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Certified Public Accountant (CPA) is a title that may only be used by those licensed to offer public accounting services. CPAs generally have to have a college degree in accounting, have passed a national licensing examination, and had at least one year of accounting experience supervised by a U.S. licensed CPA. In addition, practicing CPAs must satisfy annual continuing professional education requirements in their profession. 

CPAs may provide a variety of financial services, including bookkeeping, accounting, auditing, tax, management and financial advisory services. In general, CPAs provide only one or two types of services from the list above, as that allows them to concentrate on a particular service and become an ultimate expert. Small CPA firms are generally suited for individuals and small businesses. Larger CPA firms usually provide wider range of services, tend to be more expensive, and best suited for mid- to large size businesses. 

Terms “accountant” and “bookkeeper” are often used interchangeably. Unlike CPAs, accountants and bookkeepers usually don’t have licensing requirements, education requirements or work experience requirements. You might find different interpretation of both terms depending on the source you read, but in my personal experience the term “accountant” associates with a CPA, tax preparer, auditor, or management advisor. The term “bookkeeper” usually associates with financial planning, analysis, advisory, growth strategy, as well as recordkeeping, cleaning historical bookkeeping records, preparing the books for the tax filing, set up of software solutions, and general business help. 

Bookkeepers work closely with CPAs and tax preparers. They provide ongoing support to individuals, business owners, and non-profits through the whole year, cleaning up the records and making sure that financial statements are accurate. CPAs and tax preparers can also handle bookkeeping for their clients, but often they come at the end of the year, work with a bookkeeper to clarify any questions or discrepancies, and finalize financial records for tax filing.

There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don't have a professional credential. Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. However, tax professionals have differing levels of skills, education and expertise.

In conclusion, it is a personal choice of each business or individual to pick who is best suited for their needs. CPA designation provides a higher level of assurance that your books and records are handled by professionals educated and licensed in the industry. However, a professional doesn’t have to be licensed as a CPA to provide accounting or bookkeeping services. A CPA can handle issues for the business with the authorities outside of their organization, like the IRS or a court of law. A bookkeeper can only handle issues within the business.

Your Online Bookkeeping is owned and operated by a CPA, we specialize in bookkeeping and tax preparation services, providing you with the best of both worlds - the expertise of a CPA in the cost-effective manner of an accountant.

There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don't have a professional credential. Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. However, tax professionals have differing levels of skills, education and expertise.

An important difference in the types of practitioners is “representation rights.” Here is guidance on each credential and qualification:

Unlimited Representation Rights: Enrolled agents, certified public accountants, and attorneys have unlimited representation rights before the IRS. Tax professionals with these credentials may represent their clients on any matters including audits, payment/collection issues, and appeals.

Certified Public Accountants – Licensed by state boards of accountancy, the District of Columbia, and U.S. territories. Certified public accountants have passed the Uniform CPA Examination. They have completed a study in accounting at a college or university and also met experience and good character requirements established by their respective boards of accountancy. In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license. CPAs may offer a range of services; some CPAs specialize in tax preparation and planning.

Enrolled Agents – Licensed by the IRS. Enrolled agents are subject to a suitability check and must pass a three-part Special Enrollment Examination, which is a comprehensive exam that requires them to demonstrate proficiency in federal tax planning, individual and business tax return preparation, and representation. They must complete 72 hours of continuing education every 3 years. Learn more about the Enrolled Agent Program.

Attorneys – Licensed by state courts, the District of Columbia or their designees, such as the state bar. Generally, they have earned a degree in law and passed a bar exam. Attorneys generally have on-going continuing education and professional character standards. Attorneys may offer a range of services; some attorneys specialize in tax preparation and planning.

Your Online Bookkeeping is owned and operated by a CPA, we specialize in bookkeeping and tax preparation services, providing you with the best of both worlds - the expertise of a CPA in the cost-effective manner of a tax preparer.

Let’s face it – nobody starts a business because they want to do bookkeeping and tax  filing, except accounting professionals at Your Online Bookkeeping of course. But financial record keeping and tax compliance are not a “nice to have”, they are a “must have”.

Every business in the US has to have accurate bookkeeping records and file their taxes accurately, timely, and in good faith. The lack of the above could get you in trouble with the IRS, lead to fines, destroy reputation, and leave you in the dark of your business financial wellbeing. 

So what is it exactly that a CPA can do for your business:

1. Save time - have you ever tried maintaining your own books only to find yourself buried in mountains of receipts that your tax preparer charges you a fortune to sort out? Yeah, many businesses have been there. With the help of a CPA specializing in bookkeeping services, you have peace of mind that your books are maintained while you concentrate on what matters most to you – the growth of your business. 

2. Save money - as Benjamin Franklin said “Time is money”, and he couldn’t be more precise. Time is money, and every minute you spend on your own recordkeeping keeps you away from the main goal you have – making your business profitable. More than that, while you are a professional in your field, finance and accounting might not be your strong point. A CPA is trained to spot trends and patterns in your expenditures that keep you from reaching your goals.

3. Help you grow - only a small fraction of business owners with whom Your Online Bookkeeping has worked truly understand where they stand financially and what that means for the future of their business. Many business owners see money in their bank and think that they are profitable, when in reality they are on the brink of going out of business. A CPA is your ally who keeps an eye on your business spending and income, loans, money owed by your customers and to your vendors, spots trends and alerts you when your financial health is about to deviate from its intended trajectory. 

4. Ensure accurate tax filing - Depending on your business structure, you will have various tax requirements like quarterly estimated tax payments, information returns, 1099 filing for contractors, payroll tax, annual filing and more. A CPA ensures that you have accurate and timely records to file all required forms, without being overwhelmed at year end.

5. Be your ally - One of the main jobs of a CPA is to be your helper for everything finance related. My clients often seek help from Your Online Bookkeeping on topics like their personal finances, tax law, recommendations for software, automation, networking, and other business professionals. A good CPA is your go-to person, your business friend who is deeply vested in your success and will cheer you on every step of the way.

The recent pandemic disrupted many aspects of our lives. One aspect in particular was a traditional workplace. Business owners had to get creative in how they continued to serve their customers without sacrificing the quality of work. This time showed business owners and their customers globally how technology connects people and makes many tasks possible in remote conditions. The productivity metric proved that remote work is cost-effective, efficient, practical, and is here to stay. A virtual accountant can help you navigate the current remote work landscape, guide you through the necessary adjustments, save you time, and make sure that you are all set to handle business from virtually anywhere.

Some people might be concerned by the term “virtual accountant” or “online bookkeeping”, because they think that they trust their finances to a person they never meet. The truth is, Your Online Bookkeeping is much closer than an accountant at an office, your virtual accountant is always by your side, in your pocket, at your fingertips. 

Hiring a virtual accountant doesn’t always mean that you never meet them in person. Depending on your business arrangement and location, you can have a conversation with your accountant and ask them to come visit you or meet at a local co-working space. I personally encourage everyone to meet their business allies before starting professional relationships with them. Technology makes it possible even while both of you are at different physical locations. You can customize the way you video-chat with your accounting professional using such services as Zoom, Google Meet, Microsoft Teams, and others.

The bottom line is that Your Online Bookkeeping will always be there for you, no matter how busy or far you are, even if you are in a different time zone. And you never pay them for simply being at the office, you invest in results and help every step of the way on your business journey.

Depending on your unique business needs, you might want to hire a few other pros to smoothly operate your business. It can be overwhelming to pick between so many professions and designations. We put together this list of the most commonly used professionals to make your life easier:

1. Personal banker –  they will assists you in controlling your bank accounts and other financial activities. The banker is responsible for building a long-term relationship with clients to better address the specific financial needs of each individual account. 

2. Financial planner/advisor - The financial planner is one type of financial advisor, who helps companies and individuals create a program to meet long-term financial goals. Financial advisor is a broad term for a professional who helps manage your money, and as a general term includes subsets of the financial advisor group, such as stockbrokers, insurance agents, money managers, estate planners, bankers, and more. Financial planners and advisors may or may not be certified or have education requirements.

3. Registered agent - In United States business law, a registered agent is a business or individual designated to receive service of process when a business entity is a party in a legal action such as a lawsuit or summons. Depending on your state, you might need a registered agent separate from yourself or you can be your own registered agent.

4. An attorney – it is very important for all businesses to seek legal help to mitigate the risk of being sued while conducting their business. There are many options available currently, from traditional law firms to basic advice through online legal services.