The Bookkeeper Hub

WITH VICTORIA BERRY

What is bookkeeping? Bookkeeping is the process of tracking and reporting financial transactions. The process involves recording the financial side of every transaction that occurs in an organisation or company, including deposits, expenditures, investments and loans. In this context, bookkeepers maintain records to track a business's finances and prepare reports such as balance sheets and income statements, which are required by authorities like boards or shareholders or other stakeholders.

What is accounting? Accounting is the advanced process of recording and summarising the financial transactions of a business. Accounting also includes understanding and communicating this information in a meaningful, clear way. Accounting is one of those professions that doesn’t get as much attention as it deserves. It’s more than just preparing tax returns, it’s a field that provides long-term value to an organisation by providing key financial information to decision makers.

BOOKKEEPERS VS ACCOUNTANTS They are responsible for the reporting and tax filings, gathering data for financial statements, and other tasks related to accounting and making business decisions. On the other hand, bookkeepers are professionals who handle day-to-day financial transactions in a business. They also provide their clients advice, generally making sure the company is operating smoothly by tracking payments and making sure there's enough cash on hand at all times. When to hire a bookkeeper Bookkeeping is typically a full-time commitment while accounting is a part-time commitment.

Whilst most people can generally prepare basic bookkeeping for a business, knowing how to use this information to help you make decisions is generally the realm of a professional. Using a bookkeeper can generally cut down up to 80% of the time you spend on finance administration for your business. Why you need a bookkeeper for your business While you might be a whiz at keeping up with your personal finances, the responsibility for managing the finances of a small business takes on a whole new challenge. From taxes to invoices and payments, there are plenty of opportunities for things to go awry. And without proper bookkeeping, it’s difficult to know where you stand financially. A bookkeeper is trained and experienced in dealing with all aspects of small business accounting and can provide insight into what is going on with your books. They are also trained in working with Accounting Software such as Xero, which will save you time because they already know how to properly input transactions into the system so that it keeps track of everything from bank balances to outstanding bills. They also know heaps of shortcuts to streamline this process. Which should you hire, a bookkeeper or an accountant?

Both accountants and bookkeepers have their own set of skills, and it is important to know them before you hire one. Depending on your business size and needs, both are likely to be essential. ca