What Is the Difference Between a Bookkeeper and a CPA?
Quick Answer
A bookkeeper usually handles the day-to-day work of keeping your business financial records organized, while a CPA has additional education, testing, and licensing and may provide a wider range of accounting services.
Both can be important to a small business. AZ Easy CPA provides CPA and bookkeeping services in Chandler, Arizona and beyond, allowing business owners to get help with their books while also having access to CPA knowledge.
What Does a Bookkeeper Do?
A bookkeeper focuses on keeping track of what’s happening with your business money. They help make sure your financial records stay organized and current throughout the year.
Bookkeeping may include:
- Keeping track of money coming into the business
- Recording and organizing expenses
- Putting transactions into the correct categories
- Keeping QuickBooks organized
- Checking bank accounts against your records
- Checking business credit card accounts
- Finding missing or incorrect transactions
- Fixing common bookkeeping mistakes
- Preparing basic financial reports
A bookkeeper’s job is largely about keeping the financial information organized so you have a clear record of what happened.
What Does a CPA Do?
A CPA, or Certified Public Accountant, is an accounting professional who has completed specific education, testing, and licensing requirements.
Depending on the services they offer, a CPA may review financial information, answer accounting questions, help business owners understand financial reports, provide bookkeeping services, or assist with other accounting needs.
The easiest way to think about the difference is that bookkeeping helps keep the financial information organized, while a CPA may help you understand and use that information in additional ways.
Not every CPA provides the same services, so it’s important to ask what a particular CPA firm handles.
Do I Need a Bookkeeper or a CPA?
It depends on what you need help with.
If your biggest problem is keeping up with transactions, organizing expenses, maintaining QuickBooks, or getting your books current, you’re primarily looking for bookkeeping help.
If your books are organized but you have accounting questions or need help understanding your financial information, you may need a CPA.
Many small businesses need a little of both. That’s why some business owners choose a CPA firm that also provides bookkeeping.
Can a CPA Also Be My Bookkeeper?
Yes. Some CPA firms provide regular bookkeeping services in addition to other accounting services.
This can make things easier for a small business owner because you don’t necessarily have to explain your business finances to multiple people. The same firm that helps maintain your books already has access to the financial information when other accounting questions come up.
It can also help keep communication simpler when there is a question about a transaction or something in your financial records doesn’t look right.
Why Do Bookkeepers and CPAs Work Together?
Bookkeepers and CPAs often work with the same financial information, just in different ways.
Think of your bookkeeping as putting all the pieces in the right places. Your income, expenses, bank activity, and credit card transactions are recorded and organized so the financial picture makes sense.
Your CPA can then work with that organized information when you have questions or need additional accounting help.
If the bookkeeping isn’t accurate, your CPA may first have to figure out what happened before the numbers can be useful. That’s why good bookkeeping is an important starting point.
Frequently Asked Questions
Is a bookkeeper an accountant?
Not necessarily. A bookkeeper focuses mainly on maintaining financial records. An accountant may provide additional services involving the review or use of financial information.
Is every accountant a CPA?
No. A CPA has completed specific education, testing, and licensing requirements. Someone can work as an accountant without being a CPA.
Is a CPA better than a bookkeeper?
One isn’t necessarily better than the other. They perform different jobs. The right choice depends on what kind of help your business needs.
Do I need both a bookkeeper and a CPA?
You may. Some businesses use separate professionals, while others work with a CPA firm that provides bookkeeping and accounting services in one place.
Can a CPA clean up my QuickBooks?
A CPA firm that provides bookkeeping and QuickBooks clean-up services may be able to review old transactions, fix mistakes, check accounts, and bring your books up to date.
Looking for a Bookkeeper or CPA in Chandler, Arizona?
AZ Easy CPA provides bookkeeping and CPA services in Chandler, Arizona and beyond. Whether you need someone to keep up with your books, clean up QuickBooks, or answer questions about your business finances, you can get both bookkeeping support and access to CPA knowledge in one place.
Reach out to Chris at AZ Easy CPA. He can look at where things stand, explain what you may need in plain English, and help you figure out the right kind of support for your business.
