So you want to hire a bookkeeper? Because you are reading this article, then chances are that you do. However, you only have the vaguest idea of what a bookkeeper does, and so you want to know exactly this person’s job is. And we’re glad that you’re doing that because it helps you find one who fits the job perfectly, and you won’t go into the trap of expecting something that’s out of your prospect’s job description.
And that is why we have written this article for you. In the following paragraphs, we’re going to talk more about what a bookkeeper does, for your reference. So if you’re ready, then read on.
Actually, the job of the bookkeeper is pretty straightforward. The most basic requirement for the bookkeeper is to keep a daily journal of all the financial transactions done by a business. So for example a client paid you X amount of dollars yesterday, it is the bookkeeper’s job to put that on record, usually on a ledger. Meanwhile, if you purchase a new office chair, the bookkeeper will record that too.
The job of the bookkeeper isn’t limited to that, of course. Some Parramatta bookkeepers can provide other services, including invoicing, inventory management, and keeping track of accounts payable and receivable, just to name a few.
While it seems that you could simply hire anybody to do your bookkeeping requirements, it is always recommended that you get somebody who at least has a diploma in accounting. This leads us to another sub-topic: what’s the difference between an accountant and a bookkeeper?
The Difference Between a Bookkeeper and an Accountant
The main and the most obvious difference between the two is that an accountant is often a Certified Public Accountant (CPA)–somebody who is certified by a particular regulating body–or somebody with a master’s degree in accounting, while a bookkeeper doesn’t necessarily need to have these qualifications.
Another thing is what a bookkeeper and an accountant does. A bookkeeper generally simply logs in the money that comes in and out of the business. Meanwhile, it is often the accountant’s job to adjust the finances of the business, and prepare its financial statement. An accountant also presents financial reports to the business owner or the decision makers so that they can assess how to handle the company’s finances even better.
Of course the accountant could also do the bookkeeper’s job. However, in the case of big companies, they often hire bookkeepers to record the daily transactions conducted by the company, while the accountant supervises what they do.
There you have it, some of the most important things you need to know about what a bookkeeper does. So if you need extra help in recording your business’ financial transactions, then chances are that you need Bookkeeping services Parramatta. However, if you need an expert advice on how to improve your business finances, then you likely need an accountant. Either way, you will at least need to have a bookkeeper to make your work a lot easier for you.