Why a bookkeeping service instead of a CPA?
Most CPA firms don’t want monthly accounting business because even at their high rates— it is not cost-effective for them. The ones that do offer bookkeeping services generally hire bookkeepers to do the actual work, and their salaries are factored into the fees the CPA firm will charge. CPAs typically specialize in income taxes, accounting for medium to large businesses, and financial auditing services.
Why pay the CPA to pay the bookkkeeper? A bookkeeping service will be far less expensive yet provide more personal service. There are several reasons why small businesses will benefit from a bookkeeping service. They have a myriad of forms, financial reports, payroll, and other necessities that may require a bookkeeping service. If you are the owner of a small business and aren't sure if a bookkeeping service is right for you, the following five reasons may help you decide if investing in one is right for your business:
- Save your time for what you do best! You are not an accountant; you are an entrepreneur. You have a great idea for your business and have a background in your product or service. You may not be trained to do bookkeeping. Do not waste your precious time on something for which you have no training. Save your time for running your business.
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- A bookkeeping service can save you money, in addition to saving time. A competent service will know the right forms to file with taxing authorities so you will decrease the possibility of making an error. You may have to file federal forms, state forms, and/or local forms. You may have to pay income taxes or sales tax. Missing even one deadline can be costly for your business. A bookkeeping service will keep track of all of those deadlines for you, which will also cut down on your stress!
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- No more payroll worries, because with a bookkeeping service, payroll is a snap! The paperwork involved with employing workers can be cumbersome. There are payroll deductions to calculate and forms to file with tax authorities. Deadlines are often confusing. A bookkeeping service will handle all these tedious tasks for you.
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- You will never have disorganized financial files again! After a bookkeeping service has prepared your returns or statements, you will get copies of everything. These copies will be presented in an orderly manner and will be ready to file as soon as you receive them. You will not need to dig through your desk to find pieces of paper or copies. Just go to the file drawer you've dedicated to your bookkeeping files, and all of your information is available. Like magic!
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- Your bookkeeping service can become a financial partner in your business. If you need financial advice from time to time, the perfect person to ask is the one who is keeping your books. Your bookkeeping service will know the financial side of your business, backward and forward, and may be able to provide you with advice on loans, rental agreements, mortgages, or bank fees. Use the financial knowledge of your partner to help you and your business.
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Overall, a bookkeeping service can offer your small business many positives. Once you find the right bookkeeping service for your small business, you will be amazed at the time you save, the reduction of stress, and the ease in which all your finances are taken care of.
However, you absolutely need a CPA for advice beyond the bookkeeper's expertise, such as investment decisions. You will also need a CPA to prepare your corporate income tax returns. A good bookkeeping service will work very closely with your CPA in this regard.
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