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How Tax Preparers and Bookkeepers Work Together

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At Tower Books, we believe that small businesses benefit most when their tax preparers and bookkeepers work together. While these professions may seem similar, there are plenty of differences between them and a number of reasons why you would want to have both an accountant or other tax preparer and a bookkeeper. By handling different aspects of your business that are still related to each other, tax preparers and bookkeepers can work together to provide the best financial management for your business. Discover how our bookkeeping services can help your business, especially when combined in powerful synergy with the services of a certified public accountant (CPA), enrolled agent (EA), or other tax preparer.

CPAs, Enrolled Agents, and Other Tax Preparers vs. Bookkeepers: What’s the Difference?

It can be easy to get confused by bookkeepers, CPAs, enrolled agents, and other tax preparers. In general, CPAs, enrolled agents, and other tax preparers manage your taxes. They can prepare, file, and sign your taxes. In many cases, you only need to work with a tax preparer during tax season. Tax preparers can also assist you if you are audited by the IRS or need an explanation of the tax-related consequences of any significant actions, transactions, or strategies you are considering for your business. The biggest differences between CPAs, enrolled agents, and other tax preparers are simply their qualifications and specializations. CPAs, for instance, must pass a state licensing exam, whereas enrolled agents are licensed at the federal level.

By contrast, bookkeepers manage your finances on a granular level. They dive into your daily business transactions and handle your books on a regular basis. Although tax preparers and bookkeepers differ in scope when it comes to your finances, their services are closely related and can benefit one another.

Tax Preparers and Bookkeepers: The Benefits of Having Both

Because tax preparers and bookkeepers handle different aspects of your finances, there are big benefits to enlisting the services of both. Bookkeepers ensure your books are accurate and up to date, allowing you to keep track of your bills, understand your cash flow, and prepare to meet with your tax preparer. Your tax preparer can then use those clean books to prepare your taxes. If your books are a mess, however, you end up spending more time and money while your tax preparer plays catch up. Even worse, you will have missed out on having current information on your financials for however long your books have been outdated, likely leading to poorer business decisions along the way.

By enlisting the services of both tax preparers and bookkeepers, you have access to a broader range of support. Your bookkeeper will have a better understanding of your business operations and finances on a day-to-day basis, while your tax preparer can answer any questions you may have about the tax implications of your decisions. In addition, you can reduce the risk of errors by having financial professionals with different areas of expertise review your books. When these experts work together to analyze and find solutions for the same issues, the results can be astounding.

Tower Books: Your Operations and Bookkeeping Services in New Orleans and Beyond

If you’re looking for a bookkeeper to work with your tax preparer, Tower Books can help. We can get you ready to meet with your tax preparer and keep your books updated and reconciled throughout the year. We also work with your tax preparer to make it easier for everyone to meet deadlines with fewer surprises.

By using secure, cloud-based technology, we can easily work with businesses and tax preparers wherever they are located, providing bookkeeping services in New Orleans and beyond. We also have experience working with clients in a variety of industries, giving us valuable insight into the needs of small and medium-sized businesses.

Looking for more than just a bookkeeper? At Tower Books, we offer a host of comprehensive services to help you grow your business. From strategy and profitability coaching to the monthly financial statements included with all of our services, Tower Books can help your business identify opportunities, assess risk management concerns, and much more. Contact Tower Books today for a free consultation.