Accountant vs. Bookkeeper: What Do they do for a Business?

Small organizations live and die by their income and accountability. Exact recordings of transactions, combined with appropriate evaluation and handling, give small entrepreneurs a firm base on which to settle on choices and create plans for development.

Recording and understanding the business, costs and other essential business information should be sufficiently simple for small entrepreneurs. But understanding the accounting needs of a business is not generally so straightforward. What kind of Activity is considered bookkeeping, and when do you require accountant? Is there any difference between the two? –
There is a basic difference between both: Bookkeepers record an organization's everyday transactions, while accountants check and break down the same.

Bookkeeping versus Accounting

A bookkeeper’s territory is day to day financial transactions, which incorporate purchases, invoices, receipts, deals and installments. Recording these transactions is typically done through a general record or ledger. Numerous small organizations use bookkeeping programs, for example, QuickBooks or Xero to monitor their debits and credits. Their endeavors come full circle in a trial balance, which implies the last aggregate of debits and credits match.
According to one of the CPA and chairwoman of the Department of Accounting and Finance Bookkeeping is designed to generate data about the activities of the firm where as accounting is deigned to turn data into information.
The part of an accountant, subsequently, is to confirm the information entered, and after that utilization that information to produce reports, analyse the record, perform audits and get ready financial reporting records, similar to tax returns, income statements and balance sheets.  An accountant's investigation of the money related data can provide data for, business patterns, open doors for development and when to limit spending to manage cash flow. Accountants always look at the bigger picture.

Hiring a Financial Professional

Despite the extent of your organization, it is important for the continuous development to guarantee the financial exactness of every day exchanges and utilize that information to settle on choices for the eventual fate of your business. In the event that you feel your business is growing too rapidly for a "do-it-without anyone else's help approach with accounts”, you should investigate enlisting somebody to help you follow along and comprehend your business transactions.

Contact Tax Accountants Cranbourne at 1300 300 106, if you don’t know where to start!!

It's not a reality—yet—but rather accounting software is ready to dispose of accountants or tax agents. We are at a tipping point for some comparable professions: online education replacing teachers, lawful programming succeeding legal advisers.

As threatening as this sounds to experts with numerous years of education and experience put resources invested into a solitary field of expertise, the marvel of new innovations disturbing the workforce isn't a new idea. With such a radical innovation disturbance, there's dependably the same cycle of debate outrage, denial, compromise, and defeat.  Unexpectedly, accounting is instrumental in counseling with programming designers to make the very innovation that will replace them.

 Obviously, accounting software isn't new to the accounting profession, and indeed, it has turned out to be exceptionally helpful for many accountants. Even tax filing software hasn't put accountants out of business. But changes are on the horizon that could likely empower accounting software users to the point when they don't need accountants any longer, and reduce the process to a turnkey program anyone could follow.

The most recent advancement for accounting software has been in items moving into the "cloud." Some product bundles, as QuickBooks Online, offer confirmation programs, which set accountants apart as the go-to experts, however others appear to urge clients to accomplish a greater amount of the accounting themselves. This demonstration of moving accounting online doesn't encourage the end of accountants.

Accounting software won't replace accountant at the same time, just like the same as colleges won't vanish once Massive Open Online Courses (MOOCs) turn into the standard charge, and there will be special cases, just like there will likely always be students who think it's better to pay an amount that exceeds any reasonable ROI to obtain a liberal arts degree in person.  

A few special cases will probably outlive expectations, particularly for CPAs who assume a crucial part in substantial trading on open market associations, for instance, that need credentialed specialists to conduct audits and sort through other complex regulatory issues.

Automating accounting for small business owners and entrepreneurs won't be a bad thing either, as many would prefer to have turnkey programs to handle the grunt work of a task that once cost a good bit of a start-up's small budget. Financial advisors will still have a role to play in helping entrepreneurs decipher the numbers, but it's likely the software will come more complete with better industry standards, and give feedback on the financial health of the business being monitored.

Evaluate your goals and business plan to set your small business up for a successful financial year ahead.

If you are a small business owner, odds are that juggling the day-to-day demands of running your business might mean you do not enough time left in the day to think and strategise for the future.
Although it can be difficult to fit in, scheduling time to review, plan and prioritise for the year ahead is crucial in both tracking and meeting your business goals. Here are some key things to consider in your planning process.

Learn from your FY16 tax return - Your most recent tax return is an instrumental resource and looking retrospectively at the financial information for the past year should help inform your financial objectives and business plan for FY17.
Profits and losses – Identify the profitable parts of your business as well as those that are underachieving. Look at superfluous expenses that you sustained, evaluate current systems and streamline processes to cut costs and then look to invest in the stronger parts of your business.

Cash-flow trends – Cash-flow management is one of the biggest issues for small business owners. Look at means to ease the strain of cash-flow on your business, such as revising supplier terms and customer terms.

Bookkeeping habits - How did you keep your records for FY16? If the end of financial year just past was a challenge, you may want to re-think your bookkeeping habits. Sound bookkeeping will permit you to get a dynamic, regular and up-to-date overview on how your business is performing. If you haven’t already, consider switching to a cloud accounting solution to centralise financial data and take the pain out of bookkeeping.

Know your competitors and your industry - Know where you stand in your industry category or location -  we can help you recognize industry-specific challenges and benchmark your business against the turn-over and growth rates of competitors in your category.

Get to know your clients more closely - highlight your key customer demographics and their spending pattern, allowing you to develop the right communications and identify new target markets.

So if you’re one of the many small business owners gearing up for the new year, good luck with your planning. It may feel burdensome at times, but the extra work you put in now will all be worthwhile come a successful financial year 2017.

Call Tax Accountants Cranbourne at 1300 300 106 today.

How will a bookkeeper add value to my business?

A good bookkeeper will give you peace of mind.

As your business develops keeping a record of your money related exchanges turns out to be increasingly essential but as it develops you will have less time to commit to this.

For some entrepreneurs, it is a troublesome step to move from "doing it all" to paying another person to do it. However bookkeeping is effectively outsourced and your bookkeeper is prone to have lots of abilities and experience to bring to your business.

What would increase the value of your business?

A person to calculate & lodge BAS/IAS, ascertain the figures, record it and advise you know what
amount is to be paid?
Somebody to monitor your accounts payables & receivables.
Process the payroll.
Somebody to tell you that you have paid government twice (since you hadn't recollected that you had
effectively set up that PAYG/PAYE installment).
Somebody you can speak confidentially with about the accounts of your business.
Somebody who will converse with you about your records in a way you can get it i.e. translate your numbers into words.
Somebody who will survey costs and recommend approaches to spare.
Somebody to manage tax for your benefit.

There are interminable ways a bookkeeping can increase the value of your business.

In the event that you are uncertain on how a bookkeeper will have the capacity to help your business, give us a call. We have a team of knowledgeable and experienced bookkeepers and you will soon realise how you managed without us.

Any bookkeeping or tax queries? Call BookSmart Accountants Lynbrook on 1300 300 106.

SuperStream makes super easier. All employers must use SuperStream when lodging and paying super and we will tell you how. Until now making super payments for employees has involved lodging and paying to different super funds, taking several hours to complete. SuperStream is here to change that, making the job easier, quicker and better.

SuperStream data is in a standardised format so it can be transferred reliably across the super system – between employers, funds, service providers and the ATO. This means:

Employers can make all their superannuation contributions in a single transaction, even if they're going to multiple superannuation funds.
Super contributions and rollovers can be processed faster, more efficiently and with less mistakes.
Individuals can be more reliably linked to their superannuation, reducing lost accounts and unclaimed money.

With SuperStream, super payments are electronic; you can pay all your employees super and send them information through one system, saving you time and effort. To get started you need to make an account to do Super electronically, these include your payroll system, your super fund system or a super clearing house. You can also ask an experienced accountant or bookkeeper to help you with one of these options. Check that your option is SuperStream ready.
Next you need to collect key information on your employees including their TFN and a unique super identifier(USI). Once you have all the information enter it into the system, finally you should start using SuperStream from 1st July, 2016 so you can ensure everything is running smoothly and you can enjoy the benefits.

Many employers are paying super in just minutes. If you have 19 or less employees you must be SuperStream ready by 30th of June 2016 or if you have 20 or more employees you should be using SuperStream now. If you would like more information please click on the link: www.ato.gov.au/Super/Superstream/Employers/Employer-checklist--a-step-by-step-guide/

You can also give us a call us on 1300 300 106 to discuss SuperStream in detail and how it can benefit you and your business.

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Individual tax returns from $99 - $120