Bookkeeper Vs Accountant Vs CPA: Who Do You Need?
Every small business owner remembers their first major financial decision point – that moment when managing the books starts keeping you up at night. Maybe you're drowning in receipts, scratching your head over tax questions, or just have that gut feeling you're leaving money on the table. If you're nodding along, it might be time to bring in the pros. But here's the million-dollar question: do you need a bookkeeper, accountant, or CPA?
Think of these financial pros like leveling up in a video game – each one unlocks new powers and abilities. Let's break down the differences between a bookkeeper vs accountant vs CPA and when you might need each.
Bookkeepers: Your financial record keepers
Bookkeepers handle the day-to-day finances for a business. They handle:
Keeping track of every dollar coming in and going out of your business.
Making sure bills get paid and you get paid (accounts payable and receivable).
Running payroll and keeping employee payment records straight.
Making sure your bank statements match your books.
Creating the basic reports you need to keep tabs on your business.
You probably need a bookkeeper when:
Basic bookkeeping is eating up too
You're dealing with more than 100 transactions each month.
You've got employees and payroll to deal with.
Your receipt pile is getting out of hand.
Accountants: Your number crunchers
Accountants take all that organized data and turn it into useful information. Think of them as your financial translators. They're great at:
Taking those numbers and telling you what they actually mean.
Setting up systems to keep your finances running smoothly.
Creating detailed reports that help you make better decisions.
Giving you the heads up on tax stuff before it becomes a problem.
Looking at your numbers and suggesting smart money moves.
It's time for an accountant when:
You need a pro to set up your accounting system the right way.
Those financial reports might as well be written in hieroglyphics.
You need help planning for the future and creating solid budgets.
Tax season starts feeling really complicated.
CPAs: Your strategic financial advisors
Certified Public Accountants (CPAs) CPAs are like the all-star team of the financial world. They've passed some seriously tough exams and have to keep learning to stay certified. They can help with:
Next-level tax planning and prep that could save you big money.
Official financial statements that banks and investors love.
Strategic advice to help your business grow.
Going toe-to-toe with the IRS if needed.
Bringing deep knowledge about your specific industry.
You'll want a CPA in your corner when:
Your taxes involve multiple states or get super complicated.
Someone (like a bank or investor) needs official financial statements.
You need help making big financial decisions.
You're thinking about buying or selling a business.
Following all the rules and regulations is keeping you up at night.
Finding your perfect financial match
Choosing the right financial pro depends on a few things about your business:
How big and complicated it is.
What your industry requires.
Where you are in your growth journey.
What you can afford to spend.
Where you want to take your business.
Most businesses start with a bookkeeper and level up as they grow. Some need the whole squad, while others might just need one or two pros on their team.
How Archer Lewis can help
We've got your back whether you need basic bookkeeping or full-service CPA support. We can take a look at your business and help figure out exactly what you need. And as your business grows we'll grow with you.
Discover how we can support your financial management needs.