As a small business owner, you know that an experienced accounting firm can help manage the company’s finances. However, you may be struggling to decide whether you should hire a bookkeeping specialist or a CPA. Though the two specialties are similar, they perform different functions. Below, Steven M. Vogt, CPA in Chandler, AZ, explains the differences so you can make the best hiring decision for your company’s needs.
Bookkeepers are responsible for logging and tracking all business transactions throughout the year. This means they manage the data entry for your business’s invoices, expenses, payroll, and all other associated transactions. The process can be as simple or complex as your business needs it to be.
Many small business owners opt to handle their own bookkeeping, keeping track of everything on a basic spreadsheet or physical ledger. Since there are no degrees or certification programs required to become a bookkeeper, anyone can serve in this role, whether they’re a general manager or a contractor from an accounting firm.
Certified Public Accountants
CPAs are experienced financial professionals who utilize a bookkeeper’s data to help businesses understand their financial situation. Though many of these experts start out in bookkeeping, they must undergo additional training and education before changing roles.
These professionals can handle a business’s books, but they also help prepare tax returns, establish budgets, and paint a clear picture of how a company is performing each quarter. As educated tax professionals, they can also help you find deductions to lower your tax bill and provide assistance in the event of an IRS audit.
Although a small business owner may be prepared to manage their own records and tax preparation, their needs will change as the business grows. If you’re looking for a specialist who can provide comprehensive bookkeeping services, contact Steven M. Vogt, CPA today. His team provides the expertise you need to manage your company’s finances, from monthly budgeting statements to annual tax filings. Learn more about his services online, and call (480) 732-9898 to schedule a consultation.