
Next Generation Academy Successful story: Aleksandra Jovanovska
Next Generation Academy Successful story: Aleksandra Jovanovska While enrollment at NextGen’s Bookkeeping Academy is still active, we wanted to motivate and inspire you with the
Toni Ristovski
Founder of Next Generation Company
October 10, 2019
The benefits of having a bookkeeper and a CPA are clear. They both play a vital for the financial well-being of your business as both of them handle different aspects of a company’s finances.
In fact, their roles are so important that many businesses don’t choose between bookkeepers and CPAs and simply have both.
You’d think that having both a CPA and a bookkeeper handling your finances is redundant, but that’s where you’re wrong, and here’s why.
Bookkeepers are good at thoroughly analyzing, storing, and recording your day-to-day transactions. That includes incomes, expenses, invoices, and basically every transaction that runs through your company. They also produce preliminary financial statements on a monthly basis, provide full back-office support, and reconcile bank statements at the end of the month. Basically, bookkeepers are trained to sniff out and zero in on even the tiniest transaction to make sure no financial data is left unattended.
CPA’s, on the other hand, delve into more analytic responsibilities, like planning a tax strategy at a federal, state, and local level. They also provide assistance during audits with the IRS. CPA’s look at finances from a consulting point of view, and they also make sure all bookkeeping has been done properly.
But, if you assign your CPA to do your bookkeeping, they probably wouldn’t do a very good job. It’s not that they’re not capable of tackling the assignment, it’s that bookkeeping is not what they do best. CPAs look at the bigger picture.
They use the data compiled by bookkeepers and utilize the information to craft a thorough analysis, offer valuable insights, and allow your business to enter the future on the right financial foot. Ideally,
CPA’s should be tackling higher-level activities that provide in-depth analysis and strategic recommendations regarding your financial plan.
Making good judgments when one has complete data, facts, and knowledge is not leadership - it's bookkeeping
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It is clear that both bookkeepers and CPAs have a vital role in the financial growth and prosperity of your company. Eliminate one and your business would surely encounter financial uncertainty.
So, instead of delegating bookkeeping tasks to your accountant, why not use them both?
It is undeniable that CPA’s offer a level of expertise that only they can provide, but bookkeepers also address a very vital part of your financial planning, and having both of them complementing one another would allow you to receive the best advice for your business.
Bottom line is, bookkeepers and CPA’s should have the type of “Batman & Robin” partnership. They don’t contradict one another, yet they complete their flaws and shortcomings. Bookkeepers have that knack and eye for detail that CPA’s just can’t match, and CPA’s offer paradigm-shifting advice that can potentially turn the fate of your financial planning. In other words, bookkeepers and CPA’s should rely on one another to properly manage a company’s finances.
The good news is, bookkeepers and CPA’s are collaborating more and more frequently as many businesses realize that engaging CPA’s to do your bookkeeping is counter-productive, and vice versa.
Next Generation Company is partnering with some of the leading CPAs and Bookkeeping practices across the USA. If you are looking to change your bookkeeper or a CPA, or maybe you are looking to find a one-stop shop, reach out to us, and we will connect you to the best solution for your small business needs.
Next Generation Academy Successful story: Aleksandra Jovanovska While enrollment at NextGen’s Bookkeeping Academy is still active, we wanted to motivate and inspire you with the
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