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FAQs about Bookkeeping and Accounting

There are tons of questions every bookkeeping and accounting service provider has to answer. From very childish to very twisted and turned all sort of questions makes their way to the inbox. Hats off to those who patiently answer each one of them no matter they like it or not. The most interesting thing about those questions is that they give you a window to know where the knowledge of people stands about bookkeeping and accounting. Even more interesting are the questioners who are curious about the basics. Many don’t even know what bookkeeping and accounting are. Whereas, many others know the literal work but are not aware of the details.

Following is a list of frequently asked questions. Go through them and you will add much more to your knowledge.

FAQ#1: Why do I need bookkeepers and accountants? They will bring your business on track. You will never lose track of your money. Every bank transaction, monthly/yearly cash flow, and financial reports will be a click away from you. Your business is summed up in one go. Once you have all the financial details of your business you will always be able to make smart moves for it.

FAQ#2: How do I know if the bookkeeper and accountant are being dishonest? Do you do a detailed study of your financial report? Do you go through your bank balance figures every day or every week? Do you ask for financial statements from your bookkeeper and accountant? If the answer to any of these is a ‘No’ you are or going to be in trouble. Do you receive unclear reports? Is there a complaint about late payments and missed payrolls? DO you no longer get emails or daily visits from your bookkeeper in your office? If the answer to these is a ‘Yes’ then you are surely in trouble.

FAQ#3: I have a small business. Do I need it too? Since your business is still a bud and has not fully groomed, it needs lots of attention. You have to lose a good amount of money or have confused figures in your bank balance. You definitely need a bookkeeper and accountant. They will keep a check on your investments, profits, loss, and revenue and financial statements giving you a clear view of what you should do next.

FAQ#4: What is the difference between bookkeeping and accounting Many people confuse bookkeeping with accounting. There is a slight difference between the two. Bookkeepers are bound to do a detailed analysis and understand the company’s progress by the figures in front of them. Then they advise the owners to move accordingly. Accountants make sure that there is no obstacle in taxation procedures.

FAQ#5: I have multiple businesses. Do I need to hire separate bookkeepers and accountants for each? No, not really. Actually, it depends on you. If there is no margin of mistakes and you can afford then go for multiple bookkeepers and accountants. However, one bookkeeper and accountant can handle your multiple businesses. Although the workload will be high on them you can pay them well so they can stay focused on their jobs. All the businesses can be connected together so that all the financial reports are in front of you in one go.

FAQ#7: What are the responsibilities of bookkeepers and accountants? One thing is for sure; both of them have too much to do other than sticking to digits only. All aspects revolve around numbers and mathematics but they prove to be helpful when making new decisions. They are good advisors.We are sure you found some intriguing answers to your questions as well.

For more info visit : https://novaaccountants.com.au/

Nova Accountant. Tax consultant, Australian Accountant.