Small businesses tend to fail; it’s a common occurrence that has even been numbered with a percentage. More than 50% of small businesses fail somewhere in the first five years. What are the reasons? Because they are unorganized, not enough focus or determination and bad financial management. The business owner is desperate to keep his business afloat but, in their haste, they don’t outsource their money to their accountants and bookkeepers and it’s just one step closer to strengthen their bankruptcy. What they don’t know is that a bookkeeper’s purpose is to organize and finalize a business owner’s establishment.
Accountants vs. Bookkeepers
Accounting has many branches and most knows that bookkeeping is pretty much one of those many, in fact, some people, even people who are professionals in this world, confuses accounting things as bookkeeping or vice versa. You find bookkeepers everywhere, in more places than just the accounting branches. Their availability is anywhere you wish it to be. Depending on the scale of a project, a bookkeeper could pretty much do an accountant’s job. Yet accountants are more professional, and when high reports are to be made, it is indeed necessary you call a professional licensed individual. Because bookkeepers are cheaper to get, most business will settle with one to avoid paying more for an accountant, but this is a big mistake as a bookkeeper cannot replace an accountant in full.
Their training process is different. You can become a bookkeeper without having studied it, but some do take courses or small trainings that one can fulfill in the span of a couple of months. An accountant has to be more formed, they have to go to college, with extensive courses, preparing, licensing, internships and heavy tests in finance and analysis that are not easy to fulfill in a mere two years. You are heavily required to have a degree and sometimes more honors. The bookkeeper’s only expertise should be for the checkbooks, not the GAAP, GRAP and IFRS. A bookkeeper, even if one that took some sort of minimal training or course is not taught to know these acronyms and many will probably not know what these are. Outsourcing should be in the majority controlled by an accountant.
When a business owner is hiring a bookkeeper, they should really get to know what kind of credentials this person has so they can be sure that he or she will fulfill what is truly needed. But for accountants, getting into some details of bookkeeping is tedious and thus they will need assistance from a bookkeeper. An accountant can after all outsource to a bookkeeper.
Neither cannot be greedy! Bookkeepers and accountants can work hand in hand and it can even be fulfilled by the same person as long as they can deal with the time, heaviness and complexity. It’s not unheard of. Yet if a business is looking to better their establishment, it is preferred that you get both a bookkeeper and an accountant to be surer and perhaps not even weight too much on one single person.
Check out Bookkeeperco.com.au for more informations and help.