CPS Accountant vs. Bookkeeper: Understanding the Difference
When managing business finances, both accountants and bookkeepers play crucial roles. However, their responsibilities differ significantly. Understanding these differences can help you decide which professional best suits your needs.
What Does a CPS Accountant Do?
A Certified Public Accountant (CPA) is a licensed professional who offers a broad range of financial services, including:
Tax Preparation & Planning – Filing taxes and finding legal ways to reduce liabilities.
Financial Analysis & Reporting – Preparing financial statements for business decisions.
Audit Representation – Assisting with IRS audits and compliance.
Advisory Services – Helping businesses with financial strategies and risk management.
What Does a Bookkeeper Do?
A bookkeeper is responsible for the day-to-day financial transactions of a business, including:
Recording sales, expenses, and invoices.
Managing payroll and employee payments.
Reconciling bank statements.
Preparing financial reports for accountants.
Do You Need a CPA or a Bookkeeper?
If you just need help with daily transactions, a bookkeeper is a cost-effective solution.
If you require financial strategy, tax planning, or audits, a CPA is the better choice.
Many businesses use both – bookkeepers handle daily records, while CPAs offer expert financial guidance.