Welcome to the world of Accounting and Bookkeeping.
Accounting and bookkeeping are both important parts of managing your finances. Bookkeeping focuses on recording and organising financial data. Accounting is the interpretation and presentation of that data to business owners and investors.
Let’s go and explore this further.
Before we begin to learn about Accounting and Bookkeeping let’s explore what the job entails. What are the differences between the two (2) roles? What are some of the tasks you may need to complete?
Below we have compiled a position description on the tasks and roles of both a Bookkeeper and an Accountant.
Bookkeeper
Accountant
Bookkeeping vs. Accounting
What are the differences?
Next, let's break this down further. Although Bookkeepers and Accountants have similar aspects to their job there are some distinctive differences. Let’s have a look at the difference.
| Bookkeeping Tasks | Accounting Tasks |
|---|---|
| Record and categorise financial transactions | Reviewing financial statements and account balances |
| Create customer invoices and collect payments | Preparing to adjust entries |
| Process payroll and remit payroll deductions | Perform financial analysis and financial planning |
| Conduct bank and credit card account reconciliations | Review or audit balances |
| Generate monthly financial statements such as an income statement, balance sheet and cash flow statement | Complete annual tax returns and conduct tax planning |
| Maintain general ledger and chart of accounts | Creating financial forecasts |
In a year where the top 100 companies experienced a robust 9% revenue growth, accounting firms that diversified beyond traditional auditing and taxation to focus on higher-margin consulting emerged as the major winners. These firms demonstrated significant success in capitalising on new opportunities.
Below is a list of some of the largest accounting firms in Australia and New Zealand.
