What is the Difference Between a Bookkeeper, an Accounting Service, and a CPA?
What is the difference between a Bookkeeper, an Accounting Service, and a CPA?
In a word – expectations.
Typically a bookkeeper is an individual who likes numbers, is efficient and accurate with data entry, and is very organized when it comes to paper pushing. What you can expect from a bookkeeper is timely and accurate data entry, current Accounts Receivable and Accounts Payable reporting, and a comprehensive, organized filing system. As well as monthly reconciliation without “plugging” balances. If you are considering keeping the books yourself ask yourself if it is the highest and best use of your time!
So what makes an Accounting Service different from a bookkeeper? In accounting we cover the bigger picture; operations, wealth management and tax implications (not tax strategy – that is your CPA). The balance sheet is completely understood and knowing how to read numbers is a part of the work. In accounting we can tell you the story of your numbers and how they relate to the long term sustainability of your company as well as the development of your wealth.
The role of your CPA is your tax advisor. Their job is to make sure you pay the least amount of tax possible within the tax code. The tax code is a monstrous document that changes every year. In my opinion when a CPA is on top of their game, they do not do bookkeeping and accounting. Their work is in strategy. – making sure you are structured to attain the wealth goals you desire without paying more than your share of tax and ensuring your assets are protected. When choosing, choose wisely, to ensure they work for you and not the government.
Each of these roles is one of support. Supporting you in achieving the goals you have in mind to achieve. At Abundance Accounting we believe in a partnership and work to prepare you for any major financial decision or revenue strategy. We partner with you, providing accurate accounting to ensure you are on track to achieve your vision and goals. Call us today if you are interested in exploring a new level of service and receive “10 Tips for Business Forecasting”.