Small Business Bookkeeping or Accounting: What is More Important?

 If you are confused between accounting and bookkeeping for small businesses, then you must know that both are important for a business, no matter whether you have a small or large business. As your small business starts growing into a large business, it will not make any sense for you to manage your business books on your own. People who don’t know about the responsibilities of bookkeepers and accountants use bookkeeping and accounting interchangeably.

The daily schedule, day-to-day operations, and qualifications of these two roles are different. Now, the question arises, how do you know whether you need a bookkeeper or an accountant, or both? From this blog, you will get your answer. Well, if you are looking for bookkeepers of Melbourne, then you have arrived on the right page.

What is Included in Small Business Bookkeeping Services?

Essentially, a bookkeeper is responsible for maintaining records of money that flows in and out of the business. Bookkeepers maintain a record of daily transactions in easy to read way, and their records will help accountants to perform their tasks.

Bookkeepers are responsible for performing various bookkeeping tasks, such as:

·     Recording transactions
A bookkeeper can manage the recording of daily bank transactions, enter them into the system daily, allocate them to accurate accounts in your accounting software (if you already have accounting software), and generate weekly or monthly reports that will provide you information, so you know the performance of your business.

·       Accounts payable and receivable
Many of you may manage accounts payable and receivable, but accounts payable and receivable can be managed by a bookkeeper. Bookkeepers will check timesheets and prepare reports to provide to accountants. Well, you can also search for bookkeepers in Melbourne to hire professional bookkeepers from Melbourne.

·       Payroll
If you hire staff, then the payroll process can become complex. Keeping records of employees’ detail can be a large task. Hence, a bookkeeper can manage payroll for you, and you can work on other business tasks.

·       Bank Reconciliation
Either bookkeeper or accountant will reconcile bank statements. Generally, reconciling bank statements means comparing bank statements with bookkeeping records to find if there are any discrepancies. Well, you don’t need to worry about reconciling bank statements because either your bookkeeper or an accountant will do it for you.

·       Tracking Cash Flow
Bookkeepers will keep a close eye on cash flow so you don’t run out of money. They will track the money that flows in and out of the company. They can also suggest you that if your company need more money. Petty cash will ensure that your business has money to use in an emergency.

·       Preparing Business Books for the Accountant
It is the responsibility of a bookkeeper to ensure that accounts are updated and valid when a tax return accountant needs them for preparing and filing tax returns. It will allow accountants to use their knowledge and skills to make business recommendations and complete company tax returns. On the other hand, if you need professional accountants near your location, then you can search for ‘accountants near me.’

·       Financial Reporting
A bookkeeper will also provide you with daily financial reports, such as balance sheet, profit and loss, and cash flow forecast that will help you get all the required information that can improve the financial performance of your business.

Bookkeepers are responsible for keeping an eye on top of taxes, keeping your business stay organised, and managing your business cash flow. A bookkeeper will ensure that you pay your credit card bills without any delay, and most of the time, bookkeepers will pay bills on your behalf and record expenses accurately.

Generally, you will work with the bookkeeper daily. Bookkeepers maintain a general ledger and ensure that all transactions are recorded properly. Mostly, bookkeepers use accounting software that will allow them and you to add invoices and expenses on their desktop, or server to organise business books properly.

Responsibilities of Accountants
Not only will accountants use the records that a bookkeeper recorded, but they will also use those reports to perform further accounting tasks. If you hire accounting services, then you don’t need to worry about your business’s accounting tasks. The typical roles of accountants are:

·        Keeping an eye on the growth of the business

·        Adhering to new tax laws

·        Resolving accounting issues

·        Checking revenues and recommending budgets

·        Preparing financial statements

·        Preparing taxes

·        Setting accounting processes

Final Thoughts

Accountants and bookkeepers have different roles as mentioned above. Now, you need to know what your business requirements are. Hiring a bookkeeper and accountant for your business will serve a plethora of benefits to your business. A complicated structure of tax will call both accountants and bookkeepers. Hence, it will be beneficial for your company to take help from bookkeepers and accountants, but make sure they are reliable and professional so that they can perform their duties well. Thus, you can hire an accountant and bookkeeper for your organisation. For small business bookkeeping services, you can reach Reliable Bookkeeping Services provider.