Many clients come to us thinking that bookkeepers perform the same job as CPAs (certified public account), but actually, there are quite a few differences between bookkeepers and CPAs. The easiest way to differentiate between the two is to think about it like this: CPAs assess the financial data for a business, prepare income tax returns and provide general business tax planning advice. Bookkeepers manage the day-to-day financial tasks for a business. These financial tasks would include categorizing expenses in the general ledger, checking for data accuracy, reconciling bank statements, compiling daily data and creating financial statements. Skilled bookkeepers, such as SoCal Elite Accounting, provide additional value by setting a business up with an industry-specific general ledger and helping a business understand cashflow and cost-per-client as it pertains to its industry.
CPAs Do NOT Specialize in Bookkeeping
We are not saying that say CPAs can’t perform transaction bookkeeping – of course they can. It’s that their specialty or line of work focuses more on looking at the bigger picture rather than everyday numbers for business activity. Such as tax preparation and planning and assessing financial data. CPAs strongly dislike data entry.
Bookkeepers Understand Detailed Tracking
What this means is that every transaction big or small is recorded. For example, when you make a financial deposit, that same deposit is reflected in your books. Bookkeepers uuse accounting software the way it was meant to be used so that no data or transaction goes missing or is misfiled, and every transaction is accurately logged in your books. Bookkeepers make sense of and translate the data business owners care about most: cashflow.
CPAs Are Tax Experts
When it comes to preparing tax returns and providing tax planning advices, CPAs are the experts. They understand full tax compliance, important deadlines and deductions. Certified accountants are able to look at all of a business’s financial information and help them make better financial decisions for allocating resources for improving overall performance.
Bookkeepers Free Up Your Day
Most business owners are already struggling to find enough hours in their day to run their business and to make personal time for themselves. By working with an experienced bookkeeper who keeps records of their daily transactions, manages your expenses, payroll, bill payments and financial reporting will not only free up time in their day, but can also provide some sanity and peace of mind.
Builds a Team of Experts
Honing one’s expertise in a particular field means that they have become the authority in the at field. Accountants and bookkeepers each specialize and focus in specific areas of finance. By building a team of specialized experts, business owners allow their business to benefit from greater financial rewards.
About SoCal Elite Accounting
Bookkeeping Done Right!
Build your team of experts with SoCal Elite Accounting. Not only can we handle your bookkeeping needs, we can also recommend a CPA.
Located in Orange County, SoCal Elite Accounting is one of the region’s most trusted companies. Working with SoCal Elite Accounting means receiving personal, professional and precise service. For years, we have served clients according to these guiding principles, establishing a reputation for careful, reliable and judicious service with companies throughout the region.
Our services are available for businesses in any industry, as well as individuals. We offer daily, weekly and monthly services that can be customized based on your exact needs. No matter the type of service you need, you’ll work with bookkeepers who are professional, courteous and experienced.
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