Questions and Answers
What is the difference between bookkeeping and accounting?
There are important differences between bookkeeping and accounting and they are both key functions which every business owner needs to understand.
What is bookkeeping?
Bookkeeping is recording the information and transactions of your business so that you can monitor your incomings and outgoings.
It needs to be done on a regular basis, so you have a clear picture of the financial position of the business and to allow you to make decisions and make the necessary filings for your taxes.
Bookkeepers are responsible for entering the data into a business’ financial software, and reconciling accounts.
What is accounting?
Accounting is much broader in scope and incorporates analysis of the data recorded by a bookkeeper.
Your accountant should be able to tell you how much profit (or loss) you are making, what your cash flow position is and the current value of your company’s assets and liabilities. Analysis is also a key part of the job so they should be able to delve deeper into the figures to give you a better understanding of trends and variances.
The accountant will take the data produced by a bookkeeper, which in most cases will be through your accounting software. They will then present the information in the appropriate way to you as a set of accounts.
An accountant will help you to prepare and lodge your taxes correctly and on time, and will ensure that all of the appropriate obligations are followed. They will help you to understand potential tax deductions, calculate capital gains and determine any potential write-offs. They will also help with The Goods and Service Tax (GST), Business Activity Statment (BAS) as well as payroll and super.
We make bookkeeping and accountancy simple for you
At TaxAssist Accountants, we offer a full range of accounting and bookkeeping services.
If you are interested in learning more, please give us a call on 1300 513332 or use our simple online enquiry form.
Date published 23 Jun 2021 | Last updated 23 Jun 2021
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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