Are Bookkeeping and Accounting the Same?
As defined by the oxford dictionary:
“Bookkeeping is the activity or occupation of keeping records of the financial affairs of a business.”
“Accounting is the process or work of keeping financial accounts. “
For non-accounting people the definition maybe confusing.
NURSE (Bookkeeper) – DOCTOR (Accountant)
Bookkeepers will usually do the following:
- Set up your accounting software.
- Link bank accounts to accounting software.
- Reconcile your bank accounts, accounts receivable & accounts payable.
- Prepare the trial balance.
- Prepare and lodge Business Activity Statement (Must be BAS agent)
- Prepare payroll.
- And keeping records of the financial affairs on a daily or weekly basis.
- Plus, more
Accountants will usually do the following:
- Use the trial balance to prepare financial records, like Profit & Loss & Balance sheet
- Give tax return advice.
- Prepare and lodge tax returns (Must be a tax agent)
- Plus, more
It’s also noted that some accountants are doing bookkeeping too.
In general terms, accountants charge more than bookkeepers, and it can be 2 to 3 times.
Download our report: “Are you paying too much for your BOOKKEEPING and not getting a return on investment.”
Disclaimer: Ogap Pty Ltd ABN 35 162 809 118 trading as Jim’s Bookkeeping & Tax is a registered Tax agent, 25413903, the information provided in this article is of general nature only, before you act on this, we recommend you consult a registered BAS agent.