CPA or Bookkeeper: Who Do You Actually Need?

“Do I need a bookkeeper or a CPA?”

Most business owners I talk to are confused about which accounting professional they need. Many don’t understand why they might need both. And I get it – our public school education doesn’t usually cover taxes or how to manage a business. As a bookkeeper, part of my work is helping business owners figure out which professional they actually need.

 

It Depends on Your Needs

So, which one do you need – a CPA or a bookkeeper?

Well, that depends on your needs.

Let’s break this down based on what you’re trying to solve:

 

“I’m Stressed at Tax Season”

If you want tax season to be easier, you need a bookkeeper. Here’s why:

• We keep your financial records organized monthly or quarterly
• We catch and fix issues during the year
• When tax time comes, your P&L and other reports are ready for your accountant

 

“I Need Help Filing Taxes”

If you need tax filing help, you need an accountant. But here’s something interesting – they don’t have to be a CPA. You have options:

• Regular accountants can file taxes
• Enrolled Agents (EAs) are tax experts who can represent you to the IRS
• Not all CPAs even do taxes

Having a bookkeeper too makes your tax preparer’s job easier (and often cheaper for you).

 

“I Want to Reduce My Taxes”

If you want to pay less in taxes, you need a tax planner, not just a tax preparer. What’s the difference?

• Tax preparers complete your tax return with the documents you provide
• Tax planners work with you throughout the year to estimate and reduce your taxes

Important note: If you want tax planning, make sure to:

• Look for an accountant or EA who specifically offers planning services
• Verify you’re getting (and paying for) planning, not just preparation

Many business owners get disappointed because they expected planning but only paid for preparation

 

“Wait, I Don’t Need a CPA for Bookkeeping?”

No, you don’t! In fact, not all CPAs know how to do bookkeeping. But you do want a quality bookkeeper who understands taxes. Pro tip: Ask your tax professional for a referral – they know who they work well with.

 

What This Means for You

You might need:

• Just a bookkeeper (for organized finances)
• Just a tax preparer (for filing taxes)
• Both (for the smoothest tax season)
• A tax planner (to reduce taxes)

The key is matching the professional to what you actually need.

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Want to explore how bookkeeping can make your tax season smoother? Check out our services page to get started.