Difference between Data Entry, Bookkeeper and Accountant

There is often a misconception that data entry, bookkeeping and accounting are the same disciplines. The chart below identifies the different duties of these 3 roles. And at TWO DOTS, we are bookkeepers helping our clients and professionals fulfil their requirements.

Setup

	Data Entry	Bookkeeper (TWO DOTS)	Accountant
Appropriate accounting software set up	–	Yes	Yes
Data file and account list	–	Yes	–
Correct links, preferences and tax codes	–	Yes	–
Cards and inventory items for efficient use	–	Yes	–
Opening balances for accounts, debtors etc	–	Yes	–

Enter Transactions

	Data Entry	Bookkeeper (TWO DOTS)	Accountant
Bills and invoices	Yes	Yes	–
Recurring transactions and other shortcuts	–	Yes	–
Receipts and payments	Yes	Yes	–
Make electronic payments	–	Yes	–
Reconcile creditors	–	Yes	–
Follow procedural checks	Yes	Yes	–

Checks, reconciliations and end of year processes

	Data Entry	Bookkeeper (TWO DOTS)	Accountant
Reconcile reports with BAS returns	–	Yes	Yes
Check accuracy of all reports	–	Yes	–
Follow up unreconciled transactions	–	Yes	–
Organise and perform system back ups	–	Yes	–
Reconcile bank and credit card accounts	–	Yes	–
Run company data auditor and fix problems	–	Yes	–
Set up users with passwords and audit trails	–	Yes	–
Roll over data file for financial and payroll years	–	Yes	–

Payroll

	Data Entry	Bookkeeper (TWO DOTS)	Accountant
Set up payroll categories and accounts	–	Yes	–
Set up employee cards	–	Yes	–
Enter/import time sheets	–	Yes	–
Apply payroll legislative requirements	–	Yes	–
Process pay, adjustments, leave etc	–	Yes	–
Keep track of outstanding entitlements/leave	–	Yes	–
Reconcile payment summaries	–	Yes	–
End of year payroll rollover and tax table updates	–	Yes	–

Other

	Data Entry	Bookkeeper (TWO DOTS)	Accountant
Get support from professional advisors	–	Yes	Yes
Assist with profit and loss cash flow budgets	–	Yes	Yes
Suggest cost control measures	–	Yes	Yes
Assist with stock takes	–	Yes	–
Customise invoices, statements and cheques	–	Yes	–
Keep legislative and industry knowledge up to date	–	Yes	Yes
Sort out problems and offer record keeping solutions	–	Yes	–
Set up procedural checklists and train your staff	–	Yes	–
Visit premises regularly	Yes	Yes	–

Legal, tax and management

	Data Entry	Bookkeeper (TWO DOTS)	Accountant
Set up appropriate legal structures	–	–	Yes
Legally prepare BAS returns	–	Yes	Yes
Calculate depreciation and interest expenses	–	–	Yes
Annual tax returns and tax planning	–	–	Yes
Fringe benefits tax returns	–	–	Yes
ASIC returns	–	–	Yes
Management advice	–	–	Yes

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