Bookkeeper vs Tax Preparer (And Why You Need Both of Them)

Running a boutique can be super fun, but managing the finances? Not so much. But it’s still something that’s super important to stay on top of! Often times I’ve found that business owners are kind of confused on what the roles are of a bookkeeper vs tax preparer, so I thought I’d dig in and hopefully help provide some clarity today! 

To start, let me just say that I think there is a common misconception when people hear the word “Accountant”. Often times, I think people assume they’re a tax preparer. But, that’s not always the case! I have my degree in Accounting, so while I’m an Accountant, I don’t prepare taxes. I did for a short period, but it turns out I don’t like it. It takes a special type of person to actually ENJOY doing taxes 🙂 

So, that’s why I’ve specified bookkeeper vs tax preparer (and not accountant), because an accountant could be either! 

Bookkeeper vs Tax Preparer: The Difference in What We Do

A bookkeeper is going to be the one that help track all the daily transactions that happen in your business. Often times, we’ll get what’s called “read only” access to your bank accounts, credit cards, and payment processors so we can see how all the money moves through your business, without having to rely on you providing statements every month. We’ll then take all of this information, and organize it into your monthly financial reports for you to review and see how your business is performing. 

A tax preparer is someone who is much less involved in the day to day. Often times, you maybe only work with your tax preparer sometime between January-April to actually file your taxes, and then you say “see ya!” for another year.

Bookkeeper vs Tax Preparer: How We Work Together

I like to use the analogy of a nurse and doctor here. A bookkeeper is like a nurse. We’re the ones who visit with you first, grab all your vitals, prep you for procedures, and then provide a summary to your doctor with all the helpful & relevant information they need. 

That’s a similar relationship to a bookkeeper & tax preparer. A bookkeeper is the one gathering all of your financial information, and summarizing it into the financial statements that your tax preparer needs. They can use this information to simply file your taxes, or help you PLAN for the upcoming tax year if you choose to have a more proactive relationship with them. 

Some bookkeepers (myself included) will make themselves available to the tax preparer, so if they have questions on the financial statements, they know they can come to us directly. This helps leave the client (you!) from feeling stuck in the middle, trying to relay information between us that might get lost in translation. Just like the medical field has some unique terminology…the world of accounting does too. 

Bookkeeper vs Tax Preparer: Why You Need Us Both

So many times, I’ve heard business owners say, “I just give all my statements to my Accountant at tax time and they figure it all out for me”. 

Here’s a few reasons why I caution you AGAINST doing that:

• Tax season is busy and stressful for tax preparers. They don’t want to try and organize all your financial information from receipts & statements. They want to do your taxes. 
• They’re rushing through it. Again, they’re busy, and they’re not gonna want to take the necessary time to make sure every little detail is accurate. They’re just focused on getting what they need to do your taxes. 
• It’s not helpful for you. Your bookkeeping should be something that’s kept up with monthly so you can see how your business is performing. If you’re only doing that once a year, the numbers are outdated and useless for you to do anything with. 

By having these 2 roles separated out, you can ensure that you will always have accurate & up to date financial data to help you make better decisions, and that your tax preparer will have all the information they need so they can focus on preparing an accurate tax return for you. 

If you can’t afford a bookkeeper at this stage in your business, that’s okay! That just means that YOU need to become the bookkeeper. And you totally can! Even if you’re not a numbers person, even you can master the skills needed. 

If you want to learn more about how to feel confident in your own bookkeeping abilities, then I want to invite you to check out my free masterclass.

If you’re ready to handoff the bookkeeping to someone else entirely, then schedule a call with us today to see if we can help fill that role. You can schedule a free consult call with us here.

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Having both a bookkeeper and a tax preparer is like having a dream team for your boutique’s finances. A bookkeeper takes care of all the daily details, while your tax preparer ensures you’re on top of your taxes and financial planning. Together, we help eliminate the anxiety and confusion, so you can focus on what you do best—running a successful boutique!

Here’s to finding your own version of freedom,

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