which they are not intimately involved. They also make decisions on how revenue is measured and other important facts. The ultimate determination of profit and loss lies with them. You can get more info here.
Is my bookkeeper an accountant?
While they’re are two separate fields, many practicing accountants do, in fact, offer bookkeeping services as part of their portfolio, and chances are your ‘bookkeeper’ is also a qualified accountant. This is often a good decision as they are empowered to take the simple process of assembling information and keeping accurate records and guide their clients further in the business decision making process. Most people in practice offering bookkeeping services will in fact be accountants, although it is vital to remember that this is not always the case and be sure that you pick the best financial professional for your needs and purposes.
Bookkeepers and accountants work together symbiotically to ensure that financial records are clearly kept and that the vital information required by businesses is extracted and assembled to help business owners and manages make the right decision for their companies.
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