18 Jan Bookkeeper Vs Accountant

Many people ask me “what is the difference between a bookkeeper and an accountant?”

Simply put, a bookkeeper – the only word in the English language that has three consecutive double letters – performs the basic functions of accountancy. The bookkeeper enters the financial records in the accounts and prepares the information for the accountant. The accountant is qualified to use that data and prepare tax returns as well as providing high end financial advice. Of course an accountant can do bookkeeping but their talents (and fees) are better suited to the more complex business of tax.

A good bookkeeper can set up an accounting system, enter data appropriately and prepare financial reports. They can also administer payroll and HR functions such as superannuation, as well as prepare simpler reporting for the Australian Taxation Office (ATO). To charge a fee for services like these they need to be a registered BAS agent. This means that they have qualifications and ongoing professional training administered by the Tax Practitioners Board (TPB).

Always ensure that any bookkeeper you engage is a registered BAS agent as that protects you in the very rare event of malpractice (all registered BAS agents must carry professional indemnity insurance) and ensures that the agent is qualified and up to date with the ever evolving requirements of the ATO.