A virtual accountant or virtual bookkeeper can help make the difference with your business’s overall productivity and performance.

If crunching numbers isn’t your favorite pastime, chances are you’ll need to add a bookkeeper, accountant, or CPA to your team. Even if you’re a math wiz who gets excited about accounting software, the only way to successfully scale your business is with the help of an accounting expert.

Some companies only need help with their taxes, while others are focused on increasing their profit margins. Whatever your accounting and bookkeeping needs are, you can’t afford to hire the wrong financial professional.

If you’re trying to determine whether an accountant, CPA, or online bookkeeping services can help take your business to the next level, keep reading below!

Bookkeeper, Accountant, or CPA: What’s The Difference? 

What really is the difference between a bookkeeper, accountant, and CPA?

All accounting experts are not created equal. You should know the differences between them before deciding which one to bring on board. A bookkeeper, accountant, and CPA will all be well versed in the data that appears on your general ledger. They will all understand the ins and outs of money management, payroll, and finance. However, that’s where the similarities end.

Bookkeepers provide foundational services that every business needs.  Bookkeeping services track your day-to-day financial records, balance your general ledger, and even manage payroll for your business. While bookkeepers have professional training, they do not require a bachelor’s degree that accountants do.

If you need financial advice, accountants can provide it. They have the necessary training and expertise to analyze your financial records. In-house and virtual bookkeeping services can manage your day-to-day records, while accountants can make recommendations based on those records.

Both in-house and outsourced accounting services can help you with everything from budgeting to complex financial statements. While all accountants have the education and knowledge needed to manage money, some subtle differences make CPAs stand out from the rest.

A Certified Public Accountant, or CPA, earned their title by passing a rigorous certification exam. Like other accountants, a CPA will be able to interpret your financial statements. They also take things one step further by auditing your business.

With all of their differences, these experts also have something in common. Every business needs to consider hiring one. Whether you are just starting your entrepreneurial journey, trying to rebuild after a pandemic, or running a Fortune 500 company, somebody needs to manage the financial needs of your business.  Some may benefit from hiring more than one accounting professional. How will you determine the best choice for your business?

Is It Time to Hire a Bookkeeper, Accountant, Or CPA?

No matter the size of your company, every business has income and expenses. You need to know where every single penny of your money is going. Bookkeepers will help with that while managing your accounts receivable and payable needs. Their detailed records will make tax season a breeze.  When you have organized financial records, you can breathe easier and avoid a run-in with the IRS.

How do you know if a bookkeeper is right for your business? You’ll know it’s time to hire a bookkeeper when you can’t stay on top of your daily general ledger accounting. Keeping track of inventory, payroll, tax preparation, and invoices can be challenging while running a business. These are daily tasks that a bookkeeper can manage for you. Some companies may have more complex financial needs and consider bringing an accountant into the mix.

If you have a small business, you’ll know it’s time to hire an accountant when you’re ready to take your company to the next level. An accountant will analyze your financial data and develop strategies to help your business grow. They can create critical financial documents like profit and loss statements to secure potential lenders and investors for your business. You won’t have to worry about those complicated returns with an accountant on hand during tax season.

Many businesses could benefit from using both bookkeepers and accountants. Most accountants won’t manage your daily financial transactions.

A bookkeeper can compile and organize the detailed data that an accountant can use to create reports, documents, and strategies that will help your business evolve.

An accountant will prepare your taxes, but a bookkeeper can improve this process by maintaining all the records you need for a seamless experience.

If your business is just starting, experiencing a time of transition, or accelerated growth, hiring a CPA could be in your best interest.

A CPA will save you money by developing a foundational financial structure that will help your business avoid unnecessary costs. Whether you’re a start-up or taking things to the next level with your business, a CPA can advise you about your licensing, insurance, and banking needs. Making a mistake in any of these areas can prove to be costly.

A CPA can help you avoid those mistakes, help you conduct internal audits, and help you avoid tax liability by acting as your representative if needed. While hiring CPAs or other financial professionals will come at a cost for your business, there are affordable alternatives to consider.

How To Save Money Hiring a Bookkeeper, Accountant, or CPA

Now that you know there’s a need for at least one of these experts on your team, let’s look at the numbers. According to the Bureau of Labor Statistics, the average annual salary of an in-house bookkeeper in the U.S. is $42,410. On average, accountants make $73,560 nationwide. If that accountant happens to be a CPA, this number shoots up to $80,599. These costs may seem like a steep investment for many businesses, big and small. But it doesn’t have to be.

There’s an affordable way to meet all your financial needs without paying for an in-house accounting team. Outsourcing your accounting team can save 30 percent of other businesses’ costs.  Now more than ever, the world has embraced working with virtual back-office teams.

The key is finding professionals that you can trust with your business. Our Bookkeeping Team does all the legwork for you. We are led by CPA’s who have over 25 years of trusted experience, and have vetted high-level industry experts who are well-versed in cloud-based accounting software systems like QuickBooks and are ready to meet your accounting needs.

Whether the pandemic led to you downsizing or upsizing your business, Our Bookkeeping Team can help you improve your bottom line. This team of CPAs, ex-auditors, and virtual controllers supplies a range of affordable services like online bookkeeping, virtual controllership, and back-office support. Our Bookkeeping Team provides flexible nationwide services to accommodate your budget no matter your location. It’s time to exceed your business goals. Call Our Bookkeeping Team today at 213-468-8316 to get started.