Do You Need Both an Accountant and a Bookkeeper?
As a business owner, one of the most common questions you may have is: “Do I need both an accountant and a bookkeeper, or can I get by with just one?” This is a question I’ve encountered throughout my career from the star. My advice is if you can – have both. I am a bookkeeper, I am also a CPA. In my experience, you are usually a bookkeeper for a reason or an accountant for a reason. Both roles need different strengths and it doesn’t hurt to have some impartiality if you use two different providers. Now, the answer for your business may depend on the size, stage and complexity of your business.
Understanding the Roles of a Bookkeeper and an Accountant
While bookkeepers and accountants both deal with financial records, their roles are quite different. Here’s a quick comparison:
Bookkeeper:
Handles the day-to-day financial transactions of your business, including data entry, reconciliations, payroll processing, invoicing, and GST/BAS preparation. A bookkeeper ensures your financial records are accurate and up to date.
Accountant:
Focuses on the bigger picture, such as tax planning, compliance, financial reporting, and business strategy. Accountants interpret the financial data prepared by bookkeepers to help business owners make informed decisions.
Why You Should Have Both
Having both a bookkeeper and an accountant can be beneficial for several reasons:
Complementary Expertise
A bookkeeper ensures your financial records are accurate, while an accountant uses those records to provide financial insights and tax strategies.
Checks and Balances
When both professionals are involved, they can cross-check each other’s work. A bookkeeper may notice discrepancies in journal entries, and an accountant may identify areas for improvement in bookkeeping processes.
Scalability
If your business is in its early stages and you can’t afford ongoing bookkeeping services, a bookkeeper can help set up your accounting software and train you on basic data entry. As your business grows, outsourcing bookkeeping allows you to focus on scaling while ensuring compliance.
Higher-Quality Work
Accountants and bookkeepers specialise in different aspects of financial management. By working with both, you get expert-level service in each area rather than a one-size-fits-all approach.
Should You Use an Accounting Firm’s Bookkeeping Services?
Some accounting practices offer bookkeeping services as part of their offerings, which can be a convenient option. However, using a separate bookkeeping practice has its advantages, such as:
- Access to independent financial perspectives
- Potentially lower costs compared to accounting firms
- More personalised and flexible bookkeeping support
The Bottom Line
While some small businesses start with just a bookkeeper or accountant, having both professionals ensures your financial records are accurate, compliant, and optimised for business growth. If your budget is tight, start with a bookkeeper to manage daily transactions, then bring in an accountant for tax time and strategic advice.
By having the right financial professionals on your team, you can make better business decisions and set yourself up for long term success.
Need help with bookkeeping? If you’re looking for expert bookkeeping support, we would love to chat. You can contact us here.
