Does your business need a bookkeeper or CPA? While they both work to assist you with your finances, there are some important distinctions between them. Selecting one over the other depends on the task at hand. What does your business need?
Bookkeeping
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. . . . any process that involves the recording of financial transactions is a bookkeeping process.” Source: Wikipedia)
Bookkeepers are a great source of help for maintaining your records. Bookkeepers commonly enter financial transactions, prepare invoices, run payroll, file interim taxes, and reconcile all financial data for accuracy. Financial reports like the income statement and balance sheet are prepared by the bookkeeper and provided to the accountant at tax time.
Your finances should be kept as up to date as possible, so you can respond to the financial needs of your business in a timely manner. Routine bookkeeping services are typically provided on a weekly, monthly, or quarterly basis.
Tax & Advice
While many CPAs do offer bookkeeping services, you can expect to pay a premium. The role of an accountant is more advisory than that of a bookkeeper. Accountants specialize in analyzing/auditing financial data, investment planning, tax planning, and tax returns. An accountant can also help identify business trends and opportunities for growth. Quickbooks Online Consulting
Many small businesses use online accounting software such as QuickBooks Online to keep track of their financials. Using a niche bookkeeper who specializes in Quickbooks Online is an excellent option for the small business owner who doesn’t have time to self-educate. A Quickbooks Online bookkeeper gives you access to specialty knowledge as-needed and cost-effectively.
In summation, bookkeepers help you maintain the day to day record keeping tasks necessary to stay on top of your finances. The result of a good bookkeeper is accurate and timely financial statements that can be used for business analysis and tax preparation. Accountants provide a higher level of business advice by explaining these reports, making projections, and helping you file taxes. The more complex an organization is, the more important it is to have a good CPA team supporting the bookkeeper.
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Need to hire a bookkeeper? Schedule a free consultation with a Quickbooks Online bookkeeper. Contact eBookkeeping Solutions today to receive a product recommendation that is specific to your business.