It is critical for all businesses to keep close track of their financials and cash flow. Keeping track of transactions, expenses and cashflow can be quite overwhelming and in many cases is done incorrectly or manually; adding to extra costs at the end of the year.
So you may ask yourself what the difference between a bookkeeper and an accountant is. Well firstly it is important that both parties work collaboratively for the best interest of you and your business. In summary a bookkeeper records daily financial transactions, including purchases, receipts, sales and payments, usually through a general ledger or journal. An accountant’s role is to verify the data and use this data to generate reports and prepare financial reports such as company tax returns or income statements.
The amount of time an accountant spends on a businesses financial reports is dependent on the quality of the work completed by the bookkeeper. When a business does not utilise the services of a bookkeeper they are more likely to incur extra charges for audit and assessments as the accountant would spend time ensuring information is correct.
The best way to think of a bookkeeper is to think of them as your outsourced finance department who looks after all your financials from transaction categorisation, payroll and BAS lodgments. Give Omnia a call to see how they can help you work smarter and not harder, accounts are reviewed by CPA accountants and can help you save money.