Should Your CPA be Performing Bookkeeping Too? In the world of accounts and business management, the terms CPA and bookkeeper are most often discussed, primarily due to their significant services crucial to the business. A bookkeeper maintains a record of daily transactions and keeps a detailed track of cash flow. They maintain the general ledger, compile data, check for data accuracy, etc. The CPA, on the other hand, prepares the year-end tax filing, evaluates overall business health, creates strategies for the business, etc.
Considering the exclusivity of their functions, several companies and businesses employ two different people or outsourced auditing firms for these purposes. However, these two pillars of business converge at more than one point and have strong inter relatability for a successful business strategy and growth. It is only logical to appoint one person who has all the necessary knowledge to execute both tasks.
Doing So Eliminates Any Possibility of a Coordination Lapse
Bookkeeping and Accounting services differ in terms of their frequency yet focus on the same records for reference. An accountant preparing a year-end tax file or developing a new strategy for business funds allocation will need to have a look at the financial transactions and cash inflow and outflow as a reference point. The slightest possibility of transactions not being forwarded to the CPA by the bookkeeper or missed out details can negatively impact the business beyond comprehension. The safest way out is to have one person performing both these tasks, fully aware of the data he or she will need at the end or beginning of the financial year.
This, in turn, Improves Business Insight
Undoubtedly, a daily dose of financial information is manifolds more productive than a sudden avalanche of transactions, out of which some may be more, or less, important than others for the purpose of business planning. A CPA who performs bookkeeping for a company is fully aware of the financial health of the business and will require half the time and energy to prepare tax returns or compile year-end tax files. Their deep insight into underperforming or booming sectors or aspects of the enterprise enables them to effectively create business tax plans and future strategies.
Eventually, it is in the Business’s Financial Interests
This is especially true for a small-to-medium level business which can substantially save the cost of appointing two people for two rather converging jobs. But even for large corporate companies, this is of even more benefit.
It’s for These Reasons that Prudent Accountants Offers You These Services
Prudent Accountants devise and plan services while keeping every single business in mind. We brainstorm and analyze the possible needs and roadblocks that might hinder an enterprise’s successful accounting and work to eliminate them. Our accounting, tax planning, taxation, and other advisory services are all-inclusive and tailored according to the needs and expectations of the client, uplifting small businesses in their endeavors while amplifying the successes of well-established ones.
Reach out to us for a consultation and leave the rest to us.
