Do I Need a Bookkeeper or an Accountant?

Understanding the Roles

What a Bookkeeper Does...

A bookkeeper is your day-to-day money manager. Think of us as the people who keep your financial engine running smoothly. Here are some key tasks:

• Recording daily transactions

• Invoicing and reconciling payments

• Managing accounts payable and receivable

• Running payroll and keeping on top of leave entitlements

• Preparing GST returns and ensuring you remain IRD compliant

  
  

Bookkeepers make sure your financial data is up to date, accurate, and ready to use.

What an Accountant Does...

An accountant takes the data a bookkeeper prepares and looks at the bigger picture. Their work usually includes:

• Preparing annual financial statements

• Filing income tax returns

• Advising on business structure and tax planning

• Analyzing financial reports for strategy and growth

• Helping with funding or investment decisions

  
  

Accountants help you make sense of the numbers so you can plan for the future.

How They Work Together...

Here’s the good news: you don’t have to choose one or the other. Bookkeepers and accountants complement each other perfectly.

👉 Bookkeepers keep the financial records accurate and up to date.

👉 Accountants interpret those records and provide strategic advice.

Having both means you get reliable day-to-day operations and expert guidance at year-end. This combination can significantly enhance your business's financial health.

When to use a Bookkeeper vs an Accountant

When to Call a Bookkeeper...

You should reach out to a bookkeeper when you find yourself drowning in admin tasks. If you’re missing GST deadlines, need payroll done properly, or require help with other day-to-day admin tasks, a bookkeeper is your go-to.

When to Call an Accountant?

On the other hand, you should consult an accountant when you need big-picture advice. This includes tax minimization strategies or planning major changes like hiring, expansion, or purchasing assets.

The simple way to look at it is this: bookkeepers keep you running, while accountants help you grow. Most successful businesses benefit from both at different times, often throughout the year.

The Benefits of Having Both

Having both a bookkeeper and an accountant can provide numerous benefits for your business. Here are a few:

1. Accuracy: Bookkeepers ensure that your financial records are accurate and up to date. This accuracy is crucial for accountants to provide reliable advice.

   
   

2. Time-Saving: By delegating day-to-day financial tasks to a bookkeeper, you free up your time to focus on growing your business.

   
   

3. Strategic Planning: Accountants can help you devise strategies for growth based on the data provided by your bookkeeper. This collaboration can lead to better financial decisions.

   
   

4. Stress Reduction: Knowing that both your bookkeeping and accounting needs are taken care of can significantly reduce financial stress. You can focus on what you do best—running your business.

   
   

5. Compliance: With both professionals on your side, you can ensure compliance with all financial regulations and tax obligations. This reduces the risk of costly penalties.

   
   

If you’re ready to take the stress out of your books, let’s talk. I can manage the day-to-day stuff and work alongside your accountant to keep your business on track.

By understanding the distinct roles of bookkeepers and accountants, you can make informed decisions that will benefit your business. Whether you need help with daily transactions or strategic planning, having the right support is essential for your success.

Ciara Kelly, The Office Fairy

📩 info@theofficefairy.nz