[InsomnicBrain]

Hi,

I was wondering if some of you could explain to me the services between the two? Do I have the bookkeeper keep track of all my revenue and expenses for the whole year and not need a CPA? At the end of the year do I take everything my bookkeeper has on record and give it to the CPA? Is this how it works?

Thanks,

Robert

[Jerimiah]

Hey Robert,

Bookeeping is simply data entry, while CPAs work more in the strategy and protection realm. You have it right in your second example, bookeeping throughout the year, send the final data to your CPA and let them file for you. Cheers!

[hugh009]

Book keepers are also not necessarily degreed and don't have to pass the very stringent CPA exam here in the States.

[InsomnicBrain]

Thanks guys! I appreciate it!

[GuyBBY]

Your CPA will take the raw data from your business activities (provided by book keeper) and apply experience and knowledge to filing certain schedules and forms pertaining to the activities/structure your business partakes in. They also have the knowledge of how to get you the most efficient and worthwhile savings through certain ways of structuring your assets (i.e. if you max out your ROTH IRA it is pretax, therefore you would be taxed on your income minus what you put into your ROTH...which can save you money up front as the amount you invested is growing as well.)

Guy

[linkinfo]

The bookkeeper post or record all business transactions in different books of account, summarizes the books and prepare the financial stetements after which the work of the accountant or CPA starts, the CPA will do testing and analysis and give recommendation as to whether all transactions records were properly done, recommend adjustment if necessary. The CPA also assist the magement in many ways like tax savings, anlyse economic benefits of business transactions and many more.