1 min read
10 Nov

We are honored to have Mark Willcox, owner of Willcox Tax Advisors, as a guest blog writer. Mark’s CPA firm is located in Charleston, SC. Mark and Matt Buckner, owner of ShoreSource Business Solutions, work hand in hand with one another and often find themselves referring clients to each other. Being a CPA and a bookkeeper you often hear the same questions. Do I need both a CPA and a bookkeeper? Mark is here today to explain more in-depth the importance of a professional relationship with a CPA and a bookkeeper.

Did you know that ancient accountants used clay tokens to keep track of animals and grains? The old accounting tracking system was only just the beginning. Centuries later, we now have our bookkeepers and certified public accountants (CPA’s) to track our business finances in today's world. However, many people become confused when trying to understand the difference between a Bookkeeper and a CPA. There is some some overlap, which is why we are here today to help you understand.

Bookkeepers are the professionals we look to when it comes to keeping track of the money that's moving in and out of business. Bookkeepers have systematic, consistent recording of transactions for the company's current and past financial information. Bookkeepers help reconcile bank and credit card accounts to ensure all transactions are properly recorded in the company's general ledger.

CPA’s are accounting and tax professionals who take a rigorous four part CPA exam to become certified in their respective state. Common areas of fucus are Audit, Tax, and Industry. Tax CPA firms like Willcox Tax Advisors often help individuals and businesses with strategic tax planning, while also preparing and filing income tax returns. Find yourself in an IRS audit? Your tax CPA is the first call you would make.

Does a bookkeeper and a CPA do the same thing? Bookkeepers and CPA’s service offerings can overlap in payroll tax filings, reconciliations, accounting cleanup in your accounting software and recording transactions. However, cleanup work is often better suited for bookkeepers. Both will often help discuss cash flow needs, but bookkeepers are better suited for help with ongoing payables and other daily operational needs.

'Both are crucial, and that's why businesses need both. Mark Willcox, the owner of Willcox Tax Advisors, suggests having both [bookkeeper and CPA] saves businesses money in the long run. He said, "Often, I see clients hire a tax person for bookkeeping and they pay more money for less time and attention. Rely on the experts for what they do best!” Contact your bookkeeper first and if they don't know, contact your CPA. Your CPA will help advise you on income taxes, retirement planning, fixed asset purchases, real estate transactions, and other general business planning. Both are important, and both are worthy of having to help your business be successful.

Are you interested in learning more about ShoreSource Business Solutions, LLC?
Feel free to reach us at 843.729.2961 or