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Joined 1 year ago
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Cake day: October 29th, 2023

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  • This is an interesting topic of what the expectation is from each party. My wife and I run an accounting shop (mostly bookkeeping) and then I do contract controller work. I’m a CPA, but have never done taxes. The gap in what clients expect knowledge wise is hard to balance. And I don’t mean from bookkeeper to CPA. Even within basic acct work that is prevalent.

    I go with the below parameters:

    Bookkeeper - I call them process accountants. Usually don’t know the debit/credit logic, but understand the system and this is a deposit, check, etc. Books should be at least 60-70% accurate with some accruals, prepaid type stuff likely being cash basis. Likely don’t understand the ins and out of payroll but can process it. Don’t know much about taxes.

    Accountant - Books should be 90%+ correct. Could answer most questions from an average small business. Provide increased clarity into the financials vs printing out a P&L and sending via email. Can handle payroll ins and outs and can talk to a CPA about taxes intelligently.

    CPA - in theory all the above. I’ve found they’re a little lazy when it comes to the pure accounting work, but they should be able to handle tax stuff and the above.