I recently attended the launch of Jack Delosa’s new book, Unprofessional, in which he talks about his experiences as an entrepreneur and business owner.
I was immediately drawn to his chapter on Knowing your Numbers as a business owner and the great decisions you can make when you have them. At Nudge, we love it when business owners and clients know their numbers to make great business decisions!
Jack outlines from his perspective as a business owner and business educator the types of people you need to work with to manage the finances of your business. A bookkeeper and accountant were two key roles that he viewed as critical in any business, no matter the size. I have used extracts from his new book as it gives his perspective as a business owner on how he views the different roles.
A bookkeeper is someone who does the administrative and operational tasks that relate to managing the finances of the business.
The roles of a good bookkeeper are:
This is a very wise investment for any business owner to make, because employing a bookkeeper will free them up for hours each month to work on higher value activities.
It’s a very simple way of looking at things!
The accountant is someone who offers high-level tax and financial advice. Your accountant will also lodge all of your compliance work with the tax office, including your quarterly BAS, PAYG tax and company income tax.
The roles of a good accountant is:
So the bookkeeper manages the ongoing financial transactions of the business and the accountant manages the tax and financial advice.
Differences in the role of the bookkeeper and accountant are one of the key issues that many businesses face when they want timely business numbers. The reason that businesses have these issues are:
At Nudge, we have combined the role of the bookkeeper and accountant to make sure that our clients receive timely reporting that puts the focus on them and their business. Ultimately, that is what the numbers are all about, making great decisions for your business! We use accountants to do our bookkeeping which means our clients have the confidence to make decisions on their numbers. And just like Jack in his book, it is all about knowing your numbers!
Want to know more about knowing your numbers, get in touch with Nudge at firstname.lastname@example.org or 1300 068 343.