What Is The Difference Between An Accountant And A Bookkeeper?

When it comes to the distinctions between an accountant and a bookkeeper, there is a great deal of overlap between the two jobs. For illustration, a component of both of these vocations is maintaining financial records. On the other hand, there are a number of important distinctions that can be drawn between the two.

Because they have a wider range of experience and a more extensive knowledge base, accountants are typically able to provide more sophisticated services. On the other hand, a bookkeeper is a highly specialised professional who often focuses on bookkeeping and accounting-related operations. Bookkeepers may be found in most businesses. Let's take a closer look at the differences that exist between these two types of obligations by going into more detail.

Despite the fact that there is a considerable difference between the two, the phrases "bookkeeping" and "accounting" are frequently used interchangeably by the general public. An accountant is an educated and accredited professional who works with financial accounts, taxes, and audits.

Accountants may specialise in either public or private accounting. Bookkeepers and accountants are two names for the same profession. A "bookkeeper" is a person who is responsible for maintaining accurate records of financial transactions. If you are considering going into business for yourself, it is imperative that you have a solid understanding of the differences between these two positions before you start your own company.

The creation of financial statements, the management of tax filings, and the providing of financial advice to clients are the primary responsibilities of an accountant in most organisations. On the other side, a bookkeeper is responsible for activities such as recording financial transactions and reconciling account balances.

In light of this, it is important to note that the roles of accountants and auditors, despite the fact that both play a vital part in the administration of a company's finances, are essentially distinct from one another. Therefore, prior to looking for someone to assist you with the accounting requirements of your firm, it is vital to have a comprehensive grasp of the differences between these two professions in order to make an informed decision.

Let's get started!

What Does A Bookkeeper Do?

Since you will be in charge of handling the day-to-day financial operations of a firm as a bookkeeper, you will need to have a strong interest in mathematics in order to be successful in this field.

You will also be responsible for recording all financial transactions into the general ledger and ensuring that all financial statements are always correct, up to date, and well-organized. In addition to this, you will be accountable for the overall financial health of the company.

Because of this, a firm is able to obtain an accurate view of its financial status (including its sales, costs, and bottom line) at any given time. This is possible because of accounting software.

As a bookkeeper, it's probable that you'll also be responsible for issuing invoices to customers, following up with clients who owe money, paying suppliers, and processing payroll.

Despite the fact that this region in Australia has remained the same size over the course of the last five years and is forecast to continue to remain the same size over the course of the next five years, bookkeeping continues to be a very popular career choice.

According to Job Outlook, it is predicted that there will be approximately 10,000 job openings for bookkeepers annually across the numerous states and territories that comprise Australia. These job openings will be located in both the private and public sectors. The majority of the blame for this predicament lies with the high rate of employee turnover.

Bookkeepers who work full-time may anticipate earning an average weekly income of approximately $1234, which is a little less than the "all jobs" average weekly wage of $1460 AU. On the other hand, one's earning potential may increase as they get more expertise in their field.

Even while there is the opportunity to work either full-time or part-time, the vast majority of people, or 67 per cent, only have jobs that allow them to work part-time.

What Does An Accountant Do?

If you want to pursue a career as an accountant, you will be expected to prepare tax returns and provide account information on a regular basis. You will need to be able to report on financial information as well as interpret, analyse, and summarise such information.

This helps companies have a better understanding of their current financial problems, which can be beneficial when making strategic decisions.

For instance, you could be able to aid in the process of discovering opportunities for cost reduction, ways to maximise profitability, and other forms of professional advice on topics such as tax preparation or financial planning.

It is vital to acquire the "soft" ability of analysis in order to be successful in the field of accounting. In spite of this, it is absolutely necessary for you to possess excellent and crystal-clear communication skills, to be methodical, and to be willing to put in a significant amount of effort.

The number of accountants is expected to grow from 199,200 in 2018 to 207,200 by the end of the decade, as stated by Job Outlook, which indicates that the number of accountants has been growing over the course of the past five years and is forecast to expand further. In addition, it is expected that there would be a total of around 16,800 new job possibilities available each year. These opportunities will arise as a direct result of both newly created job openings and employee turnover.

This suggests that it is potential for others to be interested in making use of your expertise.

It is feasible to earn approximately $1,600 per week working full-time as an accountant, which is significantly more than the typical weekly income for all jobs combined.

In addition to that, there is a chance that this individual's salary will increase as they obtain more expertise in their field.

In contrast to the profession of bookkeeping, where many people work as accountants in a part-time capacity, the majority of people working in this sector are employed full-time.

What Is The Difference Between A Bookkeeper And An Accountant?

A bookkeeper will provide a hand in the continual documentation of financial transactions and operations that are required to ensure the company runs efficiently.

An accountant, on the other hand, will review the information that was provided by the bookkeeper, report on the information that was provided, and provide financial advice based on the results.

Accountants will also have a strong grasp of the requirements for taxation and will be able to serve clients in the most effective manner possible in this domain.

As was mentioned before, the process of continuing to manage the financial health of your company is an ongoing one, and bookkeepers play a crucial role in this process.

The following are some examples of jobs that are examples of some of the jobs that are regularly completed by the bookkeeper:

• Invoicing, receiving payments, making payments, and processing a variety of other sorts of payments are all part of the process of processing financial transactions.
• Taking responsibility for the processing of payroll and the maintenance of your system
• Establishing the foundation for the preliminary financial statements
• It is necessary to reconcile the accounts, and reports on the reconciliation must also be made.
• Maintaining accurate records of your outstanding debts and payments, generally referred to as your accounts receivable and accounts payable, is an essential component of successfully operating a business.
• Calculating GST
• Reporting on your BAS and making the necessary preparations
  Creating, implementing, and doing analysis on the many different types of accounting systems

A bookkeeper is capable of doing a wide variety of other tasks, the vast majority of which are tied to the on-going maintenance of the financial records.

Although an accountant is likewise qualified to assist in these areas, it is essential to be aware that the rates charged by bookkeepers and accountants are likely to differ. This is something that needs to be kept in mind at all times. This is something that needs to be taken into account, so keep that in mind.

Although an accountant may be responsible for certain areas of accounting, the majority of their time is spent providing strategic advice and completing in-depth analyses for the organisation. This is because accounting is a complex field with many moving parts. An accountant, for instance, will be able to provide financial estimates and guidance on the future financial aspects of your business by conducting a review of the company's previous performance and comparing it to the forecast. This can be done in order to determine how well the company will meet its financial obligations in the future.

The following is a list of some examples of additional services that a certified public accountant might offer:

• Advisory services on tax matters and financial planning
• Provision of assistance in the establishment of enterprises
• Auditing
• Standards for reporting and compliance that must be met by companies
• Advisory services for pension and retirement savings funds
• Financial management guidelines

How To Manage A Career As A Bookkeeper?

A bookkeeper is capable of doing a wide variety of other tasks, the vast majority of which are tied to the ongoing maintenance of the financial records.

Although an accountant is likewise qualified to assist in these areas, it is essential to be aware that the rates charged by bookkeepers and accountants are likely to differ. This is something that needs to be kept in mind at all times. This is something that needs to be taken into account, so keep that in mind.

Although an accountant may be responsible for certain areas of accounting, the majority of their time is spent providing strategic advice and completing in-depth analyses for the organisation. This is because accounting is a complex field with many moving parts.

An accountant, for instance, will be able to provide financial estimates and guidance on the future financial aspects of your business by conducting a review of the company's previous performance and comparing it to the forecast. This can be done in order to determine how well the company will meet its financial obligations in the future.

The following is a list of some examples of additional services that a certified public accountant might offer:

• Counselling on tax matters and financial planning
• Provision of assistance in the establishment of enterprises
• Auditing
• Standards for reporting and compliance that must be met by companies
• Advisory services for pension and retirement savings funds
• Financial management guidelines

How Do I Become A Bookkeeper?

To obtain the degree of competence necessary to work as a trained bookkeeper in Australia or anyplace else in the world, one must complete a minimum of four years of school at a reputed college or university.

In order for the individual to even be considered for admission to such a programme, they only need to have average marks in mathematics, English, and computer competence. This is because there are not a lot of severe standards to meet in order to enrol in a class like this. On the other hand, you can take bookkeeping classes online; this is a wonderful alternative for you if you have a family or other occupations in addition to your schooling, as it will not interfere with either of those things.

The abilities of a bookkeeper are required by virtually all businesses, which means that those who choose to pursue bookkeeping as a vocation have access to a diverse pool of job options. If, on the other hand, you have your sights set on working for a large corporation in the future, you will need to start your career in accounting at an entry-level position so that you can learn from coworkers who have more experience than you do.

Training is not a key concern; rather, most firms will want to know whether or not you are accredited by the necessary organisations that are responsible for the regulation of the field. If you have excellent concentration, the ability to multitask, are discreet, honest, trustworthy, and are quick on your feet, a job in bookkeeping can be an excellent choice for you.

How Are Bookkeepers Different From Accountants?

The maintenance of one's books is an essential function. The question that needs to be answered is how it is distinct from accounting. Comparisons between the two services are made rather frequently, yet in reality, they complement one another:

Bookkeepers are accountable for the day-to-day operations of an organisation in addition to ensuring that the financial records of the business are accurate and comprehensive. They are also able to advise you on challenges that may affect you in the near future, such as problems with your cash flow or late payments on bills. They are able to do this because they are aware of these potential issues.

Accountants are going to look over the accounts that have been created, and they are going to do so at the very least once every three months.

They are going to make whatever necessary changes, regardless of how minor they are. Using the information that is contained within the accounts, they expect to file tax returns as well as other official reports. In addition to this, they will provide firms with consultancy services of the highest calibre.

If you want your business to be successful, you absolutely must have both of these individuals. It is absolutely necessary for you to delegate your day-to-day work responsibilities to your bookkeeper. In addition to this, you would seek the services of an accountant to handle all of the necessary formal reporting and to offer you high-level business advice.

Reasons to Consider a Career in Bookkeeping

If you have only recently started considering a career in bookkeeping, there is a strong probability that you have some questions about the field. Keep reading if you want to gain an understanding of several of the advantages that are linked with choosing a career in bookkeeping.

Passionate Career

Someone who enjoys dealing with numbers and has the ability to succeed in this line of work would be a good candidate for a career in bookkeeping. Because of the tasks and duties involved, having a significant amount of patience and paying close attention to detail are prerequisites.

In light of this, there is no reason for concern despite the fact that you are not particularly good at juggling multiple responsibilities at once. In order to make your work accurate, bookkeeping frequently requires you to focus on just one financial situation at a time. This is done so that you can avoid being confused.

If you are the kind of person that gets along well with others, you might want to think about making a career out of bookkeeping. If you engage in day-to-day interaction with clients, you will be able to keep a close relationship with a significant number of different people.

If, on the other hand, you come to the conclusion that you are more of an introverted person, you should be aware that the subject of bookkeeping still offers a lot of opportunities for individuals like you to pursue. Because there are so many different things to do in this line of work, it is an ideal choice for people who have a diverse range of personality traits.

Experience in Bookkeeping

A significant number of people either acquire the fundamental bookkeeping skills as an integral part of their employment or by performing bookkeeping obligations while operating their own firm, both of which are excellent ways to get started in the field. As a result of the fact that many positions in the workplace already contain essential duties for bookkeeping, learning by doing is something that takes place rather frequently.

Everyone who works in general administration, such as a receptionist, an office administrator, or someone who works in a small firm with "all-rounder" tasks, has probably already done some basic accounting at some point in their careers. This could be because basic accounting is a skill that is required in a wide variety of administrative positions.

Documenting payments, processing receipts, and entering data into a computerised accounting system are a few examples of the many tasks that are included in bookkeeping. Some of these tasks, such as entering data into a computerised accounting system, may appear to be somewhat routine.

It's possible that many people's careers in the financial services industry got their start in this manner: first, they worked in an entry-level position; then, they gained exposure to bookkeeping; and, finally, they enrolled in a bookkeeping course in order to learn new skills and get a formal qualification. It's possible that many people's careers in the financial services industry got their start in this manner.

Contract Bookkeeping

The people who were already working in the finance industry identified a need that needed to be addressed, and contract bookkeeping emerged as an alternative for a profession at that time.

When it came time to finish their BAS, many small businesses found themselves in a difficult position because they were either unable to hire a book-keeper full-time or part-time or they lacked the financial means to hire a professional accountant to prepare their BAS. As a result, these businesses found themselves in a difficult position. In order to find a solution to this problem, they went looking for bookkeepers that they could employ on temporary contracts and pay at rates that were within their financial means.

In due time, the gap was filled, and all the while that gap was being filled, an ever-increasing number of people were participating in the unique practice. They began by enrolling in bookkeeping classes, then earned the relevant certificates, and finally registered as BAS agents in order to get paid for giving bookkeeping services to clients. After all, utilising the services of a contract bookkeeper brings with it a number of benefits.

Bookkeepers who work on contracts typically manage their small businesses remotely, either from their own homes or from workstations located in shared workplaces. This can be done either way. For this reason alone, it is an ideal choice of career for parents who wish to spend more time at home with their children, for young people who place high importance on having some degree of flexibility in their job, and for those who find working for another person to be too constraining.

Is it worth it?

If you are looking for a profession that pays well and provides you with good prospects for career advancement, then accounting is a career path that you should give serious consideration to pursuing. On the job market in Australia, bookkeepers typically earn an hourly wage that is normally somewhere in the neighbourhood of $25.38 on average. This figure is based on the national average.

The fact that the remuneration for bookkeepers does not differ much between those with little to no experience and those with a great deal of experience is the best aspect of it. Because there is also a lot of flexibility in the field, it is possible to take up part-time roles in other areas of consulting; however, this is only the case in the event that the policy of the organisation you work for does not preclude such arrangements from being made.

Despite the availability of a wide variety of accounting software programmes, there is still a large demand for human professionals to handle these programmes. Due to this feature, employment security in this sector is quite likely to be achieved.

Reasons to Consider a Career in Accounting

Flexibility

Having a job in the accounting industry provides you with the freedom to work whenever and wherever you want, providing you with greater flexibility. However, if you want to find work in some fields of employment, you might have to make some adjustments to your way of life and move to a place that has a strong industry in order to do so.

On the other hand, accounting is frequently an absolute necessity in each and every sector. The services of an accountant, analyst, or any other accounting professional could be beneficial to a wide variety of clients, ranging from farmers to organisations that develop software. This gives accountants and anyone else who works in the firm a lot of wiggle room in terms of deciding where they would like to settle down or go on vacation in the future.

Essential to Real Life

It is only natural that you would want to combine the large amount of information and experience that you have received via your school and your job into your day-to-day life. In fact, it is something that you should strive to do. Transferrable talents are those that may be utilised in a variety of settings and include the ability to monitor expenditures and compile reports, to name just two examples.

These necessary abilities may be beneficial in budgeting while selecting whether to buy that dream home or automobile, as well as in budgeting on a day-to-day basis. In addition, these fundamental abilities may be helpful in budgeting for large purchases.

It is beneficial to acquire current industry knowledge as well as an awareness of how businesses operate before making decisions that involve money. Some examples of such decisions include applying for credit cards, paying hotel taxes, or beginning your own business.

According to the findings of the S&P Global FinLit Survey conducted in 2015, only 33 per cent of people all across the world have a solid comprehension of financial concepts. If, on the other hand, you decide to make a living in the field of accounting, you will be light years ahead of the rest of the population in terms of your financial literacy.

Personal Growth

A career in accounting provides the opportunity to try out a variety of jobs within an organisation, which may lead to personal development in addition to the professional development that comes with accumulating a large number of experiences in the field. If you are interested in developing both your professional and personal potential, consider pursuing a career in accounting.

You might think of a career in accounting as being dull and centred solely on the processing of numbers, but in reality, the area covers a lot more than that. For instance, acquiring soft skills can start with something as basic as collaborating with a coworker and progress all the way up to taking part in a conversation about the department's finances with the entire staff.

Acquiring new skills and having exposure to a variety of fields of work might help you narrow down the options available to you in terms of your desired career path. This will not only help you become a more well-rounded employee but also a more well-rounded person overall.

Take advantage of the industry's strong growth and higher potential earnings

If you are a student from Australia or another country who is attending a school in Australia, there is a substantial degree of long-term career potential in the subject of accounting. This is true whether you are a student from Australia or another country.

According to the Job Outlook programme run by the Australian government, the industry today has the following:

• Strong growth in the years to come According to forecasts made by the Department of Employment, Skills, Small and Family Business, the term "future growth" refers to the anticipated increase in the total number of workers that will take place in comparison to all other occupations over the course of the next five years. Within the framework of the accounting industry, it has been deemed to be of "strong" quality.
• Gains in financial status that are noticeably above and beyond the norm: The average weekly pay for full-time workers is $1,460, so the average pay for adults working full-time and receiving an adult salary is approximately $1,660.
• The majority of individuals who are employed in accounting do so at full-time levels, which is significantly more than the percentage that is the national average. Rates of employment are more likely to be at full-time levels (80 percent ). (66 per cent).

Participate In A Resilient Industry

In spite of the disruption brought on by the COVID-19 epidemic, the accounting industry has shown an impressive capacity for coming back.

The revenue of the Top 100 Accounting Firms, as ranked by The Australian Financial Review Top 100 Accounting Firms list for 2020, increased by 5.6 per cent to reach $12.75 billion in the fiscal year that ended on June 30, 2019. This represents an increase from the previous year's total of $12.25 billion. In addition to this, nearly eighty of the top one hundred businesses had an increase in their annual revenue.

In the year 2020, there has been a large rise in the amount of compliance-driven accounting work in order to ensure the continuity of the company for the benefit of its clients. Both JobKeeper and the anticipated changes to the tax code contained in the federal budget are to blame for this development.

Graduate with a degree that is recognised across the world

Students from other nations who are interested in studying accounting will find that the educational institutions in Australia are among the greatest in the world. This is something that they will discover when they come to study in Australia. However, if you are a student interested in investigating your options for migrating, we strongly recommend that you talk with an agency that specialises in migration.

After graduating from an Australian university with a degree in accounting, international students can return to their home countries with the knowledge that they have an advantage over their counterparts working in the accounting area and can confidently move forwards in their accounting careers.

The Association of Chartered Certified Accountants (ACCA), Chartered Accountants Australia & New Zealand, and CPA Australia are the three accounting bodies that have granted industry accreditation to the Master of Accounting and Master of Professional Accounting programmes, as well as the Bachelor of Business (Accounting)* degree. In addition, these accounting bodies have also granted industry accreditation to the Master of Accounting and Master of Professional Accounting programmes (CA ANZ).

After you have successfully finished the course, you will be able to apply for admission into professional programmes such as those offered by CPA Australia, CA ANZ, and ACCA. These are just some examples.

If you have qualifications such as those offered by ACCA, you have the possibility to work in more than 120 countries, which paves the way for a career that takes you all over the world.

Getting a Job As A Bookkeeper Or Accountant

You are required to get the necessary certifications if you want a career in accounting or bookkeeping, whichever path you choose to pursue. In order to work as a bookkeeper, you are going to need to earn a formal qualification, such as a certificate IV or higher. In addition to this, you will need to possess professional qualifications as an accountant, preferably at the diploma level but no lower.

You will acquire the fundamental abilities necessary to launch a successful career in the exciting profession of accounting and bookkeeping by completing Open Colleges' FNS40217 Certificate IV in Accounting and Bookkeeping. You will have the opportunity to learn a wide range of abilities, including accounting and financial planning, bookkeeping, auditing, payroll processing, and many more.

You will receive memberships to the 'Australian Bookkeepers Network,' the 'Australian Bookkeepers Association,' and the 'Institute of Public Accountants' as a part of this study. In addition to this, you'll be given unrestricted access to the Reckon One accounting software.

If you are interested in beginning a career as an accountant or bookkeeper, what are you waiting for? The first thing you should do is find a reputable school to attend so you can hone the abilities you'll need to advance towards your ideal profession.

How Can The Certificate IV In Accounting And Bookkeeping Help You Decide?

If you are interested in a career in the financial services industry but are unsure whether you want to specialise in accounting or bookkeeping, then it may come as a relief to learn that the Certificate IV in Accounting and Bookkeeping course is a combination of accounting and bookkeeping qualifications. This course is ideal for students who are unsure which area of accounting or bookkeeping they want to pursue as a career.

Study Accounting and Bookkeeping Certificate to help you decide

If you have this certification, then you can confidently say that you can keep accurate books. You are also free to switch your area of specialisation if you discover that you would prefer to work in accounting while you are working as a bookkeeper.

The same is true if you planned to become an accountant at first but then changed your mind and wanted to become a bookkeeper instead.

If you are still unsure about the area of the financial services business in which you would like to specialise, this is the qualification that you should pursue to give yourself the most flexibility.

Now, don't get the idea that this class is solely for people who are struggling to make a decision on something. This is also the right course for you if you are already determined that you want to work in accounting or as a bookkeeper in the future.

Imagine the competency and training you will be able to have once you complete this course, as you will be taking units specialised in bookkeeping and accounting.

Bookkeeping vs. Accounting: FAQs

1. How Can a Bookkeeper Become an Accountant?

Bookkeepers are typically assigned with the responsibility of documenting or verifying the financial data of a firm or customer. This can include checks received or written, invoices, cost spreadsheets, and monthly or quarterly income. A bookkeeper is someone who is proficient in document keeping and who monitors a broad range of financial information.

If a bookkeeper wants to transition into the role of an accountant, they will need to pass the Certified Public Accountant test and, in most cases, they will also need to get a bachelor's degree if they do not already possess one.

2. Is Bookkeeping Hard to Learn?

It is not difficult to learn how to be a bookkeeper if you are punctual, organised, and have a strong attention to detail. If you are skilled and at ease with the use of mathematics and computing figures, it is even easier. As a new bookkeeper, having previous experience in accounting procedures will, of course, help you get over the initial hump of learning the ropes.

3. Which Accounting Jobs Are in Demand?

Comptrollers, accounting managers, senior tax accountants, and internal auditors are just few of the positions that are in high demand in the accounting industry.