Operating a business is not just about getting clients to buy from you or ensuring that you are earning much more than the capital you have invested. The financial aspect of business is a lot more complicated than you think and it can get pretty tricky too. This is the reason why billions of business owners are seeking professional bookkeeping services in Sydney to take care of their finances because of their knowledge and expertise in this area.
You see, a lot of people cannot tell the difference between a bookkeeper and an accountant. Yes, these two are experts on finances but they play very different roles. Accountants and bookkeepers are not the same. Let’s see how an accountant differs from a bookkeeper.
What is the difference between an accountant and a bookkeeper?
An accountant’s job is to prepare and lodge statutory returns; offer financial advice and give advise on legal entity structures. Accountants are generally part of a statutory association and they are qualified and registered and carry titles.
Bookkeepers, on the other hand, are tasked to manage various responsibilities in small businesses. However, their primary focus is systematising and recording financial transactions. It is also their job to train clients on how to use different accounting software, implement inventory control and document management systems. It is also expected of them to implement point of sale systems that will take everyday transactions in retail businesses. Furthermore, they are responsible for developing, implementing, maintaining and reviewing internal business processes.
Let’s talk more in-depth about the services bookkeepers offer so you will understand why your business needs them.
Daily financial transactions are tracked.
As a business owner, you know very well that you have a lot on your plate. You also know that it can be hard to keep track of every single transaction that takes place on a day-to-day basis. Your bookkeeper can handle all this for you. The accounting software your business uses has to have a daily automatic bank feeds because it’s much easier to keep track on cashflow and it will save you a great deal of time trying to enter data into the computer.
Invoices and accounts receivable ledger
It is the bookkeepers’ job to prepare invoices and sending them out to clients. They are also in charge of handling the accounts receivable ledger and following up on clients that have late payments.
Monitoring cashflow is one of the most crucial tasks of a bookkeeper because they need to make sure that your business will not run out of money. Handling cashflow involves regularly checking the balance of revenues to expenses.
How can a bookkeeper help your business?
There are a lot of ways bookkeeping service can help your business. If you forego hiring bookkeeping services, your business may suffer in the long term. Don’t let this happen. It is best if you invest in a credible and trustworthy bookkeeper to handle and monitor your business’ financial records. Here are some ways a professional bookkeeper can help your business.
Firstly, it gives you ample time to concentrate on marketing, advertising and sales. You see, bookkeeping is a very meticulous job as it involves tracing minute details and recording them in account software. This can be very time consuming and can cause you stress. This will take a toll on your business and your marketing strategies since you will be spending time monitoring figures when you should be concentrating more on making sales and attracting clients.
Secondly, it will reduce your accounting costs. Yes, hiring a bookkeeper will cost you money but what will cost you more is if you don’t have a bookkeeper for your business. Instead of hiring an accountant to manage all your day-to-day transactions, you will save more money if you hire a bookkeeper instead.
And thirdly, a bookkeeper will serve as your extra pair of eyes when monitoring your cash flow. In order to not run out of money, our best advice is to actively check your cash flow but since numbers can be quite overwhelming and time consuming and we know that business owners are busy people, having a bookkeeper look into it will give you peace of mind.
There is no arguing that bookkeepers play a vital role in any business. You can do it yourself or you can hire someone else to do it on your behalf. Regardless of the case, if there is no proper bookkeeping, your accounts will not be as accurate and this could negatively affect the finances of your business.