You have hired a bookkeeper to look after your accounts. What do you need the accountant for?
This is not an uncommon question. Bookkeepers and accountants are part of a process to look after your financial affairs. You could say that bookkeepers look after the first stage and accountants look after the second stage. Bookkeepers do not require formal education in business or accounting. Accountants at minimum require a university degree and must meet annual training requirements and are monitored by their professional standards board. At Evolve, your work is actually completed by trained accountants so you know that you are always getting a high level of service. Below are the services both offer:
Bookkeepers are responsible for the processing of business transactions. This includes:
- Data entry of bills and invoices
- Reconciliation of the bank accounts
- Payroll processing (not HR advice)
- Reconciling Accounts Payable/Accounts Receivable and may pay bills and chase up outstanding customer invoices.
- Good bookkeepers will provide a management report for the business owners and managers to enable them to see how the business is performing.
Accountants build on the work a bookkeeper has done and takes it further. These are the following services an accountant is responsible for:
- Review the work of the bookkeeper to ensure accuracy.
- Apply their taxation knowledge to ensure financial statements apply with tax law.
- Produce year end financial statements and tax returns
- Review the accounts to provide tax minimisation advice.
- Provide a wide variety of business advice.
Accountants often complain about the quality of data provided by bookkeepers. At Evolve Online Bookkeepers, we not only aim to provide you with exceptional service, but we aim to keep your accountant happy too. We will providing them with a high quality accounts and liaise with your accountant to produce accounts as per their requirements. Don’t hesitate to contact us if you’re having bookkeeping problems.