CPA vs. Bookkeeper: Many small businesses are looking for someone to handle their records.

This could be due to lack of time or experience but are not sure of the different types of record keepers. There are bookkeepers, accountants, and CPAs. Many know about accountants, in a CPA vs. Bookkeeper situation, which one is the best? Also, which one does your business need right now?

CPA vs. Bookkeeper

First, let’s start with the basics of what a bookkeeper and CPA are. A bookkeeper records the everyday transactions of a business into accounting software, like QuickBooks. These include managing payroll, creating invoices, and posting debits and credits. Bookkeepers do not possess the education of a CPA, although they generally have 2-4 years of experience or an associate’s degree.

CPAs, also called Certified Public Accountants, have acquired an education in accounting. They have also passed the Uniform Certified Public Accountant Examination. CPAs handle the more complicated records of a business, such as IRS auditing, tax services, and financial services. A CPA oversees or works with bookkeepers to make sure business records are handled correctly.

So Which One is Best?

If you are just looking for someone to keep track of your everyday records, then a bookkeeper may be a suitable choice for you. Hiring someone to handle the books ensures the financial success of your business. In addition, they allowing you to focus on other aspects of your business without worrying about making sure your records are appropriately handled.

However, when it comes to more important records, such as tax documents and tax advice, a CPA is vital for your business. A CPA will review your financial records and advise you about finances and taxes. A CPA also can sign business tax records and represent your business just in case IRS issues arise.

So, CPA vs. Bookkeeper, which is the best option for your business? Having both a bookkeeper and a CPA is the best choice, but not always feasible. Depending on your business’s size and financial situation, it could be hard to hire both. Here at Reconciled, we have the experience needed for handling your bookkeeping as well as an option for you to hire a part-time CFO/CPA to help you grow. For more information, feel free to contact us.