If you are a budding entrepreneur who is focused on the big prize, accounting is hardly going to be at the forefront of your mind, yet it is a necessary evil. Without an accurate record of your business transactions, you will have no idea how the company is performing, and you will no doubt be familiar with the terms, ”accountant”, “tax agent” and the trusted “bookkeeper.”
While they are all related to your business records, each has specific areas it focuses on, and with that in mind, here is a brief explanation of the roles of these professional positions.
The accountant’s primary role is to oversee a business’ accounts. Such is the complexity of crunching the numbers, that there are different types of accountants.
- Tax Accountants
- In-House Accountants
- Management Accountants
- Cost Accountants
The list is indeed long, and one could say that both the tax agent and the bookkeeper practice accounting, which might sound confusing. The tax agent is an accountant who chose to study the complex tax laws and is, therefore, able to help businesses navigate the mysterious waters of taxes.
The Tax Agent
As mentioned above, the tax agent is a specialist accountant, and much like an eye surgeon would only operate on eyes, the tax specialist works for clients that have multi-national corporations, dealing with the complex taxation treaties there are between many nations. Failing to understand foreign tax laws could land you in serious trouble.
Some would say, the bookkeeper is the nurse of the accounting world, paying bills and processing payrolls, and many trainee accountants begin with the ledgers and spreadsheets, eventually offering Sydney small business bookkeeping service, something that is in high demand. For a small business, an experienced bookkeeper is all you need, and as your empire grows, you would bring in someone with extensive medium level business experience.
While these three professions do differ, all are able to manage a small business, and it is the bookkeeper who takes care of local enterprises. If you are soon to start a business, you really need to see a bookkeeper at the earliest opportunity, as she will set you a routine, which would be daily. Entering expenses and income data into relative spreadsheets at the end of every day will pay dividends, and by numbering all your receipts, it is easy for the bookkeeper to do her work.
There are articles you can find online such as beginner’s guide to accounting, which will help you to grasp the concepts and can help in a practical way.
Keeping Your Finger On The Pulse
There are a few businesses who fail in the first year primarily because they kept no real records and consequently, with no firm direction, things will crumble from the inside. Running a business is all about money, and money is expressed in figures, and by setting off on the right foot, keeping records will soon become second nature.
Those with big dreams prefer to focus on getting a product to the customer and leave the number crunching to the pros, and if you are fostering a great business idea, factor in a good bookkeeper, and you’ll be very glad you did!