Distinct Differences in Financial Management Roles.
While all roles are vital in business financial management, there are distinct differences.
This role is often task oriented Bookkeeping is data entry and coding, ensuring that the accounting system, spreadsheets and databases are populated with the correct data, coded to the right accounts. A bookkeeper is responsible for accurately recording transactions, including accounts receivable, accounts payable, inventory, and (sometimes) payroll, and providing reports on a monthly, quarterly, and annual basis. Pays sales taxes and does 1099's and 1096 form at the end of the year. But they don't analyze the reports or give tax advice.
Accountants are a level up from bookkeepers. Accountants' goals revolve around managing accounts, reconciling invoices, and handling month- and year-end close, ensuring that financial statements are accurate, meaningful, and timely. They prepare detailed financial statements, perform audits of the books of public companies, and they may prepare reports for tax purposes. They have no standing with the IRS in the matter of signing tax returns or representing clients during tax audits. They also understand the inter-working's between the financial statements (Balance Sheet, Profit and Loss, Statement of Equity and Cash Flow).
A CPA is an accountant who has passed certain examinations and met all other statutory and licensing requirements of a state to be certified by that state. In addition to preparing and reviewing financial statements, CPA's also prepare tax returns for businesses and individuals, sign tax returns, and represent taxpayers before the IRS.
If your small business isn’t yet at the point to hire a full-time staff to manage the financial functions, there are many benefits to outsourcing and part-time bookkeepers, accountants and CPA’s available to assist with your business financial needs. Contact Triple S Bookkeeping today to see how our accountants can help in your financial needs.