If you’re a small business owner, sole trader, or entrepreneur in Australia, you’ve likely asked yourself: “Do I need a bookkeeper, an accountant, or both?” It’s a common question—and an important one.
Understanding the difference between a bookkeeper and an accountant can save you time, money, and stress. Each plays a vital role in your business’s financial health, and when used effectively, they complement one another to keep your business running smoothly.
In this guide, we’ll break down what each professional does, when you should hire them, and how they can work together to support your business.
Why This Matters
Many Australian business owners make the mistake of:
- Overpaying an accountant to fix poor bookkeeping
- Attempting to do it all themselves (leading to costly errors)
- Hiring one professional when they actually need both
This article is here to help you avoid those pitfalls—and gain clarity on the bookkeeper vs. accountant debate.
What Does a Bookkeeper Do?
A bookkeeper is responsible for the daily financial operations of your business. Think of them as the person who keeps the financial engine running smoothly. Here’s what a qualified bookkeeper can do:
Day-to-Day Responsibilities
- Enter financial transactions (sales, expenses, etc.)
- Reconcile bank and credit card statements
- Process invoices and payments (accounts receivable/payable)
- Run payroll and manage employee entitlements
- Track GST and prepare Business Activity Statements (BAS)
- Maintain your accounting software (Xero, MYOB, QuickBooks)
- Provide basic financial reports (profit and loss, cash flow)
BAS Agent Services
Many bookkeepers in Australia are also registered BAS agents, which allows them to:
- Lodge BAS and IAS with the ATO
- Handle PAYG withholding
- Ensure GST compliance
📌 Key takeaway: Bookkeepers keep your financial data accurate and up to date, enabling better decision-making and ATO compliance.
What Does an Accountant Do?
An accountant provides high-level financial services and strategic advice. They analyse the financial data your bookkeeper maintains and use it to:
Core Responsibilities
- Prepare and lodge business and personal tax returns
- Offer tax planning and deductions advice
- Provide financial strategy and forecasting
- Help with business structure setup (sole trader, company, trust)
- Create end-of-year financial statements
- Assist in loan and finance applications
- Represent you to the ATO (if a registered tax agent)
Qualifications to Look For
- CPA (Certified Practising Accountant)
- CA ANZ (Chartered Accountant)
- IPA (Institute of Public Accountants)
- Registered Tax Agent with the Tax Practitioners Board (TPB)
📌 Key takeaway: Accountants help you make sense of your business’s financial picture and ensure you’re not paying more tax than necessary.
Bookkeeper vs. Accountant: Key Differences
| Feature | Bookkeeper | Accountant |
|---|---|---|
| Focus | Day-to-day financial transactions | Strategic financial analysis & tax |
| GST/BAS | Prepares & lodges (if BAS agent) | Reviews and oversees compliance |
| Payroll | Handles payroll processing | Advises on PAYG obligations |
| Tax Return | ❌ Not allowed to lodge | ✅ Can prepare and lodge |
| Software Management | Xero, MYOB, QuickBooks setup | Integrates with reports & forecasts |
| Financial Statements | Prepares basic reports | Prepares official end-of-year reports |
| Professional Certification | Optional (BAS agent for lodgement) | Required (CPA, CA ANZ, IPA) |
| ATO Representation | ❌ Not permitted | ✅ If registered tax agent |
When to Hire a Bookkeeper
You should consider hiring a bookkeeper if:
✅ You’re Spending Too Much Time on Admin
Manual data entry, chasing invoices, and payroll management can eat into your day. If admin tasks are taking time away from growing your business, it’s time to delegate.
✅ Your Books Are Behind or Inaccurate
If your bank accounts don’t match your accounting records or you’re unsure of your financial position, a bookkeeper can restore order.
✅ You’re Registered for GST
GST-registered businesses are legally required to submit accurate and timely BAS reports. A BAS-registered bookkeeper can ensure this is done correctly.
✅ You’re Hiring Staff
Payroll processing and superannuation calculations can be complex. A bookkeeper can manage it all and keep you compliant.
✅ You Use Accounting Software (or Want To)
Bookkeepers are often certified in platforms like Xero, MYOB, and QuickBooks. They’ll set up your software correctly and train you to use it.
📌 Bonus Tip: A good bookkeeper pays for themselves by keeping your accountant’s workload lighter—and your compliance tighter.
When to Hire an Accountant
You should engage an accountant if:
✅ You’re Starting a Business
They’ll advise on the best business structure for asset protection, tax minimisation, and future scaling.
✅ You Need Help With Tax
Whether you’re a sole trader or a company director, an accountant ensures your returns are lodged correctly and your deductions are optimised.
✅ You Want to Reduce Your Tax Legally
Tax planning is an accountant’s specialty. They’ll advise you on strategies to reduce your taxable income, such as asset depreciation or super contributions.
✅ You’re Planning for Growth
Forecasting, budgeting, and funding advice can mean the difference between stagnation and scale. An accountant brings the strategic insight needed.
✅ You’ve Been Contacted by the ATO
Don’t go it alone. Accountants can represent you in audits, disputes, and correspondence with the ATO.
When You Might Need Both
Many successful businesses engage both a bookkeeper and an accountant—and for good reason. Here’s why:
👥 Complementary Strengths
- The bookkeeper handles data and day-to-day accuracy
- The accountant provides analysis, advice, and compliance
📈 Seamless Financial Operations
- Up-to-date records mean fewer headaches at tax time
- Accountants rely on accurate data to generate useful reports and projections
💸 Cost Efficiency
Using a bookkeeper for routine work frees your accountant to focus on higher-level strategy (which typically commands a higher hourly rate).
How a Bookkeeper Supports the Accountant
Here’s how these two professionals can work together effectively:
🔄 Monthly and Quarterly Support
- The bookkeeper handles data entry, reconciliations, and payroll
- The accountant uses this clean data to advise on tax, strategy, and reporting
🧾 End-of-Year Preparation
- The bookkeeper closes the books and provides detailed ledgers
- The accountant prepares financial statements and lodges tax returns
📊 Ongoing Compliance
- The bookkeeper ensures GST and BAS are accurate
- The accountant ensures all ATO obligations and business structures are compliant
Hiring Tips: Choosing the Right Professional
What to Look for in a Bookkeeper:
- BAS Agent registration (if applicable)
- Software certification (e.g. Xero Advisor Certified)
- Small business experience
- Clear service scope and pricing
- Good communication and attention to detail
What to Look for in an Accountant:
- Registered Tax Agent with the TPB
- CPA, CA ANZ, or IPA certified
- Industry-specific experience (retail, hospitality, trades, etc.)
- Transparent fees and engagement terms
- Proactive with communication and insights
📌 Always check registration status with the Tax Practitioners Board.
Using Finistry to Find the Right Fit
Finistry is Australia’s independent directory for financial professionals. Whether you’re looking for a bookkeeper, an accountant, or both, Finistry makes it easy to:
- ✅ Search by postcode and service type
- ✅ View verified listings with qualifications and reviews
- ✅ Compare professionals side-by-side
- ✅ Connect directly—no middlemen or platform fees
Conclusion: Know Who You Need—And When
Hiring the right financial professionals at the right time is one of the smartest things you can do for your business.
Quick Recap:
- Bookkeepers manage daily financial records, payroll, invoicing, and BAS
- Accountants handle tax returns, strategic advice, compliance, and reporting
- Many businesses benefit from using both to stay organised and grow confidently
Don’t wait until tax time—or worse, until you’re in financial trouble—to get help. Whether you’re a solo freelancer or a growing SME, expert financial support can make all the difference.
💼 Are You a Bookkeeper or Accountant?
Get Discovered on Finistry – Australia’s Independent Financial Services Directory
If you’re a registered BAS agent, bookkeeper, or accountant in Australia, Finistry helps you:
- ✅ Build your profile and showcase your expertise
- ✅ Get found by clients searching “bookkeeper near me” or “small business accountant”
- ✅ Improve your local SEO and visibility with verified reviews and listings
👉 Claim your free listing on Finistry today and connect with clients who need your services.
Finistry: Helping Australians connect with qualified bookkeepers and accountants across the country.
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