Saturday, 28 Apr 2018
When it comes to establishing your business, maintaining ongoing accounts and monitoring cash flow, the one debate that often comes up in the business world is Accountants vs. Bookkeeper. In a tee off boxing match, both are beneficial, both have great pros and cons, and novices won’t know which team to pick. At AGI Bookkeeping we believe the in the importance of having the correct measures in place to having business success. Accountants and Bookkeepers are essential in protecting finances within your company, however to make the correct choice you need to view the larger scope between the two positions. This article will ease you into the world of business finance and help you in choosing what is right for your business.
The daily role of a bookkeeper in Melbourne includes meticulously recording financial transactions daily. This includes purchases, sales and payments, and receipts usually on a general ledger. The popular software within small business is Xero, MYOB and Quick Books; these keep track of entries, debits, and credits to a trial balance at end of month. Staying ahead of the game is important for your bookkeeper and you as an owner; falling behind could leave you in hot water later on in the year and a nightmare come tax time. When it comes time to choose your bookkeeper, remember to ask yourself “Can I trust this person with my money?” What are their ethical values, are they efficient, do they have adequate knowledge? Have a flick through our post How To Choose Your Book Keeper – Improve Profit & Save Time. We give you four key points to consider and some info to help you in the process.
While bookkeepers are great at managing the books daily, on the contrast accountants focus on the wide, sunny future. They verify the data received, audit, analyze, and prepare financial reports for tax returns, balance sheets and taking care of income statements. These reports are important as an accountant can forecast the company’s predicted growth, business and consumer trends, and when cash flow needs to be reevaluated. Having an accountant gives you further insight as to what your figures are showing, and extra peace of mind that your business finances are in safe hands. An accountant will also be able to filter through and correct any errors that may arise within the General Ledgers and any other related expenses. This saves you big time at the end of the financial year.
The debate when it comes to Bookkeepers vs. Accountants shouldn’t be ill thought, and more often small business are utilizing both assets. Accountants and Bookkeepers depend on each other, but the real question is what is beneficial to have in both? At AGI Bookkeeping we are a top tier bookkeeping firm with a 3 step solution. First we meet with you and cater to your requirements; no matter how busy life can get, you’ll have peace of mind knowing we are here for you. We will inspect your bookkeeping and other relevant systems including admin and payroll. Once our audits are complete we will walk you through the best possible solution for your business. Our professional accountants are happier to help you rather gain a commission.
While bookkeeping is a daily ongoing role, accountants and firms are there for the bigger things that are crucial to the ongoing success of your business. Starting a new business is a stressful and exciting time, and the journey you will go on will teach you many wonderful things. However you will need to know money, and you will need to convince potential clients, shareholders, and investors that your idea will make money. Accountants will help you with this. They will test the waters in ways industry professionals have found successful, they will help work on your business pitch and find the big lenders for you to pitch it too. Accountants have a great role in the launch of a startup business and will give you the tools you need to continue your success and business strategy.
When the inevitable comes around and bumps in the road come up, accountants will be there to help you mediate issues. Managing debt and unpaid invoices can be time consuming, taking away the opportunity for you to focus on other areas of your business. When unpaid invoices are an inconvenience in your busy schedule you can rely on the professionals to follow up for you. Accountants have the resources and exposure to chase the debtors, refer to debt collection agencies, and remedy with the debtors. They will soothe your headache and let you get back to the fun parts of business. Accountants are key in helping your business run smoothly, from startups to budgeting, staffing and loan applications. You’ll have someone who is dedicated to YOU and YOUR business, and may just blossom to a great working relationship.
AGI Bookkeeping are part of a great network of Bookkeepers in Melbourne, with professional network spanning to a multitude of unique business. We have great recommendations on bookkeeping software if you do choose to self-start. MYOB, Xero, and Quickbooks are the current industry leaders, yet which software suits you is down to what business you’re running and the abilities of your bookkeeper. Canstar Blue reports Xero steals the top sport for accounting software three years in a row, following MYOB scoring 5 stars for reporting and Quickbooks also 5 stars for other functions. When choosing which software works well for you keep in mind the following: ease of use, value for money, reporting quality, customer service, ease of integration, and bonus functions (POS, Payroll, Billing etc.)
The question of Accountant vs. Bookkeeper is a large debate in the small business world, having both on board will enable flourishing success and further peace of mind knowing your finances are being taken care of. When contemplating between which paths to take remember to closely evaluate the risks and benefits of both. Having an accountant provides many ongoing resources that will be valuable in the bigger picture, having a bookkeeper is an opportunity to have the daily financials professionally organized correctly avoiding any errors you may miss, utilizing both leaves little room for failure At the end of the day, keep your business’ success imperative and focus on what is best in order for your business to expand seamlessly.
