How do Small Business Accountants and Bookkeepers Work Together?

People who are unfamiliar with small business accountants and bookkeepers will consider both professions as the same. But when you learn the responsibilities of accountants and bookkeepers, then you’ll come to know the difference between both professions. Being a business owner, you must know these both professions are different. 

Perhaps the two professions also work together to enhance the method a business manages, monitors and records its cash flow. You can look for an accounting firm if you want accounting services for your business. If you are confused about whether you need a bookkeeper or an accountant, then you first understand your business needs. 

A bookkeeper is responsible to collect and organise the company’s financial documents. In short, a bookkeeper is responsible to gather, sort, and file data related to the company’s finances. On the other hand, accountants are responsible to analyse recorded data and interpret that data. When a bookkeeper and accountant work together, then they can make the whole process of managing finances easy. Therefore, if you are interested in hiring both bookkeeper and accountant for your business, then you can hire them. 

Small Business Accountants and Bookkeepers can Work Together

It is not necessary that you can only choose one of them. If you need both finance professionals for your business, then you can hire a bookkeeper as well as an accountant. 

A bookkeeper and an accountant work together to improve the performance of your business and also give your business various opportunities to grow. 

Most business owners ask a question whether they should hire an accountant or small business bookkeeping services or both. Well, accountants and bookkeepers focus on the same end goal of the business when it is a matter of the business’ finances. But accountants and bookkeepers are both focused on their responsibilities. 

The bookkeeper is responsible to make accurate and up to date data entries, and on the other hand, an accountant manages tax issues. The bookkeeper and an accountant can communicate daily to ensure everything is being stored accurately. 

Responsibilities of a Bookkeeper

Bookkeeping is the initial phase in the accounting process. A bookkeeper is responsible for maintaining the financial record of the company. Bookkeepers of Melbourne consider daily transactions in an accurate and easy to read way, and these records help accountants to do their jobs. Take a look at the following responsibilities of bookkeepers:

• Recording incomes from various services and expenses, such as office supplies, utilities, and rents.
• Managing payroll, even if it is not the primary responsibility of a bookkeeper.
• Creating invoices and making payments but depends on a particular arrangement with them.
• Comparison of balances in books and bank transactions to see whether they match or not. If they don’t match, then bookkeepers of Melbourne will create bank reconciliation statements to store these inconsistencies. 
• Tracking accounts payable and accounts receivable. Bookkeepers keep track of all invoices, due dates, and late payers. They will also ensure that you pay your accounts without any delays and don’t pay two times. 
• The general ledger is an accounting document that contains all your business’s financial transactions. 

Responsibilities of Accountants 

Accountants can now use recorded financial data to interpret and analyse to know the financial situation of the company. Accountants give a clearer picture of the business to the business owner so that he/she can make the right decision for the company. You can find tax accountants near your location by searching ‘tax accountants near me.’ Take a look at the following section to know the responsibilities of accountants:

• Preparation of financial statements to make you understand the financial status of your company, including a balance sheet, a record of income and expenses, and cash flow statements.
• Evaluating journals and ledger entries, e.g. accountants will recognise those expenses that have not been stored.
• Tax accountants can give you tax advice as well. So you can hire tax accountants for your business to reduce the stress of preparing and filing tax returns. You need to simply search for the term ‘tax accountant near me.’

Similarities between Accountants and Bookkeepers

Now, it’s time to discuss similarities between accountants and bookkeepers:

• Bookkeepers and accountants manage the financial data of the company.
• They have a common aim to improve the financial health of the company.
• Basic accounting knowledge is needed to enter either profession.

Conclusion 

Bookkeeping and accounting are two professions that come with various similarities and differences. We hope this post will help you understand the responsibilities of accountants and bookkeepers. Now, you know about bookkeepers and accountants, it’s time to decide whether your company needs a bookkeeper or an accountant. 

If you are looking for accounting services, then you can reach Reliable Melbourne Accountants, which is an accounting firm and serves you with professional and reliable accounting services.