While there is often overlap between a bookkeeper and a CPA, they serve distinct purposes for you as a business owner.
Think of it like the difference between a nurse and a doctor. In general, a CPA is like a doctor you see for major events (birth, surgery, etc). In the financial world you “see” a CPA for major events like tax filings and financial analysis. Their focus is on taxes and saving you money.
A bookkeeper, on the other hand, is like a nurse. They are always by your side, taking care of the details (the nitty gritty stuff) through all your ups and downs, making sure you are well taken care of.
In your business, a bookkeeper tracks the money coming in and out of your business. They are the ones who will categorize your expenses and reconcile your books so that you have good financial reports. They take care of the everyday details and make sure your CPA has what they need at tax time.
Sometimes a CPA will offer bookkeeping services and sometimes a bookkeeper will do tax prep and filing. They are both independently important and have their own roles and strengths. In an ideal scenario, these two roles will work together to form a dynamite team for your business.
Wondering when it’s time for you to hire a bookkeeper? I’d love to have a quick 15 minute phone call to hear more about your business and determine the best path for you.