Whether your business is large or small, managing your finances ultimately is your primary concern, regardless of the other factors youprioritize.Without a stable, reliable, managed and trackedfinancial structure, any business will crumble, and has done time and time again – even to huge conglomerates that otherwise saw themselves as “safe”.
While no reasonable person would suggest that you could forget the importance of your finances, it may be reasonable to suggest you may forget the importance of physically tracking and enteringwhat comes in and out of your business, as it takes a side to the necessary day-to-day operation of your business.
We can all do it. Too busy keeping the business afloat that we forget we need to keep things right in the eyes of the law. That’s why at some point it becomes of vital importance to employ someone or a team of people who can look after the best interests of the business finances.
But who exactly do you need? What’s the difference between a bookkeeper and an accountant, and what can they do for your business? Let’s find out.
A bookkeeper is in charge of keeping track of the day-to-day transactions that occur within your business. They work with you to keep accurate and up-to-date records of the finances keeping track of the flow of money within your company.
They should keep track of purchases made by your company, weekly expense reports, and all of the income that your company generates.
A bookkeeper will keep track of accounts payable and received, ensure vendors are charging the correct amount in their transactions, and ensure that your business conducts its finances in a timely manner.
If you wish to maintain your focus on the daily running of your business, and leave the tracking and accurate records to someone else, hire yourself a bookkeeper.
While an accountant can perform the same tasks as a bookkeeper, their primary function is to work on a much broader scope, to look at the big picture of your finances, and then filter down to find discrepancies, analyze your sales reports and effectively build a reputable report for your business in the past year and its projection going forward.
They can offer their expertise to give you near invaluable advice when making larger business decisions, as they analyze the trajectory of your company and assess what is needed to keep it afloat.
Arguably the most important role of an accountant, is that they will ensure when the time comes around to do your taxes, you are completely in compliance with the law in your country – and can also file those taxes for you on your behalf.
With an accountant, this otherwise headache becomes a complete stress-free problem
Regardless of who you feel you need in your business at the minute, both bookkeepers and accountants offer incredible services that keep your business in accordance with the law, and on right track to longevity through financial troubles.
You can find accountants and bookkeepers Melbourne based, or at www.bookkeeperco.com.au !