It’s often a misconception that a bookkeeper and an accountant are the same thing or they play the same role in your business but just have a different job title. Having an accountant work alongside a bookkeeper compliments the hard work done behind the scenes from the bookkeeper. Therefore a bookkeeper often works alongside an accountant and vice versa.
A bookkeeper will work closely with you as a business owner. They will get to know your business inside out, often developing relationships with your clients and suppliers. Due to this close in depth relationship a bookkeeper can help you to streamline your processes to make your business more efficient and increase productivity.
At Long White Cloud Accounting not only will we monitor your business transactions but we will also use your historic data to create cash flow forecasts that we can discuss together to protect the future success of your business.
An accountant will use the information that the bookkeeper has gathered together in order to file your business accounts for the year. If you chose to just hire an accountant rather than a bookkeeper, then you will need to do all the behind the scenes admin to collate all the information they require. This can be a lengthy process so if you have the budget to do so it’s always best to hire a bookkeeper and an accountant alongside each other. If you chose to do this part yourself you need to be aware that in order for your bookkeeping to be accurate you must keep on top of reconciling your accounts on at least a monthly basis. If you leave this too late the more difficult it will be to recognise the problem in any discrepancies.
Your bookkeeper and accountant, with your permission, can liaise directly with each other so that you’re not acting as a go-between, between the two. Quite often if you chose to be the middleman communication can be misinterpreted so it’s definitely worth making sure your bookkeeper and an accountant have a good relationship together.
A bookkeeper is of course extremely knowledgeable when it comes to legislation and the day to day number crunching in your business. But there are things which an accountant will be more specialised in to give sound advice when it comes to your business finances, however they won’t necessarily know your business processes, this is why having both a bookkeeper and an accountant on the scene will truly compliment your business.
Make sure you ask your bookkeeper about their qualifications and what services they offer. Some may well be qualified to accountant level but choose to concentrate on the bookkeeping side as that’s their passion. Just like me! I’m a qualified Accountant but I enjoy the bookkeeping side more as I like to work very closely with business owners. I love to see the difference in their bookkeeping systems and processes along with providing up to date management information throughout the year.
If you’re thinking of working alongside a bookkeeper who is as passionate about your business as you are, then get in touch!
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