As a business owner, you know the daily difficulties of doing certain tasks and running the entire show smoothly. You need to focus on generating income, take care of all the financial dealings, and keep your customers happy. Taking care of all the financial transactions is not a simple task, and you may need professional support like that of Darcy Services Australia. A bookkeeper Perth is no longer involved in taking care of just everyday financial transactions. They have a lot more to do. Let us see if they can help you with the tax returns?
Understanding the difference between a bookkeeper and an accountant:
A bookkeeper and an accountant have different responsibilities to carry out. The main work of an accountant is to:
- Help with statutory returns
- Take care of the legal company structures
- Provide financial advice.
They are a qualified professional who is licensed and registered with their association.
On the other hand, bookkeepers take care of a lot of responsibilities of a small business. Their main task is to record and report everyday financial transactions, but the duties of a bookkeeper have grown in recent times. They now also take care of:
- Dealing with accounting software
- Manage financial documents and inventory control
- Take care of Point of Sales transactions.
- Use the skills to develop and maintain an internal financial process.
What all can a bookkeeper do?
Some essential tasks that a bookkeeper does to keep the business functioning smoothly are:
- Tracking the daily transactions
A bookkeeper does handling and recording of everyday bank transactions. They also make entries in the accounting and keep a check on the cash flows. They send out invoices and maintain the accounts receivable register. They also chase any late payment and take care of the accounts payable register.
- Check the cash flows
It is the responsibility of a bookkeeper that there is no cash shortage in the company. They balance the revenues and expenses and offer necessary advice to the management to keep the functioning of the business smooth.
- Pre-preparation for the accountant
The bookkeeper ensures that all the entries are up to date and the books are complete for the accountant to file the tax returns. They enable and assist the accountant in helping in strategic financial decisions.
- Bookkeepers and accountants work in unison
An enormous business will have both bookkeepers and accountants. They both help in the solid financial foundation of the company. They, in unison, can help choose the right accounting software report a clear picture to the management.
Tax Management:
The accountant uses all the information provided by the bookkeeper for preparing the company reports, including all the details about income and expenses, liabilities, assets, net profit, and tax. Then, the accountant files the tax returns based on all the financial data provided by the bookkeeper.
Based on their experience, the bookkeepers may also help in filing basic returns, but it is always good to seek the help of professional accountants to do so.
Conclusion:
Bookkeeping helps track down the fine details of the transactions and record them on time. It reduces the accounting costs and helps to manage the cash flows. A bookkeeper prepares the base for an accountant and provides them with vital figures. They help to control the financial data and run the business smoothly.
Without proper bookkeeping, the financial data cannot be accurate, and the accountant will never get a clear picture of the finances. Bookkeeping helps you with all this and gives valuable insights into financial health.
