What Can an Accountant Do That a Bookkeeper Cannot? | Justwise Accounting

What Can an Accountant Do That a Bookkeeper Cannot?

For many business owners, the terms bookkeeper and accountant are often used interchangeably. But while both roles are critical to financial clarity, they serve distinct functions. Understanding these differences can help you determine when to engage each service — and ensure you're not expecting one to do the job of the other.

Bookkeeper vs Accountant: Who Does What?

A bookkeeper is responsible for maintaining accurate day-to-day financial records. This includes:

• Recording transactions

• Reconciling bank statements

• Managing accounts receivable and payable

• Processing payroll (in some setups)

• Coding receipts and expenses

• Generating basic financial reports (profit & loss, balance sheet)

In contrast, an accountant provides a broader and more strategic layer of financial oversight. Their responsibilities often include:

• Preparing and lodging business tax returns

• Offering tax planning advice

• Structuring your business for compliance and growth

• Conducting financial forecasting and budgeting

• Ensuring compliance with ATO regulations

• Interpreting financial data for better business decisions

What Is Considered Full Charge Bookkeeping?

The term "full charge bookkeeping" refers to a more advanced bookkeeping role that handles not only regular transaction entry but also:

• Managing the general ledger

• Handling payroll and super

• Preparing internal financial statements

• Liaising with the external accountant for year-end close

While comprehensive, full charge bookkeepers still don’t replace accountants for tax strategy, formal lodgements, or business structuring.

Do Bookkeepers Do Payroll and Pay Bills?

Yes — many modern bookkeepers do assist with payroll, superannuation, and bill payments. This often depends on the engagement agreement and tools used (e.g., Xero with payroll add-ons). However, it’s important to note:

• A bookkeeper can process payroll, but only an accountant can advise on payroll tax optimisation.

• A bookkeeper can schedule payments and manage due dates, but they cannot provide advice on cash flow strategy or deferrals for tax efficiency.

When Do You Need an Accountant?

You’ll want to engage an accountant when:

• Your business is growing and requires structural advice (e.g., trust vs company).

• You need to prepare and lodge your BAS or income tax returns.

• You require financial projections or loan applications.

• You’re being audited or receiving ATO notices.

• You want to reduce tax legally and improve profit margins.

The Best Setup: Bookkeeper and Accountant Working Together

For small to medium businesses, the most effective model is a collaborative approach:

• The bookkeeper ensures your records are timely and accurate.

• The accountant reviews, interprets, and advises based on that data.

This combination ensures financial hygiene and strategic direction — without unnecessary duplication or overpayment.

Final Thoughts

If you're unsure whether you need a bookkeeper or an accountant, the answer might be both — just at different stages of your business journey. Bookkeepers help you stay organised day-to-day, while accountants help you navigate the bigger picture.

At Justwise Accounting, we collaborate with both internal and external accountants to ensure our clients receive seamless, full-spectrum financial support.