I have talked to numerous business owners and some of the ones that have just started out don’t know if they should get an accountant, bookkeeper, or both. Since I have heard this so much, I thought I would do a blog on this with the hopes of helping people to be successful with their dream of building a business.
Bookkeepers focus on the organization, categorizing and recording financial transactions for bank and credit card accounts, and bank reconciliations. There are numerous pay accounts such as PayPal, Sezzle, Shopify, Etsy, Square, and Stripe. Many owners aren’t tracking and reconciling these types of accounts. They wait until they hit their bank account and hope the information is correct. Bookkeepers also train customers on how to use accounting software, implementing document management, implementing point of sale system, as well as other software to automate systems and processes to create a more efficient running business. Bookkeepers take care of your accounts receivables to make sure you are being paid on time, accounts payable to make sure you are paying your bills on time, monitoring your cash flow, and preparing your books for an accountant if you are big enough to have one.
Accountants main focus is on preparation and lodgment of statutory returns, advising on legal entity structures, and giving general business and financial advice. Some accountants are Certified Public Accountants but some have not taken the certification test due to the have to complete certain requirements.
As you grow, you will want to employ a bookkeeper and accountant to help you grow and scale your business. These are a couple of things that they work on together: Company formation, accounting systems, bookkeeping work, account reconciliation, reporting, strategy, and legal compliance. One is not better than the other but depending on the size of your business will determine if you use one or both.
More to come this Friday. See you then!!