Romy Taormina

Psi Bands - Nausea Relief Chief/Co-Founder
Pacific Grove, CA

    CPA vs Bookkeeper

    August 25, 2009

    At Psi Bands, we recently had a coaching session on financials. In that conversation, we learned something that was surprising to us…that CPAs look in the past and book keepers look towards the future with an eye on the past. The light bulb went off for us.


    We have been using a CPA. We thought they were more equipped to help us review our numbers, but what we really need is a book keeper with a great deal of experience in helping to review our numbers, project for the future, and do some serious projections and analyzing.


    We need to be looking forward and the best way for us to accomplish this is to make a switch. So, we are.


    Our book keeper’s responsibilities include the following tasks:

    • Create and mail/email invoices  
    • Monitor outstanding invoices
    • Post payments
    • Apply early pay discounts
    • Post and manage deposits
    • On a regular basis prepare and send an A/R report
    • Twice a month prepare and send an A/P report
    • Pay vendor invoices – cut checks (signing authority to remain with biz owners)
    • Review the numbers and make recommendations around categories with regards to tracking projects, ad revenues generated by marketing efforts, shipping etc.
    • Prepare monthly financials
    • Create proformas
    • Create reports as needed
    • Prepare payroll
    • Provide tax suggestions throughout the year


    Our CPA will be used to help with filing taxes and misc. questions that arise during the year.


    In addition to the benefits that the book keeper will afford us in planning for the future, we will also be saving money in monthly fees because book keepers charge less than CPAs.


    I will be meeting with our book keeper weekly in person in addition to email/phone. It is critical that we are intimate with our numbers. They become our friend. 


    Suggestion: hire a book keeper that is bonded so that you are insured against fraudulent acts.

    P.S. If you are a CPA, I welcome your thoughts on how to maximize our time/money with our CPA.

    Read Romy's other blog entries >

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