Bookkeeping and Accounting are the terms used often, however, there stands a significant difference between the two. It is important to acknowledge that first. So, let’s look at the difference between Bookkeeping and Accounting. It’s very much a reality that bookkeeping is related to accounting. Many assume that there happens to be an overlap between the two which can be bridged by hiring a single entity to handle both the tasks. It is important that one knows the difference between the two.
What is the difference between Accounting & Bookkeeping?
Bookkeeping is all about maintaining a record and managing all the important financial data. It is majorly about keeping a transaction record that involves systematic and logical organization of all the daily financial transactions that take place in a company.
In Contrast to Bookkeeping, accounting is all about analyzing. It means the bookkeeper maintains a record of the accounts of any business and the accountant is the one to help you decide which way to steer the vehicle of your business.
Having understood the major difference between the two, let’s move on.
Who is a Bookkeeper? What are his responsibilities?
The role and task of a bookkeeper for any company is really extensive. Whether you consider micro business or a million dollars turnover business. Here are some of the essentials of a bookkeeper:
- Keeps records of all the financial transactions that take place in a business.
- Responsible for cash flow reporting, payroll management, invoice processing, IAS & BAS lodgement, Credit Card and Bank reconciliation, Inventory Management, as well as Reporting.
Bookkeeping services in Melbourne ensure that all of these bookkeeping tasks are handled well by the bookkeeping service provider.
How Bookkeeping service can help Small Business?
There are various numbers that are vital elements for the success of any business:
- Sales figures
- Cash Flow
These important business metrics need a method to track them, this is where bookkeeping comes into play. Here’s how bookkeeping helps:
- Bookkeeping helps keep a track on the transfers, expenses, and all each movement of money that happens in any business.
- It acts as a light of guidance to support the business decision of people.
- It can also ensure that the business is well in compliance with all the regulations and obligations laid out by Government.
When you have a reliable bookkeeper working along-side your business, it helps you save the company’s time and money. You will be saved from the trouble of reporting standard, correcting the mistakes that come with experience. Other responsibilities handled by bookkeeping services in Melbourne are:
- Cash flow management
- Observing the accounting metrics
- Filing of taxes
- Preparing the payroll
- Preparation of financial statements
Without a fair bookkeeper it would be highly likely that your business might fall in the trap of wrong decisions, mistakes, and in some case data discrepancy. There is now the provision of Online bookkeeping service, which essentially means you reap all the benefits of a bookkeeping service without having to personally meet and greet the bookkeeper. Everything is virtual.
If you are a business struggling with financial data, and don’t know how to manage and keep a track on all the expenditures you must consult an online bookkeeping service provider in Melbourne, better known as Bookkeeping outsource service provider.