Do you need a Bookkeeper, Accountant or CPA?
What's the Difference? How to Choose?
If you spend too much time on data entry, feel unsure about the meaning of debits or credits, or you are wondering how you could be even more financially successful, you ought to seek the help of a financial professional.
Laurence who runs a Non-profit focusing on saving fish from burning needs a different level of financial help. He has a good understanding of the organization, its future and has even developed a plan to get there. He just does not have enough time for the daily financial data entry.
These business owners would benefit from hiring a supportive finance professional.
What’s the Difference between a Bookkeeper, Accountant and CPA?
Hire a bookkeeper if data entry is needed, recording general day-to-day transactions, bank reconciliations and compliance. Bookkeepers supply limited analysis. Their main responsible is to record the financial transactions of the business.
The first step in understanding the financial success of your business is accurate data entry. When a bookkeeper is done the data pieces have been put into place.
Accountants are dependable strategic business partners. By looking for and highlighting trends they supply insight. They analyze, interpret, and guide. You will understand and feel confident with your financial decisions.
Accountants help you make perceptive financial decisions.
A CPA goes beyond bookkeepers and accountants. After passing a rigorous exam and with proven experience they become licensed. To maintain their license, a CPA fulfills on-going continuing education requirements. They follow a code of ethics.
A CPA keeps up on the latest trend analysis, compliance issues and best business practices.
How to Choose
IF you want
- Info recorded and general compliance – BOOKKEEPER
- Insights into your data and how to take you to the next step of success – ACCOUNTANT
- You want all the above and extra confidence – CPA
Accountants and CPA’s both could provide you with a level of insight and knowledge, a CPA has gone the extra step.
Hiring a knowledgeable financial professional is not a guarantee of financial success, it is another step-in the direction of building success.
Based on what we just learned:
Alicia should hire an accountant, or a CPA. Alicia cares enough about the financial success of her business to realize she needs sound financial advice.
Laurence feels secure in understanding the financials of his organization, so a bookkeeper would be alright. Although, an accountant or CPA could prove to be a strong business partner. The CPA would deliver additional insights Laurence may have not yet thought of.