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.

 

 

Setup

	Data Entry	Bookkeeper	Accountant
Appropriate accounting software set up	x	✓	✓
Data file and account list	x	✓	x
Correct links, preferences and tax codes	x	✓	x
Cards and inventory items for efficient use	x	✓	x
Opening balances for accounts, debtors etc	x	✓	x

 

 

 

Enter Transactions

	Data Entry	Bookkeeper	Accountant
Bills and invoices	✓	✓	x
Recurring transactions and other shortcuts	x	✓	x
Receipts and payments	✓	✓	x
Make electronic payments	x	✓	x
Reconcile creditors	x	✓	x
Follow procedural checks	✓	✓	x

 

 

 

Checks, reconciliations and end of year processes

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

 

 

 

Payroll

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

 

 

 

Other

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

 

 

 

Legal, tax and management

	Data Entry	Bookkeeper	Accountant
Set up appropriate legal structures	x	x	✓
Legally prepare BAS returns	x	✓	✓
Calculate depreciation and interest expenses	x	x	✓
Annual tax returns and tax planning	x	x	✓
Fringe benefits tax returns	x	x	✓
ASIC returns	x	x	✓
Management advice	x	x	✓

 

 

 

The above chart is a generalisation of duties. There may be variations in regards to the functions performed as some accountants diversify and offer bookkeeping services. Some data-entry people may also be qualified to do perform a greater range of tasks.