Regardless of the size of your law firm, it is critical to ensure the financial accuracy of daily transactions and use that data to make decisions for the future. As your practice grows, employing the services of a financial professional may be essential to your success. The question is, how do you know which one will best fit your needs?
People often ask me, “What is the difference between a CPA, EA, Accountant and Bookkeeper?”
While these titles are often interchangeable, the fact is financial professionals are not all equipped to provide the specific services your firm requires. For example, some CPAs do not file tax returns and some bookkeepers do not understand budgeting and forecasting. To ensure you find the right fit, it’s crucial to 1) clarify what kind of support you are looking for and 2) ask what services and expertise the professional provides.
These general descriptions will help you narrow down your choices:
Certified Public Accountant (CPA): In addition to preparing and filing tax returns, a CPA provides services such as financial planning, tax strategies and auditing. Some CPAs also offer bookkeeping services. It is important to note that because licensing for CPAs is at the state level, they can only practice public accounting in the states in which they are licensed.
Enrolled Agent (EA): Enrolled agents are tax specialists who can help with tax planning and prepare and file tax returns. Some EAs also offer bookkeeping services.
Accountant: These individuals are not necessarily CPAs or EAs. They may not offer tax advice, but generally have a bachelor’s degree in accounting (or similar degree) and have a working knowledge of how to organize and record financial transactions, analyze financial statements and prepare budgets and forecasts.
Bookkeeper: A bookkeeper’s role is generally to record transactions and keep financial records organized. They may or may not hold a bachelor’s degree in accounting and are typically not required to have any formal credentials or licenses. Some bookkeepers have working knowledge of analysis, budgets and forecasts but may not have their accounting degree; or their state may not allow them to use the title of Accountant if they do not have their CPA.
At Main Accounting Services, we fall into the “Accountant” category.
Every member of our team holds a bachelor’s degree in accounting (or a similar degree). We are skilled in basic bookkeeping, well equipped to handle law firm and trust accounting, and can create budgets and forecasts.
Tracking and analyzing financial transactions provide a solid foundation on which to make day-to-day decisions and plan for growth. Enlisting the help of skilled professionals is a wise investment in your firm’s future. If your 2025 plans call for expansion, increased profitability and the peace of mind that comes with having professional partners to assist with your accounting functions – click here to schedule a consultation.