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What Is the Difference Between Bookkeeping and Accounting?

Accounting is the method by where a company’s financials are documented, summarized, analyzed, consulted, and stated on. Bookkeeping is the record part of this procedure, in which all of the financial transactions of the business are submitted into a database.

An accountant is in responsibility of assessing and translating the financial data of a company, and for coverage on it. Tax accountant Melbourne has a superior skill set than a bookkeeper, whose main task is managing the actual record of the company’s financial transactions.

The responsibilities of a bookkeeper vary, varying on the company. Here is a summary of the duties typically related with a bookkeeping job:

  • Advise, implement, or handle accounting software for the advancement of an entry of accounting.
  • Recommend, execute, and monitor bookkeeping strategies and procedures.
  • Create credit and debit accounts, including the naming of expense categories.
  • Handle banking financial activities.
  • Verify documented expenses are within company’s procedures and manage authorizations.
  • Verify the truth of information and that the bank account balance.
  • Maintain records, and backup and archive, as necessary.
  • Assist the accountant in the planning of financial statements.
  • Assist with audits.

What Are the Duties of an Accountant?

The duties of an accountant can be broken down into four areas:

Data Management

Overseeing how data is collected, managed, and revised. For instance, a bookkeeper might advise the software for a double entry system of accounting, but the auditor would approve it.

Financial Analysis and Consultation

Assessing data and recommending management.

Financial Reports

Being able to create the specification business reports and statements necessary by businesses and the IRS.

Regulatory compliance

Being up to date on authority regulations and certifying the company is following industry guidelines.

With our team of qualified tax accountants Melbourne, completing your bookkeeping, you’ll rest easy knowing your business’ books are in good hands. Rick & Mon Accounting provide the bookkeeping services, accounting, and financial services your business needs. 

 

 

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