Bookkeeper vs CPA: What's the Difference?

The Different Roles

Oftentimes you’ll hear bookkeepers and CPA's used synonymously as if they are the same thing. We will break down why they’re different and why it's important to have both.

A bookkeeper’s role is managing the business financials day-to-day so you can understand exactly what is coming in and going out of your business, equipping you to make strategic decisions that will increase profits.

A CPA's role is to use the financial data prepared by the bookkeeper for tax planning ensuring that you as the business owner is not overpaying or underpaying in taxes, and keeping you out of trouble with the IRS. Another title for a CPA would be a tax professional.

Not a one-stop-shop

Tax planning with your CPA year-round, instead of just a year-end visit, allows you to be strategic and proactive to save money. The key is you have to know your numbers. You don’t want the one-stop-shop when it comes to bookkeeping and filing your taxes. These are two different things. Work with the experts and then let the experts work together. A conflict of interest can easily arise if the same person doing your taxes is doing your bookkeeping—there is a high chance of human error and this can create a conflict of interest. Think checks and balances.

We always recommend our clients have a good CPA. If you don't have one, ask us for our CPA recommendations. If you need to outsource your bookkeeping, get a free estimate here.