Bookkeepers, accountants and certified public accountants, all work with businesses' financial data. Bookkeepers record when a company receives, pays or owes money. Accountants provide more in-depth analysis than bookkeepers. A CPA or certified public accountant is an accountant with a state license.

The primary duty of an accountant is to prepare financial records and ensure that they are correct. Some of the specific duties of an accountant include the following: Prepare tax returns. Make sure that the company's financial statements comply with state and federal laws. Make recommendations to management on ways to decrease costs and increase income. Prepare reports to explain their findings to upper management. Meet with private clients to provide financial advice

In business, you want to maintain an exact record of every cent you earn and spend. That includes maintaining careful records when it comes to employee payroll, accounts receivable, purchases, and other expenses. You will need all that information to determine how well your company is doing financially. You will also need receipts and bank statements to file your annual income taxes for your small business. That means a decent amount of record-keeping, which will only increase as your company grows over time.

What is deductible can change in any given year. The IRS is constantly revising and updating the tax codes. That is just one of many reasons why retaining the services of an outside accounting for both regular accounting/payroll and taxes is a good idea. Your accountant will be up-to-date on what can and can’t be written off, and can help you maximize the potential benefit of your purchases and expenses when you’re filing your taxes. Generally, purchases and expenses deemed necessary can be treated as tax deductible.

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

In most cases, the answer to this question is “yes.” When you consider how many hours you or another member of your staff will spend on record keeping, accounting, payroll, and taxes, it can often be more cost-effective to hire an outside professional for accounting and tax needs. Additionally, a professional services offers greater peace of mind than doing it in-house and relying on your cursory understanding of accounting and some complex, overpriced accounting software for all your needs. Contact us today!

Every situation is different, and no two companies are the same. I provide premium services at a reasonable price. Please contact me to discuss pricing in detail.