Career Advice: Accountant or a Bookkeeper? What’s best for you?

Are you looking for a career in accounting or bookkeeping? This can be a difficult decision, especially if you don't know the difference between the two careers. In this blog post, we will compare and contrast accountants and bookkeepers so that you can decide which career is right for you.

We will also provide tips on how to become an accountant or bookkeeper. So, whether you are just starting in your career or are considering a change, read on for information on how to become an accountant or bookkeeper!

Do you know what the difference is between an accountant and a bookkeeper? If you're thinking about a career in accounting or bookkeeping, it's important to know the differences to choose the right path for you. In this blog post, we will explore the differences between accountants and bookkeepers, so you can decide which career is right for you.

Accountants are responsible for preparing financial statements and filing taxes. They typically have a four-year degree in accounting or a related field. Bookkeepers keep track of business financial transactions and may be responsible for reconciling accounts, recording payments, and preparing invoices.

They generally need only a high school diploma or equivalent. So, which one should you choose?

Let's get started!

Comparing the Roles of a Bookkeeper and an Accountant

Bookkeeping as a profession is intended to generate and record data regarding the financial activities and transactions of an organisation. This data may then be analysed and reported on. These include money spent, money received, sales made, and wages paid.

A bookkeeper is responsible for all of the tedious numerical work, right down to the nitty-gritty details. This is something that is anticipated from a bookkeeper more so than an accountant would be. The attention to detail must be of an exceptional calibre and nearly perfect.

Bookkeepers simply cannot afford to make careless or obvious errors in their work. Errors that, at the time, appear to be very minor and unimportant might, in the long term, lead to far larger issues and significantly higher costs.

On the other hand, accounting involves doing analysis on the information that is supplied by the bookkeeper. The work of an accountant is typically more advising and analytical than that of a bookkeeper, despite the fact that accountants are responsible for performing some bookkeeping activities as part of their role.

They are more concerned with taking a step back and looking at the "big picture" of the financial crisis facing a company. Accountants are frequently brought on board because of their capacity to offer sound financial counsel that contributes to the continued viability of the organisation over the course of time. The abilities to think logically and solve problems effectively are advantages that an accountant should possess.

Tax issues are also handled by the company's accountants to ensure everything runs smoothly. Therefore, in contrast to bookkeepers, accountants are the professionals who are most equipped to advise on the fulfilment of tax needs and the compliance with tax laws and regulations.

The Work of a Bookkeeper

The act of documenting and processing financial transactions, as well as the production of statements, are all vital services that a bookkeeper offers to firms.

Some bookkeepers are responsible for managing the general ledger, which is a record of all of the financial transactions that occur inside an organisation. On the other hand, other people work as accounting clerks, managing various responsibilities as part of a group.

They are responsible for checking receipts, preparing bank deposits, sending payments, and monitoring accounts that are past due. Bookkeepers are frequently expected to fulfil additional responsibilities, including the compilation and submission of business activity statements (BAS).

Bookkeepers handle duties such as:

• Managing and processing money dealings.
• Managing the company's payroll and benefits system.
• Keeping track of financial transactions and entering data, either through the use of specialised bookkeeping software like Quickbooks, or via the use of spreadsheets or databases.
• Keeping an eye on the flow of cash and the general ledger's credits and debits.
• Creating various financial papers, such as statements of revenue and balance sheets (including accounts receivable and payable).
• Comparing the records of financial transactions to the statements from financial institutions and credit card companies.
• A number of procedures pertaining to taxes, including the computation of GST and the filing of company activity statements.

1. How does the market operate?

Bookkeepers in Australia make a weekly wage of $1234 on average, with better pay available to individuals with more expertise in the field. The occupation is also anticipated to experience consistent increase in the years to come.

People who are skilled in bookkeeping are vital to the overall financial health of a wide variety of various types of firms. As a result of this, bookkeepers can be found working in a variety of industries, including the following:

• Professional, Scientific and Technical Services
• Construction
• Education and Training
• Retail

2. Competencies necessary for achieving goals

To be successful in the role of bookkeeper, you need to be thorough, meticulous, and have good attention to detail. You will also need to be very good at finding solutions to problems, have a mind that is analytical and well-organised, and have a natural passion for numbers and mathematics.

It is recommended that a bookkeeper have some technical competence and be proficient with at least the fundamental usage of computers, particularly spreadsheets and databases. This is due to the fact that the majority of accounting work is now completed digitally. Bookkeepers that are successful have the traits of patience and diligence, and they are dedicated to correctness and precision.

• Work practises that are methodical
• Meticulous attention to detail
• Numerical fluency
• Excellent organising skills
• Abilities in a technical field
• Good problem-solving skills

3. When is having accounting knowledge helpful?

Knowing how to store your books can be helpful in situations such as:

• You are interested in running your company: The majority of accountants work for themselves.

• You wish to be of assistance to the community in which you live: A great number of associations, societies, and organisations that do not earn from their activities rely on the bookkeeping services provided by volunteers.

• You'd like to improve your knowledge and abilities in financial matters: Those who have received instruction in bookkeeping will have the ability to create a budget and have a better understanding of their finances.

The Work Of An Accountant

Accountants are qualified financial professionals who may assist people or organisations with their financial records and accounting needs. They engage in a variety of tasks, such as reporting on and evaluating financial information, producing tax returns, and other pertinent documentation, and so on.

In addition to this, accountants carry out routine financial tasks and act as strategic advisers, assisting organisations in becoming more profitable as a result of their work.

As trusted experts, it is reasonable to expect accountants to conduct themselves in accordance with the highest ethical and professional standards.

One of the most important tenets of accounting is that the accountant must maintain objectivity at all times and must not let the undue influence, conflicts of interest, or bias of others cloud their professional or business decisions. Additionally, accountants are required to exercise the requisite level of effort and professional competence in order to guarantee that their clients are provided with suitable advice, even in situations in which the client has not specifically requested assistance.

Bookkeeping is driven by processes, such as ensuring that critical transactions take place successfully on a daily basis. Accounting, on the other hand, is more analytical. It entails summing up and evaluating the financial information of a company in order for the management to understand the company's status and be in a position to make key choices.

Accounting professionals perform duties such as:

• Putting together financial accounts and making projections about an organization's future performance in order to present them to boards of directors, managers, and shareholders.
• Performing tax return preparation for both individuals and businesses.
• developing budgets and procedures for accounting according to the requirements of various business and tax rules.
• Providing taxes and financial advice that is customised to the financial status of a firm, including advise regarding business plans and business structures, in order to assist in informing business decisions and identifying business requirements is one way to define business needs.
• Auditing is the process of conducting an impartial examination of financial reports for an organisation as well as reports indicating compliance with regulations by businesses.

It's possible that some of these jobs, like evaluating cash flow, working with financial data, and preparing financial papers, will overlap with bookkeeping duties in some way.

1. Principal responsibilities and obligations of an accountant

• Investigate both the costs and the revenues of the institutions.

• Contribute to the process of formulating policies on accounting and the budget.

• Maintain a level of sensitivity towards the effects of language and culture.

• Uphold the integrity of the internal control systems.

• Conduct an analysis of the investment projects' potential financial risks and cash flows.

• Advice on taxation and finances pertaining to business ideas, structures, and operations should be provided.

• Organise and present the company's financial statements to management, the board of directors, management, shareholders, and other statutory and governing organisations.

• Assemble and submit tax returns for a variety of clients, including individuals and organisations.

• Establish and continue to maintain the accounting systems.

• Help with the implementation and decision-making process with the use of computerised accounting systems

• Establishing a relationship with various financial professionals, such as brokers and bankers, will allow you to make arrangements for the handling of funds.

• Perform audits, carry out financial investigations, and provide advice and reports on the sale and purchase of enterprises, insolvency, finance, and taxation, as well as on matters involving suspected fraud.

• Ensure that the facts contained in financial reports comply with all regulatory standards pertaining to correctness and authenticity.

In general, persons who are very organised and are comfortable working with numbers are the best candidates for accounting jobs. Accountants are required to work with a large number of individuals, thus it is essential for them to have strong communication skills and the ability to connect with others.

2. How does the market operate?

A week's pay for an accountant in Australia is typically around $1660, and this number rises as the accountant gains more expertise. Therefore, a significant amount of growth in the sector's future is anticipated.

The vast majority of accountants are employed by accounting companies; nevertheless, in-house accountants may be necessary in a variety of businesses.

As an accountant, you will have the opportunity to work in a variety of settings, such as retail establishments, accounting firms, financial companies, sporting organisations, real estate firms, government organisations, taxation consultancies, banks and building societies, and community service organisations, among other places.

The majority of the time, accountants choose to either work independently or in partnerships with other accountants. Consider taking on one of the following accounting-related positions:

• Tax Accountant

• Chartered Accountant

• Management Consultant

• Actuary

• External auditor

• Data Analyst

• Chief Financial Officer

• Forensic Accountant

• Banker

• Stockbroker

• Economist

• Business Development Manager

You may even work for a huge company as its Chief Financial Officer (CFO), which is an in-house position. Working as the Chief Financial Officer of an organisation will provide you the opportunity to delve more deeply into the company's financial records and to make day-to-day decisions that have a beneficial effect on the bottom line.

In addition, you have the option of pursuing compliance and auditor responsibilities, which will enable you to acquire a technical understanding of the legislation and ensure that other businesses are operating in accordance with all applicable regulations. In order to be effective in these professions, you need to have an excellent attention to detail and the ability to quickly comprehend the business.

After gaining experience in the field for some time, one of the accounting career paths available in Australia is to work in an advising capacity. You will be able to gain an understanding of what firms do and how they grow, which will in turn make it possible for you to offer guidance on the same topic.

You can grab other opportunities like stockbroking, banking, management consulting, and more — the possibilities are simply endless. In general, the accounting industry offers a high level of job stability and a variety of work opportunities.

3. Competencies necessary for achieving goals 

Accountants have a diversified and complex function to play, and as a result, they require a wide range of abilities in order to carry out the activities that are expected of them on a daily basis. In Australia, becoming a competent accountant requires a number of talents, including the following:

• Communication Skills: If you want to have a successful career in accounting, it is absolutely necessary to possess strong communication skills. It is possible that your job as an accountant will require you to communicate with clients, other members of your team, and even government organisations.

• Critical Analysis and Problem Solving: To be able to analyse or evaluate a set of data or a circumstance and arrive at a reasonable conclusion is an important talent for accountants to have.

If you are able to use your accounting skills to find solutions to problems that arise in a company, you will increase your chances of being promoted once you begin working as an accountant.

• Organisational Skills: As an accountant, having abilities that are particularly good in the area of organisation can be of tremendous use to you throughout your career.

You would have a short amount of time to develop quick responses to complex requests and deal with conflicting demands on limited resources. Both of these tasks would need to be completed in a timely manner. Therefore, remaining one step ahead of the competition will allow you to make fewer mistakes in your career and live a life that is free of worry.

• Presentation Skills: Developing your skills in Microsoft Excel is a fantastic place to begin if your career goal is to become an accountant. You will be required to make use of a financial analytics tool or database in the majority of accounting roles.

Learning everything there is to know about Microsoft Excel will give you a strong foundation on which to build your understanding of the various sorts of interlinked information, formulas, and data that you will come across in your line of work.

In addition, it is possible that your superiors would require you to present your findings or financial reports to them. In this scenario, becoming knowledgeable about various presentation tools such as Powerpoint and understanding how to use them will be beneficial to your career as an accountant.

• Ethics: Even if their company pressures them or instructs them to purposefully break the law, accountants are not allowed to do so. When you work as an accountant, your allegiance is not solely to the company but also to the community. As a result, you are obligated to report and complete the other work in an ethical manner. When you begin your training to become an accountant, this will most likely be one of the first things you learn.

• Discretion: You will be need to deal with a significant amount of sensitive material in your role as an accountant. The vast majority of the things that accountants typically work on are, to varying degrees, subject to confidentiality requirements.

Your firm will entrust you with nearly all of its valuable information, and it is your responsibility to guarantee that this information will always be secure. On the other hand, if you are the type of person who likes to fill others in on every tiny aspect of their day-to-day work, this position is probably not the best fit for you.

• Teamwork: Accountants collaborate with one another in practically every organisation of a medium or big size. As a result, it is absolutely necessary to get along well with your coworkers and avoid producing significant conflicts. This factor will play an additional role in determining how long you will remain in any posture.

4. What level of education and experience are necessary to become an accountant in Australia?

A bachelor's degree in accounting is required in order to become a member of any of the three professional bodies in Australia that are responsible for the accreditation and regulation of the accounting industry.

Courses leading to a bachelor's degree typically take three years and can be taken by anyone older than 17 who has completed their high school education and earned the requisite UAI (Universities Admission Index).

The following is a list of the educational prerequisites that must be met in order to work as an accountant in Australia:

• Pursue a bachelor's degree in accounting, which might be a Bachelor's of Accounting and Finance or just a Bachelor's of Accounting. Another option would be to study accounting and finance together.

• You could even complete your education with a Master's degree. You may, for instance, earn a Master of Professional Accounting, which is a degree that can be completed in just two years by individuals who already have prior academic qualifications.

• You have the ability to submit an application to become a member of an established accounting organisation such as CA ANZ (Chartered Accountants Australia and New Zealand). You also have the option of enrolling in a CPA (Certified Public Accountants) programme by registering for one online.

5. When is having knowledge of bookkeeping useful?

Training in accountancy can be advantageous in situations other than working as an accountant, such as when:

• You have an interest in starting your own small business, which means you are already familiar with how businesses function and are able to get up to speed quickly when it comes to handling cash flow and keeping business records.

• You have an interest in consulting, correct? People who have a background in accounting are in high demand as consultants. This is due to the fact that accountants understand taxation and regulatory regulations, as well as business structures and accounting systems.

• If you are interested in travelling, you should know that accountants can find work in virtually any country in the world. However, the laws and customs of each nation are unique, and you will need to modify your work style accordingly.

• You have a passion in learning that continues throughout your life: It is necessary for accountants to participate in ongoing training in order to maintain their professional certification and be up to speed with the latest legislation developments.

• You're drawn to the concept of high management positions: Accountants are frequently the starting point for careers as Chief Financial Officers and Financial Controllers.

Advice for Aspiring Australian Bookkeepers

Bookkeepers are accountable for the upkeep of a firm or company's financial records, the monitoring of transactions, the updating of accounts and the verification of their accuracy, as well as the production of financial statements and other reports for management and other supervisors.

Bookkeepers are responsible for recording information from receipts, invoices, and bills through the use of accounting software, spreadsheets, and databases in order to make reports and compile data. They will also frequently be assigned extra responsibilities, such as purchasing, payroll, and invoicing, and they may be required to deal with customers on occasion.

Bookkeepers are sometimes called upon to generate Business Activity Statements (BAS) and submit them to the relevant tax authorities in order to comply with legal requirements. This necessitates registration with the Tax Practitioners Board as a BAS Agent and will boost the career opportunities available to any and all bookkeepers.

Do things like spreadsheets, databases, and numbers calm you down? Do you find that following rules and procedures gives you a sense of accomplishment? Then, if you do what's outlined here, you can become a bookkeeper.

Step 1: Finish your certificate programme

The completion of a bookkeeping or accounting course leading to a certificate of completion level IV or higher is the initial requirement for becoming a bookkeeper.

You will learn how to manage records, interact with several accounting systems, and produce reports through the course of this. In order to submit an application for BAS Agent registration, it is also advised that you finish the GST and BAS modules included in the certificate courses.

Step 2: Get experience working

After you have earned your Cert IV certificate, you will possess the fundamental abilities necessary to apply for bookkeeping employment; however, you will not be able to do work linked to BAS until you have earned additional qualifications.

To legally be able to prepare and lodge Business Activity Statements, you will be required to complete 1400 hours of relevant work experience. Therefore, you should start knocking on doors to find a registered BAS Agent that you can learn from, either as a volunteer, an intern, or an intern entry-level intern bookkeeper.

Step 3: Become a BAS Agent

You are now eligible to submit an application to the Tax Practitioners Board in order to become a registered BAS Agent given that you have the expertise and knowledge necessary to establish your familiarity with GST and BAS procedures. A qualification as a BAS Agent will significantly boost your employment chances, despite the fact that it is not required for a profession as a Bookkeeper.

Step 4: Purchase insurance

After you have completed the necessary training and have been accepted into the BAS Agent programme, you will be expected to adhere to a code of professional conduct.

One of the requirements that must be met to comply with this regulation is to carry a particular amount of Professional Indemnity (PI) Insurance coverage at all times. This insurance protects bookkeepers against financial losses sustained by their customers as a result of mistakes or carelessness on the part of the bookkeepers.

How to Get Your Foot in the Accounting Door in Australia

The first thing you need to do if you want to work as an accountant in Australia is to educate yourself about the field of accounting, become conversant with the business world, and find out more about the duties that will be required of you in the role.

You have several options available to you if you do not feel that you are ready to embark on the journey towards earning a bachelor's degree in accounting, including the following:

1. FNS40615 Certificate IV in Accounting

The Certificate IV in Accounting will equip you with the knowledge necessary to apply fundamental accounting principles to the work that you do as an accountant. This provides you with further assistance in the preparation of financial reports, high-level budgeting, and ledgers.

You can also learn how to do actions that are relevant to business activity statements, as well as gain other skills that are transferrable, such as how to prepare business documents and presentations, as well as how to run a payroll system.

This certificate is a fantastic initial step towards becoming an accountant in Australia as it will prepare you for the profession of Accounting Support Officer or a Bookkeeper.

2. FNS40215 Certificate IV in Bookkeeping

The primary goal of the Certificate IV in Bookkeeping qualification is to equip you with a solid foundation of knowledge in fundamental corporate financials and the maintenance of financial records.

This certificate is ideal for individuals who are interested in beginning their own small business as well as entering the accounting profession.

The preparation of interim reports and financial statements, payroll and accounting systems, and ensuring that you employ the most effective procedures and best practises applicable to bookkeeping methods are the primary focuses of the courses that make up this certificate.

3. FNS50215 Diploma of Accounting

The accounting courses required for the diploma are far more complex and in-depth than those required for the certificate level.

You will learn how to give financial or business performance information, manage budgets, as well as compile tax paperwork and financial predictions if you take such courses. In addition, you will obtain abilities at a higher level.

Earning a certificate or diploma in accounting is a great first step in having a successful career in accounting. It will provide you with the training and credentials necessary to work as a supervisor in the financial industry or to get a job as an assistant accountant.

Pursuing a Profession in Accounting and Bookkeeping

The fields of accounting and bookkeeping are both expanding and becoming increasingly exciting. However, due to the fact that all companies, regardless of their size, are required to keep financial records and manage their money, there will never be a shortage of demand for accounting and bookkeeping services.

The importance of the service sector in the Australian economy is growing. In the next 20-30 years, we will witness a significant increase in the number of individuals engaging in knowledge-based jobs as opposed to manual labour. For instance, the skills possessed by accountants and bookkeepers are transferrable between different businesses all over Australia. Because of this, each month hundreds of accounting and bookkeeping jobs are posted online for potential candidates to apply to.

To have more control over your workload, more flexible working hours, and more time to spend with your family, you can consider opening your own bookkeeping business or working for a franchise that already exists.

Another possibility is that you are approaching retirement and wish to reduce the number of hours that you work at your full-time job. Bookkeeping is a highly gratifying job because it equips individuals with the abilities necessary to assist others in comprehending the health of their company.

In addition, the courses can equip anyone who is interested in ultimately realising a dream of beginning their own business, regardless of what kind of business it may be, and regaining control of their financial situation.