Difference Between a CPA and Bookkeeper - Why You Might Want Both
Bookkeeping is more transaction focused and administrative, concerned with recording financial transactions. A CPA will take your books and focus on your taxes. Can a CPA do bookkeeping? Yes, but not all firms do both - which is why you might consider hiring a bookkeeper in addition to your CPA. CPAs and bookkeepers are accustomed to working hand in hand.
Bookkeeper Duties A good bookkeeper will not only record daily transactions in a consistent way, but provide reports that bring key financial indicators together. The result is a better understanding of profitability, and an awareness of cash flow in the business. * Record transactions * Post debits and credits * Send out invoices * Balance general ledgers, subsidiaries, historical accounts * Complete payroll * Prepare internal-use financial statements * Analyzing costs of operations * Aiding the business owner in understanding the impact of financial decisions In addition, a bookkeeper can perform tasks more efficiently, meet compliance requirements, and convert accounting data into useful information. This allows you to refocus your time on growing and managing your business. Call On a CPA for Complex Accounting Issues CPAs can identify the correct accounting treatment for complex issues, perform a review to help you obtain a business loan, file your business tax return, advise you on tax planning, and offer you strategic financial advice.