Get to know Accounting and Bookkeeping

Submitted by sylvia.wong@up… on Thu, 12/08/2022 - 17:17

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.

Sub Topics

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.

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Accouting Ananlysis Balance Financial Document Business Investment Concept
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