Bookkeeping and accounting are two different (but very closely related) professions. Because some of the tasks and duties overlap, they’re sometimes talked about interchangeably. Often, small business owners aren’t quite sure whether they need an accountant or a bookkeeper to help out with financial recordkeeping and administration.
In this quick guide, we’ll look at the difference between accountants and bookkeepers – and what that might mean for your career choices.
Bookkeepers’ responsibilities
A bookkeeper is responsible for recording and managing the financial transactions of a business to ensure everything is accurate and up-to-date. They handle tasks like recording income, expenses, and payments, as well as managing invoices and receipts. Many bookkeepers also process payroll, ensuring employees are paid correctly and superannuation is calculated and lodged properly.
Bookkeepers often use accounting software like MYOB or Xero to track finances and prepare reports for business owners or accountants. They also make sure the business complies with Australian tax laws, including preparing BAS (Business Activity Statements) for GST reporting. A bookkeeper’s work helps business owners meet their legal obligations and make informed financial decisions.
Accountants’ responsibilities
An accountant is responsible for helping individuals and businesses manage their finances and meet legal requirements. They prepare and review financial reports, analyse data to give advice on budgeting and financial planning, and ensure taxes are calculated and lodged correctly.
Accountants help businesses comply with Australian tax laws, including GST, income tax, and payroll tax, and may assist in preparing BAS. They often work with bookkeepers to ensure records are accurate and complete.
Accountants also provide advice on reducing costs, improving profits, and planning for the future, such as growing a business or managing debts. Their work is important for helping people make smart financial decisions and meet their obligations under Australian law.
Should you become an accountant or a bookkeeper?
Job descriptions are handy, but they’re only part of the equation when it comes to choosing a new career path. Here are a few more key factors you might want to consider.
Salary
The average bookkeeper salary in Australia is $75,839 per year (full time) at the time of writing. Entry level positions start at $67,500, and experienced senior bookkeepers can make up to $95,000.
In contrast, the average accountant salary in Australia is $95,000. However, there’s also a bigger range. Entry-level or graduate junior accountant salaries start at $62,500, while experienced senior accountants can make about $113,325.
These figures vary even further when you consider self-employed and owner-operator bookkeepers and accountants.
Clients and projects
An accountant can perform tasks that a bookkeeper cannot, such as providing financial analysis, strategic advice, and tax planning. While bookkeepers focus on recording transactions and maintaining accurate financial records, accountants use this information to help clients make decisions about budgeting, tax strategies, and long-term financial planning. Accountants can also prepare and lodge tax returns, ensure compliance with complex tax laws, and provide advice on business structure and risk management.
Because of these advanced responsibilities, accountants often work with a wider variety of clients, including individuals, small businesses, large corporations, and non-profit organisations. They may take on diverse projects like helping a client reduce their tax liability, guiding a start-up through its financial setup, or assisting a company in planning for expansion. This broader scope means accountants are involved in more strategic, high-level financial matters compared to the day-to-day record-keeping tasks handled by bookkeepers.
Job prospects and future opportunities
The official government stats show that there are over 206,000 accountants employed in Australia, with expected annual employment growth of 2,500. Compare that with bookkeepers (95,000 employed, and -1,100 growth) and the winner seems obvious. Then there’s the fact that only accountants – specifically not bookkeepers or clerks – are currently included in the government’s skilled occupation shortage list. Depending how you make decisions, that might be enough evidence for you. Especially if your goal is to work for a larger firm or a governmental organisation.
What these numbers don’t take into account are changes in the way we work.
Several projections from Australia and around the world indicate that there will be a higher demand than ever in future for qualified and accredited bookkeepers. There are several factors driving this. One is technology; cloud-based software allows bookkeepers to handle larger volumes of transactions, and provide real-time insights through analytics. Another is regulation; changing regulations may mean fewer business owners are confident doing their own books. Some market research discusses an increased demand for customised, niche services; solo operators or small bookkeeping firms may be more flexible, agile, and able to meet these needs. Then there’s the retirement factor. Going back to those government stats, the median age of bookkeepers is 51 (compared to 41 for accountants). The mean (average) age of bookkeepers is also higher than that of accountants. This means a much higher percentage of them are more likely to retire sooner, leaving vacancies behind.
There’s also the fact that many small business owners are asking themselves “do I need an accountant, or a bookkeeper?”. Depending on the nature, complexity and maturity of their business, owners may not need accountants – at least not all year round. They may be more likely to need the regular assistance of a bookkeeper.
Work-life balance
In Australia, bookkeepers often enjoy greater flexibility in their work-life balance compared to accountants. Many bookkeepers work part-time, with a significant number offering their services remotely. This allows them to manage professional responsibilities while balancing personal commitments, making bookkeeping an attractive career for those seeking flexible hours or the ability to work from home.
Accountants, while also having some opportunities for remote and part-time work, generally face more structured schedules. Their workload tends to increase during busy periods such as tax season or the end of the financial year, which can impact work-life balance. However, accountants may also benefit from growing remote work options, particularly in roles focused on financial analysis and advisory services.
Overall, the nature of bookkeeping lends itself to greater work-life flexibility, while accountants often deal with higher workloads but have access to more diverse career opportunities across industries.
Explore the differences
Want to know more about the differences between these two careers? Check out some of the other pieces we’ve written before:
- What is a bookkeeper?
- What does an accountant do?
- Which accounting or bookkeeping course is right for me?
If you’re starting from scratch, the Certificate IV in Accounting and Bookkeeping keeps your options open. With this qualification, you can start working as a bookkeeper, or get a shortcut (course credit) to continuing your studies in accounting.
Still not sure whether you want to be a bookkeeper or an accountant? No worries – book in to chat to one of our friendly Course Consultants at a time that suits you. They’ll discuss your options and help you work out which course is the right fit for your career goals.
