Rachel Siegel poses in front of a bigs sign that reads Q&A. She's here to answer your questions.

Does my business really need a CPA and a bookkeeper?

Great question! Yes. You need both a CPA or EA and a bookkeeper. Why? Because tax preparers and bookkeepers handle different aspects of your finances, there are big benefits to enlisting the services of both. 

Bookkeepers ensure your books are accurate and up to date, allowing you to keep track of your bills, understand your cash flow, and prepare to meet with your tax preparer. Your tax preparer can then use those clean books to prepare your taxes. If your books are a mess, however, you end up spending more time and money while your tax preparer plays catch up. Even worse, you will have missed out on having current information on your financials for however long your books have been outdated, likely leading to poorer business decisions along the way.

By enlisting the services of both tax preparers and bookkeepers, you have access to a broader range of support. Your bookkeeper will have a better understanding of your business operations and finances on a day-to-day basis, while your tax preparer can answer any questions you may have about the tax implications of your decisions. In addition, you can reduce the risk of errors by having financial professionals with different areas of expertise review your books.

My financial planner says I should really be working with a CPA on tax planning. Can’t one person do both?

Your financial planner is right, and here’s why: With tax laws and regulations constantly changing, it can be difficult for financial advisors to stay up-to-date and provide their clients with the most robust tax strategies. This is why partnering with a tax planning CPA can be a valuable asset for financial advisors.

Tax planning proves to be a very important aspect of wealth management for clients. Did you know that: A whopping 80% of investors think that their financial advisors should focus on minimizing their taxes?! But that’s not really their job. 

Their job is to help your money grow in the most efficient way possible. By working alongside a CPA, financial planners can ensure that their client’s investments are structured in the most tax-efficient way possible. 

By working together, it’s a win-win for the client.

Did you know…
A whopping 80% of investors think that their financial advisors should focus on minimizing their taxes. But that’s not really their job.  

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