Here at ShoreSource Business Solutions, we hear this question more frequently than not. What is the difference between a bookkeeper and a CPA?
You are correct in thinking that both, a bookkeeper and a CPA, work with businesses on their financial data. And yes, both are needed. Check out the table below to learn the differences.
Accountants / CPAs
Responsible for recording financial transactions
Responsible for analyzing financial data
Records and classifies all transactions accurately in a financial software program
Assists with long term financial planning decisions for the business
Responsible for storing documents and records for tax purposes
Pulls together documents and records and analyzes for tax purposes
Prepares and pulls financial reports
Prepares tax reports and represents you to tax authorities
In the past, bookkeepers kept all business transactions in a hard-copy ledger. Yes, books and books and books stacked up in an office. With today's technology, most bookkeepers use computer software, such as QuickBooks, to record all financial transactions.
Accountants and CPAs are responsible for analyzing all the data that is recorded by the bookkeeper. Can you imagine if a business did not have the past years' worth of transactions (all the money moving in and out of the business) organized and classified correctly? Talk about a nightmare of a situation.
As you can see, bookkeepers and CPAs are critical members of your financial team. As a business owner, do your part and ensure that your financials are organized, recorded, and analyzed adequately with a group of professionals. You will thank us later!
Are you interested in learning more about ShoreSource Business Solutions, LLC?
Feel free to reach us at 843.729.2961 or firstname.lastname@example.org.