As a group, small business owners are expert-level DIYers. But, even the most resourceful small business owners will eventually find themselves needing to bring in experts to help them manage their business finances. If you’re a small business owner navigating just this situation, then congratulations. This can be a pretty exciting time for a small business owner. After all, needing help managing business finances implies that your business is growing! However, while recognizing that it’s time to bring in help is a great first step, it’s a bit easy to stumble over precisely what kind of support is appropriate for your organization.
What is a CPA?
A CPA is an accounting professional that is certified by a board and is legally allowed to prepare taxes. Good CPAs will make sure you and your business stay on the IRS’s good side – a huge selling point for any small business owners concerned with filing taxes correctly
Simply speaking, a bookkeeper is somebody who takes care of your day-to-day books. Bookkeepers make sure that your daily finances are organized and will alert you to any red flags or concerning trends. Organized books help you, as the business owner, really understand your revenue, which will help you make the best decisions for your business. Unlike CPAs, bookkeepers will not help you prepare or file tax returns. However, organized books will make it much easier for you to file yourself. While there are exceptions, bookkeepers generally don’t have as much education or training as CPAs and cost less as a result.
But, many small business owners have multifaceted needs that live somewhere in the gray area between CPAs and bookkeepers. They need somebody to help with taxes and
If you can afford it, the best option will always be a CPA and a bookkeeper – preferably from separate organizations. Create a world in which the two professionals are checking each other’s work. Not because you don’t trust them, or because they are bad at their jobs, but because