Why Should You Not Depend on an Accountant for Bookkeeping?

QuickBooks Tips

The accuracy of your recorded financial transactions will be crucial for the long-term stability of your organization. After all, nobody wants to deal with the IRS and be subjugated to frequent internal audits. However, leveraging the services of accountants, at least at the beginning of your professional activities, might be overkill if you’re currently only requiring bookkeeping services. What does an accountant do on a daily basis? The primary focus of CPAs is to handle taxes and financial reports, keep your business in compliance with the fiscal regulations relevant to Texas-based companies, and dictate the financial framework necessary for your operations.

Do accountants do bookkeeping? Yes. That said, CPAs are expensive, and they typically review transactional data on a quarterly basis. Sure, their expertise is crucial when dealing with audits or when you require help with complex situations that require advanced knowledge. However, for the management of day-to-day transactions and past book reconciliations, our firm’s services will represent a better financial deal. Do bookkeepers do taxes? Usually, no. However, our team can handle the management of your account payables and receivables, work together with your CPA and payroll manager, and prepare the documentation required for surprise audits.

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What Is the Main Distinguishing Factor Between Accountants and Bookkeepers?

To keep it short, the complexity of the performed work and the overall scope of responsibilities. Certified public accountants are expected to prepare accurate and comprehensive financial statements that can dictate the economic development framework appropriate for your firm’s perspectives. Moreover, they must keep your company in line with the fiscal regulations applicable for Texas-based companies, assist with tax planning and quarterly budgeting, and conduct internal audits that could highlight issues in your firm’s internal operations.

In Texas, CPAs are required to complete a 150-hour program in accounting, pass the Uniform CPA examination, complete a TSBPA-approved ethics course, and work for at least one year under the tutelage of a certified accountant. CPAs must handle complex situations, which is why their educational and professional qualifications are more advanced than those of financial recordkeepers. Meanwhile, bookkeepers must deal with lower-complexity but more time-consuming tasks, such as the management of account payables and receivables, reconciliations between internal records and bank statements, and the ongoing achieving of financial transactions.

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The Services of a Bookkeeper Vs. an Accountant. What Should You Choose?

Ideally, you should use both. Our bookkeeping services can be utilized to manage your current or past financial transactions. At the same time, the expertise of accountants will occasionally be needed for more complex tasks that surpass our responsibilities. Accountants and bookkeepers typically handle different tasks, and their paths don’t always overlap. That said, if required, our company can assist your CPA in any way, shape, or form. It’s not a matter of choosing between a bookkeeper vs. an accountant; rather, it’s about selecting the right expertise for the tasks at hand. Do bookkeepers do payroll?

Sure, our company can assist your internal payroll manager or help with payroll integration in QuickBooks. For the second point, we will make sure your employee information and tax rates are accurately set up in QuickBooks; we will generate reports that can be leveraged in case of external audits; and, not least, we’ll work together with your CPA in the preparation of tax fillings. As for collaborations with payroll managers, our team will analyze the accuracy of your recorded payroll data, provide the documentation required for the calculation of your employee’s benefits, leverage QuickBooks to automate processes such as the generation of payroll reports and assist in the preparation of payroll audits.

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