Maintaining a well-managed accounting is very vital in every business, no matter how big or small it is. A well- managed accounting means that you can monitor your profit, grow them and make effective financial and business strategies. There are two ways that businesses use in managing their accounting: through CPA firms or availing outsourced accounting services. But who should handle your business’s accounting?
In this article, we will discuss the basics of CPA firms and outsourced accounting services and their differences for you to decide which will be better for your business.
Know about CPA Firm & Outsourced Accounting Services
1. CPA firms
CPA firms primary focus is compliance with important requirements, such as IRS, taxes, audits, advisory services etc- however, they don’t focus on bookkeeping that much. Some CPA firms provides bookkeeping services by having a single bookkeeper who does all of the accounting duties and a CPA who will review the bookkeeper’s performance. They will also do a write-up bookkeeping however, it’s not the best way to get updated financial information for your business. Example: Affluent CPA is a CPA Firm.
2. Outsourced Accounting Services
Compared to CPA firms, outsourced accounting services are flexible- businesses who avail their services are allowed to choose types of options that are suited to them. For example, for those businesses with in-house employees, the outsourced accounting services team may assist them like doing the month-end close process of credit reconciliations, etc. They also provides resources that are dedicated to your businesses.
CPA firms vs. Outsourced Accounting Services
The first difference between a CPA firm and Outsourced accounting service is that CPA firms focus more on compliance while outsourced accounting services focus on reliability. CPA firms ensure you that all things that need to be done will be done in order to comply- such as requirements for IRS, tax preparation etc. For outsourced accounting services, they provide you the numbers and it’s up to you on how you will handle the financial information to make more effective data-driven strategies.
The second difference is that CPA firms usually work with a bookkeeper to do the accounting duties in a business. Also, a CPA firm doesn’t offer a real-time controller who will supervise or guide the bookkeeper and responsible for solving issues with the accounting. For outsourced accounting services, they provide the business with several options from their services to cater to their needs. They also provide accurate and latest financial reports to help the business improve their performance.
Last but not the least, most CPA firms don’t invest time and money to train their staff in the usage of the latest software such as QuickBooks. For outsourced accounting services, they ensure that their staffs are well trained in using the latest accounting software to serve their clients.
Conclusion: Who should handle your accounting?
The bottom line here is that it all depends on what state your business is in. If you think that your business needs more compliance with requirements such as IRS, then a CPA firm is right for you. But, if you only have a bookkeeper and in need of reliability, then an outsourced bookkeeping service is the right one for your business. Deciding which is which might be difficult, but it only takes slow and good planning to choose the best for your business.
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