In order to fully maximize the efficiency of your company’s fiscal recordkeeping, you may choose to hire both a CPA and a bookkeeper. While it may be tempting to try to hire one person to manage all of your financial matters, a CPA and a bookkeeper each have unique perspectives that work together to better your fiscal health. In this article, we’ll be taking a look at the partnership between your CPA and bookkeeper, and how each contributes to your business’s overall wellness.
Your CPA and Bookkeeper Have Different Areas of Expertise
While a CPA has intimate knowledge of tax law and can help with financial analysis and consulting, bookkeepers focus on the day-to-day of your business’s finances. According to Accounting Web, your bookkeeper knows the nitty gritty of your business operations and can easily spot patterns and issues that may not be visible from a higher level. They can help you reconcile your bank statements, maintain payroll, and track accounts payable and receivable to ensure that you’re operating at peak efficiency and managing your cash flow appropriately.
Bookkeeping professionals also have an intimate knowledge of different small business accounting software options and can help you determine and manage the one that will be most beneficial for your company. They also understand your needs and pain points on a more personal level and will work with you to make sure that your concerns are being met on both a micro and macro scale.
Your Bookkeeper Sets Your CPA Up for Success
Because tax professionals and bookkeepers have different strengths and skill sets, utilizing the services of both is a great way to keep your business’s finances healthy and thriving. A bookkeeper will keep detailed financial records throughout the year, provide updates on your progress through Profit and Loss statements, and make sure everything is in order for your CPA come tax season. With all of your records organized, your CPA then has everything he or she needs to minimize your tax liability and file your tax return efficiently. They can also use the detailed information provided by your bookkeeper to construct financial projections for your business’s future.
Your CPA and Bookkeeper Are Your Financial Dream Team
The partnership between your CPA and bookkeeper ensures that your business’s financial matters are being closely monitored and maintained routinely, and that this information can be used not only for your taxes at the end of the year, but also to secure the long-term health of your business. Engaging the services of both a bookkeeper and CPA guarantees that your company’s finances are examined from all angles and sets you up for long-term success as an entrepreneur.