Accountant V Book keeper, what’s the difference? Is it too expensive to have both?
It is important to know the difference between an accountant and a book-keeper, so you can decide what your business needs.
Book Keepers – book-keepers' function is to record and maintain the daily financial transactions of a business. Book keepers sometimes can prepare GST returns. Book-keepers can also provide financial performance reports for internal business decisions.
Book keepers will insure that business expenses have been taken care of. Business that do not take care of their expenses will find it difficult to access credit in the future and will find it much harder to open accounts with wholesalers and other suppliers. If you are in the retail or on selling a product having an important supplier revoke your account with them could mean the end of your business.
Book-keepers will also take care of invoicing business clients on time. Good book-keepers will provide aging accounts receivables reports to management and make sure any outstanding invoices will be paid. Providing more income and improving cash flow. As we all know cash flow is the reason why 90% if businesses fail. Good management of accounts receivable will help you become the 10% the does not fail. From the points above one can see how vital good book-keeping is to any business.
Accountants – Accountants specialise in providing financial statements for taxation, audit and internal purposes. Accountants can also provide financial performance reviews. Accountants will know taxation law very well.
Accountants will be able to help you use your profit in the best manner. Reducing your liability at the same time increasing the assets and the value of your business. Businesses who do not have an accountant actively helping them throughout the financial year will end up paying more tax. Hard fought profits will be sent to the IRD rather than reinvested into the business.
Surprisingly most business owners do not seek help in this area until the financial year is already over, at that point it is too late for an accountant to effectively help reduce tax liability.
Business owners will tend to focus on cost of a service rather than what benefit that service will provide them. Here are 5 reasons why it is worth the money.
Cost saving - Your accountant will help you manage your tax liability resulting in more money in your pocket.
Save time - Leave book keeping and accounting to an expert, freeing up your time to focus on more important aspects of your business, sales can increase by15% to 20% just by offloading daily book-keeping duties.
Helps your business grow – Accountants work with a lot of businesses, they will be able to provide you with insights on how to grow your business, take advantage of their experience.
Allows you to focus on the important things – Pass on accounting and book keeping duties to the experts, this will allow you to focus more on billable activates resulting in growth and profitability
More time to focus on profit, help with the growth of your business, less money paid to the IRD, more money in your pocket.
As a small business could you afford someone to take care of you daily book-keeping and have an accountant to help you with tax? Would that be to expensive?
At 93 accounting we have designed a package with small businesses in mind.
Our package includes
Accounts payable management
Accounts receivable management
Unlimited Taxation advice
Financial performance reviews
All this starting at just $50 a week.