Hiring guides

Bookkeeper vs. CPA: Who Does Your Sacramento Business Need?

If your books are months behind and your tax preparer is asking for reports, start by asking who'll bring the records current. That work needs an owner before the next handoff can happen.

A bookkeeper typically handles the ongoing transaction records and reconciliations within the agreed scope. A CPA is a licensed professional whose services may include accounting and tax work. Some firms provide both. Choose around the specific work you need and verify the person's qualifications for that work.

Start with the unfinished task

Write down what needs to happen next. “I need accounting help” leaves room for assumptions; “I need January through September reconciled before my tax preparer can finish” gives a firm something to assess.

For recurring bookkeeping, ask about transaction categorization, reconciling accounts, and preparing regular reports. If you also need invoicing or bill payment, name those tasks separately. A bookkeeping package may leave them with you.

For a tax question, ask for someone with relevant tax expertise. Tell them the question and the deadline. A software certification or a bookkeeping service description doesn't answer whether that person can advise on your particular tax situation.

What does the CPA credential tell you?

The California Board of Accountancy says a California-licensed CPA has met the state's education, examination, and experience requirements. You can use its license lookup to check a person or firm, including the Board's guidance on out-of-state practitioners.

The credential still leaves a practical question: does this person offer the service you need? Ask about their experience with your kind of business and who'll perform the work. A firm may have separate people handling monthly bookkeeping and tax engagements.

Tax help can involve an enrolled agent too

An enrolled agent is another credential to consider for federal tax work. The IRS explains that enrolled agents are licensed by the IRS, while CPAs are licensed by state boards. It lists both, along with attorneys, as having unlimited representation rights before the IRS. See the IRS guide to preparer credentials and qualifications.

Ask the provider to explain the credentials relevant to your engagement, any separate state requirements, and what representation or follow-up support is included. Preparing a return and answering a later notice may involve separate scopes and fees.

Get the 2 sides talking before year-end

If you hire a bookkeeper and a separate tax professional, make the handoff explicit. Ask both what information they need, in what format, and by when.

• Which date will the books be current through?
• Who resolves unanswered transaction questions?
• Who provides the reports and supporting schedules?
• Who records the tax professional's adjusting entries in the books?
• How will each person know the handoff is complete?

Agree on permission before anyone shares records. Keep a copy of the final reports and ask which version everyone is using. Otherwise, an adjustment can land in one person's spreadsheet while the accounting file keeps showing the old number.

One firm or separate providers?

One firm can give you a single place to coordinate the work. Ask whether bookkeeping and tax work are included in the same engagement and who handles each part.

Separate providers may suit you if you already have a tax professional you trust or need a particular bookkeeping specialty. Confirm that both will cooperate on the handoff and whether that coordination is included in their fees.

For audited or reviewed financial statements, tell the prospective CPA exactly what the lender or other recipient has requested. Have the firm confirm its qualifications and engagement scope before you assume ordinary monthly reports will satisfy the request.

Use the bookkeeper selection guide for monthly-service questions. When browsing the Sacramento directory, confirm services and credentials directly with each provider.

This is general information for choosing a provider, not individualized accounting, tax, or legal advice.

Questions business owners ask

Can a CPA do bookkeeping?

Some CPA firms offer bookkeeping. Ask whether the service is available, who performs it, and whether it's part of the proposed engagement.

Do I need a bookkeeper if I already have a tax preparer?

Check who maintains the books between tax engagements. If that work sits with you and you want to delegate it, ask your tax preparer whether they offer it or can work with a separate bookkeeper.

Is a bookkeeper automatically qualified to prepare my taxes?

A bookkeeping title alone doesn't establish tax-preparation qualifications. Ask about relevant credentials and experience, applicable requirements, and the precise scope of the tax engagement.