Can a virtual bookkeeper work with my local CPA at tax time?
Absolutely. This is how most small business bookkeeping works today, and honestly it tends to work better than the old way of dropping off a box of receipts at your CPA’s office in March.
With cloud-based accounting software like QuickBooks Online, your bookkeeper and your CPA can both access your company file from anywhere. Your bookkeeper maintains the books throughout the year, and when tax time comes, your CPA logs in and has everything they need. Clean financials, categorized transactions, reconciled accounts, and reports ready to go. No USB drives, no emailing spreadsheets back and forth, no confusion about which version of a file is current.
Here is what that handoff typically looks like in practice. Your bookkeeper closes out the year by making sure all transactions are categorized, bank and credit card accounts are reconciled through December, and the financial statements are accurate. Then they either invite your CPA to the QuickBooks file directly or export the reports the CPA requests. Most CPAs want a profit and loss statement, a balance sheet, and sometimes a general ledger or trial balance. Your bookkeeper can also answer any questions the CPA has about specific transactions or account balances.
The key is that your bookkeeper and CPA are on the same team even though they handle different pieces of the puzzle. The bookkeeper keeps the books accurate throughout the year. The CPA uses those clean books to prepare your tax return and provide tax planning advice. When the books are a mess, your CPA spends billable hours sorting through problems instead of focusing on tax strategy. That costs you more money and often means missed deductions.
Many of our clients at Speak Easy Financial Services come to us specifically because they have a CPA who told them to get their books in order before tax season. Catch-up bookkeeping to clean up months or years of backlog and then hand organized financials to a CPA is one of the things we do most often. We work with CPAs across Jacksonville and beyond because the tools make geography a non-issue.
If anything, working with a QuickBooks ProAdvisor in Jacksonville who manages your books virtually gives your CPA a better experience than what most of their clients provide. Instead of a shoebox full of bank statements, they get professionally maintained books that are ready for tax preparation. Your CPA will thank you for it.
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More Questions
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A controller focuses on the accuracy and integrity of your financial records. A fractional CFO uses those records to guide strategy, forecasting, and business decisions.
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Separate service revenue from installation revenue and track job costs on larger projects. Your chart of accounts should reflect how your business actually operates, with distinct revenue streams and cost tracking that shows profitability by type of work.
Read answerI haven't done my books in two years—where do I even start?
Start by gathering your bank and credit card statements for the full period you're behind. From there it's a matter of entering transactions, reconciling accounts, and producing financial statements your CPA can use to file back taxes.
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Separate every revenue stream in your books, use a dedicated business bank account, and track cash and tips daily. Salons have unique tracking needs because of multiple income types and high cash volume.
Read answerHow often will I hear from my virtual bookkeeper?
It depends on the bookkeeper, but you should expect regular monthly communication at minimum. A good virtual bookkeeper is reachable when you have questions and proactive about flagging issues instead of waiting for you to ask.
Read answerWhat's the difference between bookkeeping and accounting?
Bookkeeping is the daily recording and organizing of financial transactions. Accounting is the analysis, interpretation, and strategic use of that data. Most small businesses need both, but they serve different purposes.
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