What is the difference between a Xero Accountant vs. Xero Bookkeeper? Despite both being considered Advisor roles by Xero, there is actually a big difference in the level of services and advice provided to you as a small business owner.
In this article, we will discuss what it means to be an accountant versus a bookkeeper as well as help you to decide which advisor role is best for your business right now.
What exactly is a Xero Advisor?
Xero is a cloud-based accounting software designed to provide you with access to your financial cash-flow in real-time from any device. Therefore, you will find that most advisors can work with you from anywhere. Advisors are there to get you set up on any device, provide you with knowledge of the system that you may not already know, such as the number of user-friendly platforms that integrate with Xero and finally to teach how to navigate through the system like a pro.
All Xero Advisors are there to assist you in running your business no matter their skill level. Xero accountants and bookkeepers share the same main goal: to assist you in maintaining accurate financials that will allow you to make the best decisions for your business. What you must decide is the level of value-added service you’re looking for in an advisor.
What is a Xero Accountant vs. Xero Bookkeeper?
Below is a brief explanation of some key differences between a bookkeeper and accountant followed by when each role can really come in handy.
As a general rule, bookkeepers have a more basic knowledge of accounting transactions. They’re likely to be able to walk through reconciling transactions, setting up a chart of accounts and organizing your books. Since much of these skills can be learned through on the job experience, they may not necessarily have a degree in accounting as there is no formal training required to be a bookkeeper.
Accountants can provide you with the knowledge base to not only publish accurate financial reports but also to implement strategies that will save you time and money. Typically to be considered an accountant, some sort of four-year degree has been earned. Many accountants are licensed CPAs (Certified Public Accountants), a certification that requires additional schooling and the passing of a board exam.
Advantages of using a Xero Accountant
Xero accountants are trained to do the following:
- Implement tax saving strategies to save your business both time and money
- Provide you with tax advisory services on a consistent basis (i.e. they don’t vanish after tax season ends)
- Analyze the financial reports (Balance Sheet, Income Statement, Cash Flow)
- Have a broader understanding of the financial transactions
- Make adjusting journal entries as needed as they have vast knowledge of accrual accounting
- Take a more top-level approach to the financials and to consider the “bigger picture”
- As discussed earlier, you’ll often find that Xero accountants have a higher level training of training than Xero bookkeepers
To sum it up, Xero Accountants are the “whole package”.
When Do You Need a Xero bookkeeper?
Considering that accountants have the skill set to offer these value-added services, it’s likely that they will come at a greater fee. Sometimes it may turn out that what you really need is an advisor that focuses only on Xero bookkeeping services.
If you’re just starting out as business owner and the accounting is on the simpler side but you can feel your frequent visits to Xero slipping away, then perhaps it’s time to outsource. Bookkeepers can help you to stay organized by keeping your bank accounts reconciled, coding expenses and even managing your payroll. This will help free you of your tedious tasks so you can focus on increasing profits.
Figure Out Your Next Move
Don’t wait around until you’ve become so overwhelmed, you HAVE to hire someone. Oftentimes this ends up costing you more money in the end because if you can’t keep it straight, it’s likely your Xero accountant or Xero bookkeeper will have a heck of a time playing catch up. And as we all know, time is money.
So figure out the right move for YOUR business that fits within your budget. You may find that you need both a Xero Accountant and Xero bookkeeper. At delucia + co. we have highly skilled CPAs AND Xero-certified bookkeepers. If you’re looking for knowledgeable accountants dedicated to assisting you with growing your business within a digital platform such as Xero, please don’t hesitate to reach out to us via our contact page or just give us a call.