Bookkeeping vs Accounting: Which Should You Study?

What a bookkeeper does

• Processing financial transactions.
• Managing the business’s payroll system.
• Recording of financial transactions and data entry, using specialised bookkeeping software such as Quickbooks, or with spreadsheets or databases.
• Monitoring cash flow and general ledger of credits and debits.
• Producing financial documents such as income statements and balance sheets (including accounts receivable and payable).
• Reconciling financial records against bank and credit card statements.
• Some tax-related processes such as calculating GST and lodging business activity statements.

What’s the industry like?

Stable Future Growth Projected

• Professional, Scientific and Technical Services
• Construction
• Education and Training
• Retail

When is it useful to have accounting knowledge?

• You'd like to run your own firm

  Many accountants are self-employed.

• You want to help out your local community

  Many clubs, societies, and non-profit organisations rely on volunteer bookkeeping services to manage their funds.

• You'd like to build your financial skills

  People with training in bookkeeping will be able to prepare a budget and understand their personal finances.

What an accountant does

• Preparing financial statements and forecasting future performance for organisations to present to boards, managers, and/or shareholders.
• Preparing tax returns for businesses and individuals.
• Creating budgets and accounting policies in accordance with tax and business regulations.
• Offering taxation and financial advice targeted to a business’s financial situation, including advice about business plans and business structures, helping to inform business decisions and identify business needs.
• Auditing – independently examining financial reports for an organisation; and reports regarding business compliance with regulations.

What’s the industry like?

Strong Future Growth Projected

When is it useful to have bookkeeping knowledge?

• You want to become a small business owner

  You’ll understand how businesses operate already, and so can hit the ground running when it comes to managing cash flow and business records.

• You're interested in consultancy

  Because accountants understand taxation and regulatory requirements, business structures, and accounting systems, people with a background in accounting are sought after consultants.

• If you like to travel

  Although regulations are different in different countries and you’ll need to adapt to different contexts, accountants can find employment all around the world.

• You're interested in lifelong learning

  Accountants need to continually undertake training to retain professional accreditation and to stay up to date with legislative changes.

• You like the idea of senior management roles

  Chief Financial Officers and Financial Controllers often get their start as accountants.

Comparing bookkeeping and accounting courses

So, what will it be?