Bookkeepers VS Accountants (and why you need both)
Bookkeepers and accountants are both number experts, so it can be easy to think "ehhh I don't need both". Well... Having both is a game-changer in business when it comes to your financial foundations, so let's talk about why.
The Role of Bookkeepers
Bookkeepers manage the day to day financial information of the business. They also watch for trends and identify areas where adjustments can be made to help you save more (or maybe allow you to give yourself a bonus or increase your pay). A good bookkeeper will help you understand exactly what is going on in your business in order to make decisions that will increase your profits. As bookkeepers, we're in the day-to-day of your business. We're hands on, tracking every transaction, and making sure everything's in place and set up for success.
Here at Profit Priority, we also value education and empowering our clients. So we go over your reports with you monthly, with a custom Loom video. Our clients also have a private Slack channel with our CEO, strategist, and your head bookkeeper. That way, if any questions come up throughout the week or month, you have a place where you can get them answered. It's like having a finance expert on speed dial (yes please).
The Role of Accountants or CPAs
Accountants are going to build off of what the bookkeeper has done. If you hire a CPA to do your taxes and your books aren't up-to-date...chances are they have a bookkeeper on hand to help them do it, but you'll be charged the accountant's rates. Note: if you're looking for a good CPA, DM us on Instagram or email hello@profitpriority.co and we'll send you our recommendations).
Accountants look at the financial data of the company (prepared by the bookkeeper) to create tax strategies and plans that makes sure the business owner isn't paying too much in taxes and that they are in good standing with the IRS. They're also the ones who can help you actually file your taxes. As a bookkeeper, we don't do that.
Still not understanding the difference?
The way we like to explain it is to think about the medical field. Doctors (pediatricians, OBGYNs, etc), nurses, whatever the role. They've all gone to medical school and are experts in their field. But their roles are definitely different, but we need them all. ALL of their roles are valuable and essential. But... they have different areas of expertise. Same with bookkeepers and accountants.
If you'd like more information on this, we had a guest on the Profit Priority Podcast to talk allllll about it. Listen to that episode with Kimberly Tara, CPA here.
