CPA vs. Bookkeeper - Which One is Best for Your Small Business?

Does your small business really need a CPA, or can bookkeeping services handle your needs the best? It is important to understand the fundamental differences to know how best your business will be served.

It starts with how your business is set up and where you see it going.  Some small businesses make do with an untrained individual or moderately skilled employee to do the daily job of recording transactions into the company’s accounting software.  The information then has to be revamped into a useable format by the accountant or CPA for tax reporting or generating a financial statement for your bank.  A CPA firm can do much more than just taxes; they can do the recording of daily transactions, bank reconciliation, and generate financial statements. They analyze, interpret and convert that financial information into actual business intelligence. You need to be able to communicate where you see your small business going and a good CPA firm has the experts and the knowledge to tell you how to get there.

The differences between a bookkeeper and an accountant are significant and can greatly impact your businesses tax liability and can have expense and revenue implications. A small business that partners with a CPA for accounting services is going to have the benefit of a partner who knows how to position the business around existing and changing federal, state and local tax laws.

A CPA is going to be able to properly advise a small business on the best way to record a transaction for the type of business and properly manage expense and revenue liabilities.

As your business grows, you need an advisor to help guide the business in a direction that mitigates tax liability and manages growth. Should you find your business subject to audit notices from the IRS or State and Local governments, you will find your CPA capable of handling and managing the audit process with ease.

Finding the right accountant for your small business is one of the most important relationships your business will forge.

Fox & Company CPA's has been servicing the Vancouver, WA and the Portland, OR metro area as an accountant for over 15 years; serving individuals, small business, non-profits and governments with professional, affordable CPA services.