If you’re a small business, chances are you are wearing multiple hats. Managing money may be the most tedious job of all. You need to outsource to an Orange County bookkeeping service so you can do what you really love.
A Certified Public Accountant won’t run your business, but he or she will make things a lot easier. When you have a CPA manage your bookkeeping, you can rest assured you are in the hands of someone who has experience managing financial matters for different types of businesses. Knowing the ins and outs of proper money management, and complying with always-changing laws ensure that your business will be a success and it will stay a success.
What Does a Bookkeeper Do?
A bookkeeper handles all or the majority of your finances for your small business. He or she is responsible for day-to-day accounting procedures and tasks such as balancing and updating bank accounts to ensure that all payments and deposits have been accurately reported.
A bookkeeper is also responsible for knowing which payments need to be remitted and will make sure all the money you’re expecting to come into your business will come in, and all the money you are responsible for paying out of your business will be paid.
♣ Processing invoices, receipts, payments and other financial transactions
♣ Preparing initial financial statements
♣ Maintaining payroll
♣ Reconciling accounts and preparing reconciliation reports
♣ Managing accounts payable and accounts receivable (i.e., what you’re making and what you owe)
What’s the Difference Between a Bookkeeper and a CPA?
A Certified Public Accountant is usually experienced in many different areas and does not just specialized in bookkeeping. They also have a degree. Bookkeepers generally do not have degrees (they are not required to) and take direction from someone more educated and/or experienced.
The best thing you can do for your growing business is to hire an CPA to do your bookkeeping. Hiring an CPA to do your bookkeeping will help keep your head above water. You don’t want to be drowning in numbers while you are running your business.
Entrepreneurs who hire a professional CPA usually discover they weren’t doing as well on their own as they thought they were. Consulting with an experienced CPA from the beginning will ensure your bookkeeping is precise from the beginning. A bookkeeper may be able to keep the business running smoothly, but as a new business, it is best to hire a CPA to ensure all financial obligations are being properly executed.
A CPA will also be more up-to-date on current and changing tax laws that will affect your small business. Knowledge of the tax code is a large part of the CPA exam. With a CPA, you are guaranteed to have hired an expert on the tax code and local and federal laws. With an unlicensed bookkeeper, you may just be taking their word for it.
Tasks a Bookkeeper Won’t Do
♣ Taxation advice and planning
♣ Business establishment assistance
♣ Representation in auditing cases
♣ Corporate reporting and compliance
♣ Superannuation fund advice
♣ Financial management advice
Hiring a Certified Public Accountant is different than hiring just a bookkeeper. A CPA can do more than just help keep your records straight. He or she can analyze your business and help your business grow. He or she can help you see the big picture to ensure you are heading in the right direction towards success.
Do I Need a Bookkeeper or a CPA?
Starting out as a small business, many only need a bookkeeper. Many can even do this task themselves. As you grow, however, make sure you are working with more experienced professionals. A bookkeeper can work day-to-day tasks, but it is best to contact a Certified Pubic Accountant if you have more complex and even legal questions about your business.
If your business is growing too quickly and you need help—hire a CPA for your bookkeeping duties. If you plan on continually growing your business, your finances will get more complicated. Working with the same CPA throughout the year will ensure all transactions with the IRS go smoothly when tax season comes around, or if you’re surprised with an audit.
A bookkeeper focuses on daily, weekly and monthly tasks. A CPA can complete all those tasks as well, but can also offer a higher level of expertise with experience and opinions, rather than just filling in numbers. A CPA can provide advice and other analysis, such as year-end financial statement preparation and tax returns. Work with a CPA to make expert financial decisions.
Why Wynkoop & Associates?
Our experience with local businesses spans over 35 years offering bookkeeping in Orange County. Our expertise ensures that you comply with all federal, state and local business and finance laws and regulations while you successfully run your business.
We have the experience to ask you the right questions. Each business is different, and may be required to follow special regulations, depending on your service or the products that you sell. We can ensure all laws and regulations are complied with so the only thing you need to worry about is running your business.
Contact Irvine CPA Chris Wynkoop to discuss possible solution by calling (949) 851-1632