{"id":1285,"date":"2019-05-14T11:13:18","date_gmt":"2019-05-14T11:13:18","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=1285"},"modified":"2023-05-03T10:08:07","modified_gmt":"2023-05-03T10:08:07","slug":"bookkeepers-vs-accountants-does-your-smb-need-both","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/bookkeepers-vs-accountants-does-your-smb-need-both","title":{"rendered":"Guest post: bookkeepers vs accountants: does your small business need both?"},"content":{"rendered":"
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\"bookkeepers<\/figure>\n<\/div>\n\n\n

If you\u2019re looking into getting help with your financials, congratulations on taking a big step for your business. <\/p>\n\n\n\n

It\u2019s important to have someone assist you with making sure your books are clean, up-to-date, and easy to read for tax season. <\/p>\n\n\n\n

Should you engage bookkeeping services, though? Or do you need an accountant?
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We\u2019ll go through the differences between accountants and bookkeepers, and help you figure out the questions to ask to figure out the best path for your company.<\/p>\n\n\n\n

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The difference between accountants and bookkeepers<\/strong><\/h2>\n\n\n\n

We\u2019ll first start going through the differences between accountants and bookkeepers. You\u2019ll need to know this\u2014as well as a third category, CPA, which we\u2019ll get to\u2014in order to understand what your business actually needs.<\/p>\n\n\n\n

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Main functions of a bookkeeper<\/strong><\/h2>\n\n\n\n

A bookkeeper performs the basic financial tasks that your business needs done daily (although they often don\u2019t work daily). This includes things like making sure your accounts receivable and accounts payable are both kept track of and up to date. Do you have credit card or business loan payments? A bookkeeper will help you make sure these are paid and that you\u2019re not charged late fees. If you collect sales tax, a bookkeeper can also help you get that paid.
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It\u2019s a good idea to have a bookkeeper watching over your financials. Even if you\u2019re already using a business accounting program<\/a>, having professional oversight is massively helpful (and can save you money in the long run). Many bookkeepers work on contract with companies; with small businesses, there\u2019s generally not enough work to do to encompass a full-time position, so they often work with several clients at once.<\/p>\n\n\n\n

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Main functions of an accountant<\/strong><\/h2>\n\n\n\n

An accountant is more advanced. They can perform bookkeeping functions, but they also go deeper\u2014preparing financial statements and even prepping tax documents (though they can\u2019t file them). An accountant keeps an eye on the bigger picture, looking less at the day-to-day activity, and more at top-level reporting.
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If you\u2019re to engage an accountant, they can do what you need from a bookkeeper; they need that foundation information to do the more strategic work, anyway. <\/p>\n\n\n\n

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Understanding the job of a CPA<\/strong><\/h2>\n\n\n\n

Are you confused that we said an accountant can\u2019t file your taxes or represent you to the IRS? You\u2019re certainly not alone; many people think that accountants and CPAs are the same. CPAs\u2014certified professional accountants\u2014are <\/em>accountants, but they have an extra level of certification<\/a>, which makes them authorized to sign and prepare your taxes for the government.
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As you might expect, CPAs charge a premium for their service, so you\u2019ll likely only interact with CPAs come tax season.<\/p>\n\n\n\n

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Do you need both an accountant and a bookkeeper?<\/strong><\/h2>\n\n\n\n

As we mentioned, one thing a bookkeeper or a regular accountant isn\u2019t <\/em>is certified to do your taxes come tax season. And every small business (obviously) has to file their taxes. So, in a way, you do need both someone to do your bookkeeping tasks as well as a CPA, since you\u2019ll need someone to both do your books as well as your taxes. That said, many business are fine only engaging a CPA when they start getting their taxes in order.
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The question for you as a business owner, then, is more about whether you want to engage an accountant <\/em>year round. The honest answer is it depends. And, sure, that may not be satisfying or definitive, but the answer is dependent on your answers to a few questions.<\/p>\n\n\n\n

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How to know what\u2019s best for your business<\/strong><\/h2>\n\n\n\n

Figure out the answers to these questions:
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