Do I need a bookkeeper, an accountant, or both?

Introduction:

As businesses expand beyond the early stages, it often becomes unrealistic for the founder to balance the books alone. What once felt like a simple task soon becomes a demanding workload, filled with endless accounting transactions to record, documents to organise, and reports to deliver accurately and on time.

Relying on internal team members who are already managing other priorities might work for a while, but without specialist support, important details can be missed, reporting standards can slip, and business progress can slow down.

This stage often leads business owners to an important decision: Should you hire a bookkeeper, an accountant, or both?

Although the terms are sometimes used interchangeably, bookkeepers and accountants bring distinct skills and focus areas. Understanding how each one supports your business can help you strengthen operations, stay compliant, and create a more organised path for future growth.

In this blog, we will explain the differences between bookkeepers and accountants, and guide you in choosing the support your business needs to grow and succeed for the long term.

What are the duties of a bookkeeper?

A bookkeeper helps keep your business organised and running smoothly by taking care of day-to-day records. They ensure everything is tracked, processed, and compliant with legal and reporting standards.

Main duties include:

• Records daily business transactions such as sales, expenses, and payments.
• Updates ledgers and ensures all accounts reflect real-time activity.
• Prepares and sends invoices, tracks receivables, and follows up on overdue payments.
• Reconciles bank statements and credit card accounts to identify any discrepancies.
• Processes payroll, including superannuation, leave entitlements, and employee updates.
• Organises and maintains documentation required for ATO reporting and audits.
• Ensures all records are up to date so accountants can prepare reports and tax returns.

What are the duties of an accountant?

An accountant helps guide your business through more complex decisions and long-term planning. They offer insights, identify risks, and help you make smart choices.

Main duties include:

• Advising on starting, buying, growing, or closing a business.
• Assistance with tax matters, including GST registration, BAS preparation and lodgement, and meeting ATO compliance requirements.
• Guidance on meeting reporting obligations accurately and on time.
• Support in managing income, maximising eligible deductions, and applying business concessions to minimise tax.
• Help with employer obligations, including payroll setup, PAYG withholding, and superannuation contributions.
• Assistance in setting up and maintaining accurate and compliant business records.

Do I need a bookkeeper if I have an accountant?

We often get asked, "Do I need a bookkeeper if I have an accountant?" The answer lies in understanding how these two roles complement each other, particularly when it comes to maintaining compliance and ensuring accuracy across your business operations.

Bookkeepers handle the daily management of business transactions, ensuring that every sale, purchase, and payment is accurately recorded. Their attention to detail keeps your business's financial records organised and ready for review.

An accountant builds on this foundation by reviewing the records, checking for accuracy, and providing an additional layer of oversight. This review process helps detect and correct errors early, improving the quality and reliability of your business reporting.

Beyond verifying information, accountants ensure that your reporting aligns with ATO requirements and current tax regulations. Their role protects your business from compliance risks and helps you meet important deadlines confidently.

The collaboration between a bookkeeper and an accountant goes beyond just maintaining accuracy. It also supports broader business planning. With clear and reliable information, an accountant can offer insights, suggest ways to manage obligations more effectively, and guide better decision-making that supports your business growth.

So, why not just choose one? Because they serve different purposes. The accuracy and day-to-day management of the bookkeeper empower the accountant to give you the high-level advice and planning you need. This combination can propel a business forward, giving you the peace of mind to focus on what you do best - growing your business.

Advantages of having bookkeeping and accounting services under one roof:

Bookkeepers and accountants each play an important role in keeping your business organised and running efficiently. Managing these services together offers a range of advantages that make a real difference to your business operations.

Organised workload management:

A coordinated approach divides daily transactions and financial reporting tasks logically, avoiding overlap and confusion. This ensures smoother workflows and better resource use and helps control operational costs, giving you more time to focus on business growth.

Direct and faster communication:

Internal communication between your service team is immediate. Instead of relaying messages or documents between different providers, your experts collaborate directly, resolving queries faster and minimising unnecessary delays.

Streamlined systems and processes:

With integrated systems, data flows smoothly from one step to the next without requiring manual adjustments. This reduces errors, improves accuracy, and speeds up the preparation of financial reports, tax returns, and compliance documents.

Reliable support, when you need it:

Support becomes much stronger when there’s full visibility across your business records. If one professional is unavailable, another can easily step in without losing track, ensuring you always have quick answers and continuous service without interruptions.

Better data security:

Minimising how often your financial information is handled or transferred reduces the risk of breaches. Keeping everything managed internally strengthens the security of your business’s sensitive financial data, offering greater peace of mind.

Important points to consider when selecting bookkeeping and accounting support

To choose the right accountant or bookkeeper for your business, focus on these carefully selected factors to assess their skills and how well they match your requirements:

• Ask about their educational background and professional certifications. Confirm if they are affiliated with recognised accounting or bookkeeping bodies.
• Inquire about their years of experience in the field, especially regarding businesses similar to yours, to gauge their expertise and familiarity with your industry's challenges.
• Request details about their typical clientele to understand if they frequently deal with businesses of your scale and nature. This can also include asking for references or testimonials.
• Discuss the breadth of their services to ensure they cover all your financial needs, from tax preparation to financial planning and business advisory services.
• Query how they plan to proactively identify savings and efficiencies within your financial operations beyond compliance and documentation.
• Understand their expected turnaround times for tasks to ensure these align with your business timelines.
• Confirm their proficiency with the accounting and bookkeeping software you use or their flexibility in adapting to your systems.
• Clarify their preferred communication methods (email, phone, in-person) to ensure they match your expectations for accessibility and responsiveness.
• Discuss their fee structure in detail, including how they bill for various services and any potential for negotiation to align with your budget constraints.

Wrap up!

Having an accountant and bookkeeper working together creates a powerful advantage for your small business. It ensures better accuracy, smarter planning, and stronger financial management.

If you are looking for reliable support, CleanSlate is here to help. Our experienced team handles your bookkeeping, BAS lodgements, and business tax returns with precision and care, so you can stay focused on growing your business.

Ready to take the stress out of managing your accounts? Contact CleanSlate today and experience the difference of having a dedicated team on your side.