The term Accountant and Bookkeeper often create confusion for some people especially those who have no background in accounting. What distinguishes the two? You can read this article to know more about their differences. Apart from that, if your company just applies a cloud-based bookkeeping system recently, we recommend you to hire BAS Agent Service Noosa services in your area.
Accounting is the process of recording, classifying, summarizing, processing and providing transaction data and information related to finance. Thus the information presented can be used for decision making or other purposes.
Then the bookkeeper or bookkeeping more emphasis on analysis activities. Bookkeeper activities are limited to recording transactions. While in accounting, accountants do the analysis and then make decisions.
Then who uses the financial information created by the accountant? There are 2 parties who can take advantage of the financial statements, namely internal and external parties.
Internal parties are parties within the organization. Where management is the party most in need of proper and accurate financial statements in order to make the right decisions as well. For example, the top leadership needs financial statements to see the company’s financial position to determine whether to buy a new machine or not.
While external parties consist of:
1. Investors: need financial statements to decide whether to buy, hold or sell an investment. Shareholders also need these financial statements to assess the company’s ability to pay dividends.
2. Employees: information related to company stability and profitability needs to be known to employees.
3. Lenders: to determine whether the company is able to repay loans and interest on time.
4. Suppliers: use financial information to determine whether the amount due can be paid when due.
5. Customers: so customers can assess the sustainability of a company especially if they are bound by cooperation or agreement with the company.
6. Government: by knowing the company’s financial statements, the government can regulate company activities, determine exposure policies and prepare statistics.
7. Society: to determine the company’s contribution to the national economy and the development of the company and its activities.