FAQS
What is the difference between a bookkeeper and an accountant?
The key difference between the jobs has been that a bookkeeper records the day-to-day financial transactions while an accountant has analyzed and drawn conclusions from those transactions.
Will my bookkeeper file my tax returns?
Tax Preparers have to apply for an ID number and pass IRS testing of knowledge about various tax laws and issues. They need keep up with all of the changes to taxes each year. This is something that some bookkeepers will offer . But many will instead guide you to a experienced tax preparer. If you are going to have a bookkeeper and an accountant, it would be best to get an accountant who does tax returns.
Do I need a bookkeeper or an accountant, or both?
You may need both a bookkeeper and an accountant, or you may need one or the other. It's common that business owners only consult with their accountant at the end of the year to close the books and prepare for taxes. Many home service businesses don't even have full-time accountants.
Will my bookkeeper handle the payroll?
Some bookkeepers have the specialized training or are part of an organization who can keep up with the changes to payroll taxes. However, most independent bookkeepers may recommend you sign up with a 3rd party payroll processor. You may be able to add payroll interface to your contract with an independent bookkeeper. In addition to needing the payroll reports to book payroll and tax liabilities, the bookkeeper may offer to help out with the payroll process.
I own a landscaping business and do my own bookkeeping. Is my business too small for a bookkeeper?
First let me assure you that we believe that no business is too small. You deserve to have the best opportunity to grow your business like the larger businesses. At Copat Bookkeeping we have designed a Value Plan for businesses that have low volume of transactions and it also comes with a low cost. We include a dedicated bookkeeper with each of our plans. As you get more time to focus on your business and achieve the growth that you want , we will be there for you with a new plan to handle the additional volume.
I need to hire another bookkeeper. Now I am questioning if it is time to outsource.
My vote is a definite "YES" but I may be a little bit biased. I know at least 5 benefits that should make you at least think about it. Here is a bit of teaser that may peak your curiosity. Are you aware that if you pay an employee who works 20 hours a week at $18 per hour to do your bookkeeping, it actually costs you $390.06 per week once you add in payroll taxes. However this does not include benefits that you pay such as matching 401k, Health, Dental, and Vision Insurance, Vacation time, Sick time, etc. Nor does it include the cost of office space, furniture, equipment, and technology. A Professional Bookkeeper would most certainly save you money.