Word size and memory addresses

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My understanding of word size and memory addresses is as follows. An 8bit machine will have an address bus of size 8bit and have 256 memory addresses. A memory address is the location of each address so this machine can make use of 256 bytes of RAM. Now a 32 bit machine has an 32 bit word size ie 4bytes. At this point I get confused. In terms of usable memory, online tells me 4gb but if each memory address is 4bytes in size then surely it only has 1 million total memory addresses available ie 1gb of ram can be used? What am I mixing up here?

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