Know the Difference: Bookkeeping vs Accounting

If you’re confused about the difference between bookkeeping and accounting, this blog post is for you. Take a squiz.

What is bookkeeping?

Bookkeeping is the day-to-day tracking of your business’s finances.

A bookkeeper’s responsibility is to record and update daily financial information in an organised manner so that they’re accessible and comprehensible.

What tasks will a bookkeeper do?

A day in the worklife of a bookkeeper includes tasks like

  • Maintaining accurate daily records
  • Maintaining accounts payable and receivable
  • Reconciliation of accounts
  • Payroll
  • Invoicing
  • Handling receipts and bills

What is accounting?

Accounting is the practice of handling complicated and “big picture” financial tasks.
Streamlining the decision-making process with competent financial analysis is an accountant’s core responsibility.

What tasks will an accountant do?

A day in the worklife of an accountant includes tasks like

  • Analysing financial health and business performance
  • Generating financial reports and statements
  • Designing budgets
  • Tax planning
  • Ensuring tax compliance

What qualifications does your bookkeeper need to have?

Bookkeeping is a relatively simpler role than accounting. A good bookkeeper requires

  • Accounting systems knowledge
  • A certification or a diploma in NZ bookkeeping
  • A knack for organisation and attention to detail

What qualifications does your accountant need to have?

A good accountant requires extensive financial knowledge in academic and professional capacities.

  • A minimum three-year accredited bachelors degree in accounting.
  • A membership in Chartered Accountants Australia and New Zealand (CAANZ), or Certified Practising Accountant (CPA) in Australia.
  • Prior professional experience as accountant or in an accounting-related role.

Do you need both an accountant and bookkeeper?

Short answer: Most likely, yes.

Long answer: Bookkeepers are focused on keeping your business running smoothly with organised finances. They’re focused on the present; the day-to-day.

Accountants are focused on analysing your current finances to ease business decision-making. They’re focused on the future.

If you’re a business owner that prioritises growth, then you need both.

But hiring full-time staff is too dear of a commitment. This is why we recommend outsourcing with affordable accounting and bookkeeping packages pricing. We’ve got an Ebook on why you can’t afford not to outsource. Drop your email in the chat and we’ll send it to you.

We’ve got you–Flexible & Affordable Accounting and Bookkeeping in NZ

Our expert accountant and NZ tax accountant services and NZ bookkeeping services are catered to small business owners who prefer a more affordable and flexible alternative to hiring in-house staff.

Working with us, you can get your hands on super competitive accounting & bookkeeping prices for high-rated service quality.

Interested? Drop us a message on the chat and we’ll take it from there.

Talk to us about how we can support you and your business.

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