Velan Bookkeepers Manage Books Worth Over $1 Billion Velan is in the 17th Year of Business Offering Accounting & Bookkeeping Services Velan Delivers Outsourced Bookkeeping & Accounting Services to Clients Nationwide Velan Offers Accounting & Bookkeeping Services to Small, Medium to Fortune 500 Companies Velan Bookkeepers Have Expertise in Multiple Software Platforms Including QuickBooks, Xero, Sage, FreshBooks, Myob & Accounting CS Velan Offers Bookkeeping Services to Clients in Various Industries Including CPA Firms, SMEs, Retailers, Non-Profit Organizations, Real Estate & Property Management.

CPA Bookkeeping

What Are the Benefits of Outsourced Bookkeeping for CPAs?

Posted on 17/05/2023

Outsourced bookkeeping for CPAs has grown in popularity owing to a variety of variables. With the rising pressure on businesses to remain competitive and efficient, many are turning to outsourcing to assist them in managing their financial operations. CPAs may focus on more strategic, high-value work, such as evaluating financial data and offering professional advice to their customers, by outsourcing their bookkeeping responsibilities.

Outsourcing bookkeeping for CPAs also allows them to use the most up-to-date technology and best practices, which may help them optimize their workflow and enhance productivity.

Outsourcing accounting is a low-cost and efficient method that may assist CPAs in better serving their clients and growing their businesses.

Outsourced bookkeeping services have risen in popularity among worldwide CPAs and mid-level accounting businesses during the previous decade. This is because every CPA company today wants to employ CAS (Client Accounting Service) to boost their profitability and grow their practice. By outsourcing normal bookkeeping, CPA firm owners and partners may focus on high-billing services rather than spending time on basic bookkeeping.

Outsourced bookkeeping services enable small and medium-sized CPAs and accounting companies to provide quality service to their clients while meeting deadlines without becoming exhausted. Furthermore, many of them have the option to deploy additional resources during tax season without overhiring and incurring a fixed cost on their profit and loss statement. However, many CPAs and accounting companies are still hesitant to outsource bookkeeping services because they are unsure how to go about recruiting offshore accounting or bookkeeping personnel.

Velan will give recommendations for hiring the finest accounting outsourcing firm in India as well as the benefits of outsourcing bookkeeping services in this blog.

Let’s get down to the point: how to outsource bookkeeping for CPAs!

Why is outsourcing bookkeeping a better option?

  • It saves valuable time.
  • Focus on the main core activities of the CPA firms.
  • Reduction of pressure when the workload is more.
  • To increase the bookkeeping accuracy.

What exactly is bookkeeping outsourcing for CPAs?

Outsourcing is defined as one company signing an arrangement with other firms or agents to undertake particular activities within a specified time frame in exchange for payment.

Companies that outsource Certified Public Accountants (CPAs) are well aware that they must provide full-service bookkeeping and accounting services to their clients following their needs.

Clients continually want you to handle their accounting tasks for them; therefore, as a Certified Public Accountant, you must manage your clients’ accounting services efficiently while also providing efficient resources to generate better profit.

Outsourcing bookkeeping is both advantageous and profitable for businesses because accounting is not often the major source of revenue. To increase profitability, they must focus more on their core competencies and outsource non-essential services such as accounting.

Typically, CPAs are entrusted with a lot of responsibilities, some of which are:

  • Ensure an accurate depiction of the accounts and support the client by setting up compliance and controls.
  • Adopt cost-cutting methodologies to excel in the accounting profession.
  •  Develop and sustain their own business, cut down the cash cycle, and increase the ROI.

So, what do you think CPAs should do to be able to manage everything efficiently? Outsource? Yes!

How does outsourced bookkeeping work for CPA firms?

CPA [Certified Public Accountant] businesses have extensive accounting duties. They work hard to meet the financial goals of corporations and people methodically. Bookkeeping is one of the non-core yet vital functions of CPA companies. This activity serves as the foundation for CPA companies, around which everything else is built. These businesses undoubtedly require skilled bookkeepers who can provide this service in a more efficient and precise manner.

There are three types of organizations that handle these types of services.

  • Independent Bookkeepers

You can find independent bookkeepers on freelance websites and similar sources. Freelance bookkeepers can be expensive, and yet the quality can drastically vary from one individual to another.

  • General Accounting Firms, or CPAs

CPAs and similar organizations follow the best practices in the industry. They adhere to most standard procedures to remain high-quality service providers.

Offshore bookkeeper companies are located in India and other countries where it costs less to hire such service providers. This allows offshore bookkeepers to offer more affordable fees for bookkeeping.

Outsourced Bookkeeping for CPAs

The Benefits of Outsourced Bookkeeping for CPAs

Outsourcing bookkeeping services refers to the practice of leasing accounting activities to individuals from other organizations or institutions that are not affiliated with the business in return for a fee. Many CPA firms outsource their accounting operations and benefit from our CPA bookkeeping services.

  •  Cost Efficiency

When you outsource your accounting needs, you save money that would otherwise be spent on hiring permanent accountants to handle tasks such as bank reconciliation, accounts payable, accounts receivable, payroll, and so on. You just pay for the services you receive, boosting your company’s profit margin. You also do not need to employ and train QuickBooks bookkeeping service accountants. Our job-specific teams are in charge of this.

  • Better Time Allocation

When you outsource your bookkeeping, you have more time to boost your company’s efficiency. CPAs may outsource bookkeeping while focusing only on producing efficient work. Our certified QuickBooks experts can ensure that all of your bookkeeping is performed correctly and on schedule.

  • Daily Monitoring

We can give thorough progress reports on your bookkeeping tasks. Our customers’ dedicated bookkeeping staff keeps track of each project from the concerned organization. When you outsource your bookkeeping services, you won’t have to worry about task completion.

  • Best Bookkeeping for CPAs

We have the finest bookkeepers who have worked in diverse areas of outsourced bookkeeping for CPAs for several years, making them more qualified to offer varied services to your clients. You gain the full benefit of giving the best services to your clients by harnessing the talents of our outsourced staff. We are a one-stop service provider for all of your CPA accounting and bookkeeping outsourcing requirements.

  • Availability of advanced software

We equip our bookkeepers with the most advanced, up-to-date software, which many organizations can’t afford due to its high cost. You can get access to all this software and its benefits by outsourcing only your bookkeeping services. working with Xero, Quickbooks, Sage, Netsuite, Reckon, and much more.

  • Trustworthy Bookkeeping

We will operate under the supervision of our operational head and will never contact end clients without your prior authorization.

  • Scalability is excellent.

Keeping a large in-house accounting team sometimes results in cost and personnel issues for CPAs and mid-sized accounting firms. Outsourced bookkeeping services in India will help you avoid hiring-related issues while also saving money on renting space, infrastructure, and office supplies. This allows CPAs and mid-sized accounting businesses to expand easily and affordably. This implies that you may easily develop your accounting and bookkeeping firm. There you have it!

  • Increased Precision

CPAs can benefit from outsourced accounting services to retain proper financial records. Bookkeepers are taught to pay attention to detail and to guarantee that all financial data is entered accurately and on schedule. This can help prevent mistakes and ensure the accuracy of financial accounts.

  • Increased Security

Outsourced bookkeeping services also improve the security of a CPA’s financial information. To secure sensitive financial information, bookkeeping businesses have strong security processes in place. Data encryption, access limits, and frequent backups are examples of such procedures.

  • Client satisfaction has grown.

CPAs may provide better service to their clients by outsourcing bookkeeping. Clients are more likely to be happy with their CPA’s services if their financial records are accurate and timely reported. This can result in improved customer loyalty, repeat business, and referrals.

Many CPA firms are reaping the benefits of outsourcing accounting services and focusing on growing profit margins while providing excellent accounting services. You are also cordially encouraged to join our renowned clientele. Get the best accounting outsourcing services for your new venture.

How to Outsource Bookkeeping Services?

Are you prepared to outsource your bookkeeping? Here’s a step-by-step procedure:

  • Step 1: Prepare the Company for Outsourcing

Make sure your small business is prepared to outsource its bookkeeping. You might begin by determining how outsourcing can help you achieve your company’s goals. Pay close attention to the most significant details and document every stage of the process.

  • Step 2: Examine all of your options carefully.

It’s not always simple to discover a reliable outsourced bookkeeping service. Examine your options and seek out a firm that utilizes an accounting program you’re familiar with, has great user ratings, and has been in the industry for a while.

All outsourcing organizations have distinct characteristics, yet they differ in a variety of ways. When outsourcing bookkeeping, it’s wise to make a list of pros and cons for each company so you know you’ve made the right decision.

  • Step 3: Speak with the Bookkeeper

When you locate an appropriate bookkeeping solution, make sure to interview the individual before hiring them. Most business owners complete the contract quickly and frequently overlook key details, only to discover the drawbacks when it’s too late.

  • Step 4: Organize the Process

Set up connectors and link the accounting software, financial accounts, bank statements, balance sheets, and other information you’ll need to communicate with your local, virtual, or in-house bookkeeper and your account manager.

  • Step 5: Delegate bookkeeping to the bookkeeper.

Once the system is up and running, it is critical to give the new bookkeeper the freedom to execute their job. Don’t be concerned about financial reporting, payroll taxes, accounting responsibilities, or the difference between offline and online bookkeeping. You’ve made your decision, and now it’s time to relax and enjoy having a professional account manager and bookkeeper work for you.

Terminology for Outsourced Bookkeeping for CPAs

Before we proceed, we’d like to define three concepts that will influence the choice you make. Each has advantages and disadvantages.

  • Offshoring:

Moving company operations and your in-house accounting staff to another nation, often one with a cheaper labor cost structure, is the goal here. What distinguishes outsourcing is that you effectively retain complete control over financial data processing, which may be appealing if you provide client accounting services. When you offshore, you hire someone in another nation who becomes your “employee.”

  • Outsourcing:

This is when you hire a third-party business to manage your financial data for you. You put your faith in this organization to manage the accounting data in the manner they think is proper, with the work being completed by individuals they feel fit. Outsourcing does not have to take place in another nation. Here, bookkeeping tasks are outsourced to an organization, and they divide the job however they see fit.

  • Onshoring:

The process of reassigning an accounting department’s responsibility to another city or area within the same nation is known as onshoring. Those who do not wish to deal with linguistic and cultural issues, as well as foreign policies, typically use freelancers or outsourced teams from inside their nation.

Reasons for Outsourcing Bookkeeping for CPAS in 2023

CPAs should take a careful look at how they handle their bookkeeping activities. Because of the constantly changing corporate landscape, it is more vital than ever to consider outsourcing bookkeeping responsibilities.

  • Outsourcing bookkeeping work has long been a viable option for CPAs, but the benefits will be much more obvious in 2023.
  • Outsourcing accounting may have a variety of benefits that can assist CPAs in navigating the present corporate climate, ranging from cost savings to enhanced efficiency.

Outsourcing bookkeeping for CPAs can have numerous other benefits in addition to cost savings and enhanced efficiency. Outsourcing accounting for CPAs, for example, can assist in increasing financial statement accuracy, financial reporting timeliness, and overall financial data quality. When all of the advantages are considered, it is evident that outsourcing bookkeeping activities will be more significant than ever in 2023. Outsourcing accounting may help CPAs stay competitive and deliver the best possible service to their customers while they manage the obstacles of the present economic climate.

Whether you’re a CPA or a company owner, now is the time to examine how you handle bookkeeping chores. Outsourced accounting for CPAs can help you save money, enhance efficiency, and improve the accuracy of your financial data.

Here are some tips for CPAs looking to outsource their bookkeeping tasks:

  • Define your needs.

Before outsourcing, define your bookkeeping needs, including the level of service, frequency, and scope of work. This will help you determine the appropriate outsourcing partner and set clear expectations for both parties.

  • Choose the right partner.

Look for an outsourcing partner that specializes in bookkeeping and accounting services. Research their reputation, experience, and qualifications to ensure they have the necessary expertise to meet your needs. Consider factors such as their technology infrastructure, data security protocols, and service-level agreements.

  • Communicate Clearly

Establish clear communication channels with your outsourcing partner and maintain an open dialogue throughout the engagement. Clarify expectations, deadlines, and reporting requirements to avoid misunderstandings or miscommunications. Regular check-ins and progress reports can help ensure the outsourced work aligns with your business objectives.

  • Review and monitor work

Regularly review the outsourced bookkeeping work to ensure accuracy, completeness, and compliance. Consider using a third-party auditor or conducting periodic reviews to ensure the outsourced work meets your standards and clients’ expectations.

  • Leverage Technology

Technology plays a crucial role in outsourced bookkeeping. Ensure your outsourcing partner uses up-to-date software and tools to streamline processes, enhance efficiency, and provide real-time reporting and financial insights. Consider cloud-based accounting software, data analytics, and workflow automation tools to improve accuracy, reduce errors, and increase productivity.

  • Focus on client needs

Outsourcing bookkeeping allows you to focus on delivering exceptional value to your clients. Use your freed-up time to enhance client relationships, offer personalized advice, and develop new business opportunities. By providing value-added services and building long-term relationships, you can increase client satisfaction, retention, and referrals.

  • Measure Performance

Measure the performance of your outsourcing partner using metrics such as accuracy, timeliness, and customer satisfaction. Regularly review their performance against established benchmarks and KPIs and provide feedback for continuous improvement.

Outsourcing bookkeeping can be a valuable tool for CPAs seeking to optimize their business operations and enhance client services. By choosing the right outsourcing partner, maintaining clear communication, leveraging technology, and focusing on client needs, CPAs can achieve cost-effective, accurate, and compliant financial management.

Remember to regularly review and measure performance to ensure outsourced work aligns with your business objectives and meets clients’ expectations.

Do you have any questions about outsourced bookkeeping for CPAs? Velan can assist.

Velan works directly with your clients to deliver professional bookkeeping services while also assisting you in focusing on other profitable services. Our service provides clear communication as well as frequent updates and reports, ensuring that you are constantly up to date on your client’s development.

Contact us if you have any more questions about our services or outsourced bookkeeping for CPAs in general. We’d be delighted to assist.

Topics: CPA Bookkeeping

Can a CPA perform bookkeeping services?

Posted on 06/12/2022

Can a CPA launch a profitable accounting company? It’s important to bear in mind that you need to consider your skill set. If you have a history in taxes, you should become knowledgeable about operational accounting as well as accounting and bookkeeping. Routine accounting and bookkeeping, such as how to input a vendor bill, fall under the category of operational accounting.

  • How is a vendor bill paid?
  • How is a consumer payment entered?
  • How does the accounting program function?

Not simply understanding how to manage daily transactions in accounting software, but all of that information is crucial to know with bookkeeping for CPAs. We will share some advice from our experts on how to launch a profitable accounting firm with you in this blog article.

What does a CPA Firm do?

Generally Accepted Accounting Principles (GAAP) and the tax ramifications of company transactions are explained by a Certified Public Accountant (CPA).CPAs assist in developing tax strategies at the federal, state, and municipal levels and offer support during any IRS audits. Bookkeeping for CPA traditionally works with a bookkeeper in order to fulfil the accounting needs of a business.

Additionally, CPAs serve as a second pair of eyes to make sure that bookkeeping has been done correctly and offer formal or informal auditing services. CPAs use the accounting records kept by a bookkeeping company to offer advice on more complicated issues.

CPAs usually collaborate with bookkeepers to meet a company’s accounting needs. Significant internal controls that maintain data integrity may be absent if a CPA business lacks a middle level of workers or a senior accountant.

A CPA company, more often than not, does not provide a real-time controller who can oversee the bookkeeper, fix accounting difficulties, and manage a proper month-end close. CPAs may frequently produce management reports that controllers generally deliver, but their time is severely constrained during specific seasons, such as tax season (February to April and August to October), and much more so during this year’s tax revisions.

Do CPA firms use QuickBooks?

One of the most adaptable accounting programs used by CPAs and accounting firms throughout the world is QuickBooks. It swiftly and effectively handles financial operations including payroll administration, billing, inventory management, and invoicing.

Do CPA firms use QuickBooks? Although implementing QuickBooks on a local IT infrastructure might provide some difficulties for a CPA business, it does have several benefits for its users.

Lack of storage space on the local infrastructure and the inability to view the data from a distance are a couple of the issues. The productivity of a CPA business may be threatened by these issues if they are not resolved as soon as possible.

You may use the following information to assess whether QuickBooks Hosting is worthwhile for CPA companies.

  • Distance Access

The benefit of remote accessibility is one of the main factors supporting CPA businesses’ need for cloud-hosted QuickBooks. With QB hosting, CPA firm personnel are no longer required to physically visit the office in order to view their accounting data. The data may be easily accessed from any location at any time because they are kept on distant cloud servers.

  • Data Protection

The user is always in control of data security while using any version of QuickBooks. The company may suffer serious damages in terms of cash and reputation if there is a data breach or other digital security concern.

However, the hosting company for QuickBooks takes all required security measures to offer enterprise-level data protection. A team of IT and cybersecurity experts at the cloud service providers keep a watch out for any strange traffic patterns.

Additionally, the cloud environment is fitted with the most recent security tools, including intrusion detection and prevention systems and antivirus software, which guards against data breaches on QuickBooks files and enables accountants to operate efficiently.

What does an accounting bookkeeping service Firm Do?

Understanding the specifics of your company, effectively managing many transactions, comprehending how cash flow influences operations, and knowing what reports you need to make the best selections are all things that a bookkeeping services provider offers. Additionally, they have years of experience operating QuickBooks and other financial tools.

Benefits of Having an Accounting Bookkeeping Service Firm:

Despite the possibility of synergies, we believe hiring different services to handle your tax and small company bookkeeping needs would produce superior results because:

  • Eliminates Conflicts of Interest:

While it is ideal for both businesses to have your best interests at heart, maintaining a clear division of roles is essential to preventing conflicts of interest. There is less independence and a chance that the advantages of a formal audit will be reduced if the same business handles tax and bookkeeping concerns.

  • Cost-Effective:

Costs for bookkeeping services from a CPA company are often higher than those from a bookkeeping firm. The hourly rate for your CPA’s consulting services might not be the best way to spend your money or their time. Think about hiring a virtual bookkeeper who is more in line with your budget to outsource your bookkeeping on a monthly or weekly basis.

  • Superior Level of Service:

If you own a service-based company, you are aware that clients choose you because of your knowledge. Likewise, select financial advisors who are aware of their responsibilities. CPAs keep up with evolving rules and regulations, while bookkeepers keep up with best practices and efficiency to save your company money and your time. A company that excels at neither is one that does both.

What is it that a CPA can do that no other accountant can?

A wide range of auditing, consulting, tax, and accounting business responsibilities are included in public accounting for governmental entities, businesses, nonprofit organizations, small enterprises, and people. Most of these activities may be completed by any qualified public accountant. However, a CPA can accomplish two tasks that no other accountant can:

  • Preparing a report for the Securities and Exchange Commission (SEC) after completing reviewed or audited financial accounts. Legally, every publicly traded firm must provide audited financial statements to the Securities and Exchange Commission (SEC).
  • Defending the clients’ interests before the IRS. However, a person without a CPA license can still represent customers; however, in order to do so, the person must also be an enrolled agent, lawyer, actuary, or retirement plan agent.

Read More: Difference Between a Bookkeeper and a CPA

Which choice is the best for me?

For young business owners, the variety of options for outsourcing accounting services may be too much. There isn’t a solution that works for everyone, much like operating a business. Instead, different alternatives suit various purposes.

The size, complexity, and budget of your company are three crucial factors to take into account while handling your money. This can help you decide the range of services you need and the resources that are accessible to you. Keep in mind that you’ll probably need extra services to keep your money in order as your books get larger and more complicated.

When Velan was first developed, it was meant to be a low-cost online bookkeeping option for small to medium-sized enterprises. Velan has developed a special business strategy and financial technologies that have helped it manage monthly cash-based accounting very well. Business owners now have access to a cost-effective financial solution that satisfies their demands thanks to its simplicity and effectiveness.

Velan is excellent for small company owners, but it might not be able to handle the demands of bigger, more sophisticated businesses. Companies will probably adopt new accounting techniques as they expand. They could follow accrual (GAAP) accounting principles, which are well-known to most CPAs.

Additionally, CPAs can be able to offer consulting, tax planning, or projection services. These services will be more expensive because of the greater variety of offerings, greater depth of expertise, and frequent ongoing participation in the operations of their clients.

The services that are accessible to business owners are becoming more automated, real-time/online, and economical as the accounting sector develops thanks to technological advances.

Financial professionals now have access to platforms like Quickbooks and Xero which are effective tools for handling accounting very effectively. Others, like Velan, have taken their efforts to alter how traditional bookkeeping and taxes are handled a step further.

As a result, many business owners and professionals have swiftly changed with the times and now make use of a wide range of services. A growing number of business owners use Velan in conjunction with their CPAs to obtain the best of both worlds while keeping costs as low as feasible.

Our Bookkeeping Experts are here to help.

Core Skills of Velan in Accounting and Bookkeeping Services:

  • Reconciling the Banks

It takes a lot of time and effort to look for bank account information and complete the necessary forms. It may be quite difficult to control cash input and outflow through bank reconciliation. As a result, accounting requires one to wade through a ton of boring jargon.

  • Maintaining the books

Accounting and bookkeeping require a specific understanding of that field in order to maintain all financial records. Velan is quite knowledgeable in maintaining the business’s records. The ledgers, diaries, books of accounts, and other relevant accounting books can thus be used by the firms to maintain all of their financial records. Since all accounting tasks are performed on an internet platform, organizations may simply save expenditures.

  • Benefits to your clients’ taxes

By keeping in mind the requirements for year-end reporting, your outsourced accounting staff makes sure that your clients’ monthly financial data is handled correctly. Each and every one of the bookkeeping records will be correct, thorough, and current. It may be used by your tax accountant to precisely prepare your clients’ taxes and guarantee that they receive all tax breaks. Tax return accountants are financial professionals who specialize in preparing tax documents and advising clients on taxation matters.

  • Financial statement analysis

Production, a sales campaign, marketing initiatives, cost-cutting-related operations, and several other business-related activities are just a few of the numerous tasks that go into running a firm.
As a result, firms need to have a comprehensive understanding of the associated costs. Charts, graphs, tables, and other ratios are used in top accounting firms to provide an accurate image of the company’s finances

Additionally, these aid organizations in honing and modifying their strategy in order to grow. As a result, businesses may simply obtain the necessities for their finances, such as income statements, profit and loss ratios, balance sheets, and many other financial-related tasks.

  • Collections management

Management of receivables is crucial for organizations to maintain consistent cash flow. As a result, CPA accounting firm Services assists in sending all invoices to all significant clients in a very professional manner. Regular email reminders can be combined with tracking past-due payments. Additionally, it will guarantee that the firms receive all payments promptly.

  • Correct taxation

Velan has a solid background in dealing with organizations. They are also well-versed in every facet of this place’s tax laws. As a result, all tax deductions will be made as per industry standards by the accounting service provided here. Consequently, businesses do not need to worry about the tax withheld from their accounts.

  • Offer effective accounting

Velan offers years of expertise and appropriate understanding in the field of accounting. Since they are all certified accountants, they can work very efficiently on the accounting tasks at hand. As a result, the firms located here may obtain all the accurate accounting statements that they need right away.

  • Only pay what is required

Why hire a full-time accountant in-house when you can outsource and just pay for productive hours? There may be times when you may not require full-time bookkeeping assistance.

During such time, the in-house accounting team passes the time while waiting for new jobs and is not fully used.

Outsourcing your clients’ bookkeeping services to handle work as it comes in is more cost-effective.

Join Our Team Today!

Velan can be your trusted business partner for everything from simple bookkeeping to more complicated financial demands. Our professional consultants have assisted several firms in increasing their efficiency and output. We strive to provide businesses with specialized and accurate accounting and bookkeeping services.

Topics: CPA Bookkeeping

What is the difference between a bookkeeper and a Certified Public Accountant?

Posted on 29/11/2022

Bookkeeper and CPA: Common people sometimes struggle to understand the precise distinctions between bookkeepers, accountants, and CPAs (Certified Public Accountants). Accounting business frequently swaps the terms instead. While they all manage the funds and strive for the same objective, the range of work that each of these specialists does differs greatly.

In addition to the nature of the task, there is a distinction in their professional position. Every financial transaction made by a corporation is recorded by the bookkeeper. Accountants analyze financial transactions in greater detail, and CPAs are state-approved accountants.

Many business accounting services teams must include bookkeepers, accountants, and CPAs. They carry out a variety of financial-related jobs that assist businesses in tracking crucial financial information and creating reports. It could be easier for you to choose the position that best suits your talents, interests, skills, and experience if you are aware of the distinctions between these professions. Are you looking for a reliable accounting and bookkeeping service online? Velan is here to take care of company accounts at an affordable cost.

We define bookkeepers, accountants, and CPAs in this blog, highlight ways in which they differ from one another, and offer some advice on how to decide which career path to take. Bookkeepers and Certified Public Accountants (CPAs) both work in accounting for small business owners. The main distinction between a bookkeeper and a CPA in this context is found in their respective roles, pay scales, and levels of professionalism. A bookkeeper’s primary duty is to keep an ordered record of all financial transactions, whereas a CPA’s primary duty is to offer financial advice.

Main Functions: Bookkeeper vs. Accountant vs. CPA

Bookkeeper’s Job Duties

Who are the bookkeepers? To balance and maintain all financial accounts relating to an individual, corporation, or organization is the basic and uncomplicated task of this person. The main way that bookkeepers assist others is by maintaining an ordered log of all daily and monthly transactions. A bookkeeper is just what you need if you require someone with attention to detail who can handle the finer points of your financial data. Your bookkeeper can help you avoid fines, manage deductions, avoid CRA audits, and save you money by keeping all of your information organized and in order. Bookkeepers carry out a number of tasks that are relevant to most businesses kinds.

  • Purchases and sales are tracked by bookkeepers.
  • They match up financial records, such as bank statements.
  • Accounts payable and accounts receivable are tracked by bookkeepers so that the firm is aware of how much it owes and how much its clients owe it.
  • They settle the invoices for accounts payable.
  • The payroll system is processed and maintained by them.

Typically, bookkeepers have some college experience but no formal education. Some bookkeepers merely have a high school diploma. The median annual salary is about $39,240. Bookkeepers maintain a company’s records, which helps managers make smart business decisions.

Managers examine a company’s bookkeeping records to assess its financial health. The precise and speedy organization abilities of bookkeepers also assist accountants and CPAs in carrying out their duties more effectively.

Always bear in mind that the bookkeeper’s primary responsibility is to maintain financial accounts and records; it does not include any analysis. Additionally, bookkeepers do not often earn large incomes as CPAs do. They often work for small enterprises or corporations. Depending on their requirements and budget, businesses may engage bookkeepers on a contract basis or full-time.

What Are CPAs (Certified Public Accountants)?

How to find a CPA? A CPA adds another layer of authority and knowledge. An accountant who has passed certain exams and complied with all other legal and licensing criteria of a state in order to be certified by that state is known as a CPA.

CPAs produce and examine financial statements in addition to preparing and signing tax returns for individuals and corporations. They also represent clients before the IRS during audits and other processes. The national professional organization for CPAs is called the American Institute of Certified Public Accountants (AICPA).

To administer this test and provide the license, the AICPA works in tandem with the National Association of State Boards of Accountancy (NASBA). After receiving their license, CPAs must maintain it by fulfilling the Continuing Professional Education (CPE) requirements every one to three years, in accordance with the state board’s rules.

In the accounting sector, the CPA credential is one of the most prestigious, respected, and sought-after credentials. A difficult path must be taken in order to obtain a CPA license. A CPA differs from a bookkeeper or any other accountant since they have this license. A CPA’s scope of work goes beyond keeping accounting records, unlike a bookkeeper. It involves the following:

  • Examining financial documents
  • Getting financial reporting ready
  • Carrying out an audit
  • Filing and preparing tax returns
  • Aiding in the making of business decisions

A CPA’s primary responsibility is to preserve and keep a close eye on the financial records of businesses, public entities, and private citizens. Compared to conventional accountants, CPAs are more reliable and skilled. They support households, corporations, and people in managing their money and achieving their financial objectives.

Comparison of Bookkeepers vs CPAs:

A bookkeeper’s job description, educational requirements, professional standing, and pay are very different from those of a CPA. There are some notable variances





Professionals are in charge of keeping track of the money coming into and going out of the company.


Accounting professionals with State Board licenses who passed the Uniform CPA test and have the necessary training and work experience.


National Professional Association


Professional job status

Low Status

High Status

Businesses that they serve

  • Schools and colleges
  • Healthcare businesses
  • Government institutions
  • Retail outlets
  • NGOs
  • Small- to medium-sized businesses (SMBs)
  • Large companies
  •  The public accounting industry
  • Government institutions
  • The Non-Governmental Sector (NGO)

Licensing and Certification Requirements

AIPB and NACPB’s Certified Bookkeeper (CB) Certification is available but not mandatory for practice CPA license mandatory to practice as a CPA

Abilities needed

Basic knowledge of math and computers Higher level reasoning abilities (analysis, interpretation, and evaluation)

Hire for

 Routine recordkeeping

  • Financial consulting to handle complex business transactions.
  • Preparing and filing a tax return

Basic Requirements

Minimum High-School Diploma
  • An undergraduate degree (150 credit hours)
  • One to two jobs (May vary as per the jurisdiction)
  • Pass the CPA exam uniform


Since many of an accountant’s responsibilities are similar to those of a bookkeeper, accounting may initially appear to be comparable to bookkeeping. Despite the fact that accountants may also function as bookkeepers, accounting is a considerably more nuanced and analytical profession.

They examine the financial information to provide financial estimates and advice on financial factors that influence the expansion of the business. Their regular duties include:

  • Advising on taxes
  • Financial statement preparation
  • Determining tax obligations
  • Submitting tax returns
  • Ensuring that bookkeeping procedures follow the standards
  • Identifying accounting inconsistencies
  • Making and evaluating budgets
  • Working together with auditors

Businesses may use data and insights from accounting to connect various financial metrics. Due to this, organizations are in a better position to identify both profitable and underperforming regions. It is in charge of converting the data from ledgers into statements that aid firms in better planning and achieving their long-term objectives. Accountants are frequently consulted by decision-makers for assistance with budget forecasting, determining tax liabilities, and filing taxes.

Which Accounting Expert Is Right For Outsourced Accounting Services?

Every outsourced accounting service or person must maintain their financial records and handle their books. To do this, you must employ a bookkeeper (either full-time or on a contract basis), whose primary responsibility is to keep an organized record of all transactions and balance the accounts.

In other words, a bookkeeper will manage payroll, produce reports, pay bills, and reconcile accounts in addition to doing all the other “busy” jobs. An accountant is your best bet if you require a more comprehensive understanding of these reports and data. In order to assist you in increasing cash flow and achieving your future objectives, he will handle your taxes.

But if your company dealings are complex and you require a CPA rather than an accountant, do so. The fact that only a certified public accountant (CPA) has the power to represent you if the IRS comes to knock on your door is another decisive factor.

Advice on deciding whether to pursue a career as a bookkeeper, accountant, or CPA

You can use the following advice to choose one of these positions to apply for:

  • Analyze your timetable

Determine if you have time to continue school and additional training or if you must start a job immediately. With little training, you may become a bookkeeper. However, as an accountant, you might discover additional chances and promotions if you have the time to complete a degree. You may increase your employment prospects and financial potential by studying for and passing the CPA test with more time invested.

  • Decide how comfortable you are with responsibility.

All bookkeepers, accountants, and CPAs are responsible for ensuring that they retain and record accurate data. However, bookkeepers have the least liability because they don’t deal with audits or tax data. All accountants are held accountable for more rigorous financial data, and CPAs are permitted to work with information covered by federal and state tax laws. You might be able to choose the position you want to pursue by being aware of the potential risks associated with each job.

  • Think about your chosen employment duties.

These accounting roles have various responsibilities and skill requirements. Accounting and CPA roles may include more challenging financial obligations, whereas bookkeeping positions need more administrative work. You must utilize math in order to succeed in bookkeeping, accounting, and CPA roles, but accounting and CPAs may do so more frequently than bookkeepers. Knowing the difference could make it easier for you to select a position that fits your needs and expectations while also matching your skills.

Hire bookkeepers and CPAs to handle your company’s financial needs

The business world is evolving quickly, and businesses need excellent financial accounting services to comply with rules like licensing and taxation that keep them operating. Most transactions involving partners or financial institutions must be supported by transparent and reliable financial statements.

Velan is a specialist who assesses the company’s accounting requirements to determine when or if a bookkeeper or a CPA should be hired.

Our Bookkeeping Experts are here to help.

Topics: CPA Bookkeeping

How to Find the Best CPA bookkeeping for Your Startup or Small business?

Posted on 25/11/2022

“Choosing the Right CPA Accountant for Your Business. Finding a decent accountant is so challenging that it has even given rise to a running joke among small business owners or founders of startups.”

While doing your own books may seem like a cost-effective option, hiring a professional bookkeeper for your business might end up costing much more in the long run.
Employing a certified public accountant (CPA) may help you save time, money, and potentially even your sanity because startups frequently deal with sophisticated tax and accounting issues including cash flow management, compensation issues, and venture capital financial due diligence.

Numerous factors will affect how much a small business or organization will pay for CPA bookkeeping rates. Accounting work completed by a CPA accounting firm, you’ll find a range of $150/hr to $450/hr. The size and stage of the company, the volume of monthly transactions, the number of workers and the manner in which payroll is handled, the number of expense accounts and credit cards, the volume of invoices to be sent out and paid, the number of balance sheets to be reconciled, etc.

Your expenses will be affected by how your accounting systems, rules, and processes, as well as your reporting requirements, are set up and managed, in addition to these fundamental bookkeeping tasks.

What Do Velan CPA bookkeepers for Small Businesses Do?

Small business accountants like Velan CPA bookkeepers are experts with the expertise and understanding to guide owners through their financial records. They are frequently Certified Public Accountants (CPAs). These accountants could operate on a monthly, quarterly, or yearly basis, depending on the size and requirements of the company.

Small businesses frequently enter into agreements with accounting firms or individual accountants who provide the services they require, unlike bigger organizations that frequently employ accountants. CPA bookkeeping provides a wide range of services tailored to the requirements of freelancers and small company owners. The majority of Velan CPA bookkeepers offer firms specialized service bundles and extra knowledge. One of the services a CPA provides is:

  • Tax Return Preparation

Tax return filing for both individual and company filings is one of the key services a CPA does. The only people qualified to file returns are those with a current Personal Tax Identification Number (PTIN). Small company owners and independent contractors often seek the assistance of Velan CPA bookkeepers because many accountants and bookkeepers decline to file returns. Working with a CPA also gives you the assurance that you are claiming all permitted self-employed tax deductions.

  • Tax planning

Our CPA can assist you in reducing your tax liability. Because every organization is unique, you will need a specialist to identify tactics that are adapted to your particular circumstance.

  • IRS correspondence

The IRS or a state agency will frequently write to small company owners and independent contractors at some time. You need a CPA’s advice to determine whether the fines and penalties can be reduced. After you’ve completed a Power of Attorney form, many CPAs can communicate with the IRS and other authorities on your behalf, relieving you of this responsibility.

  •  Consulting

Our CPA can help you understand the financial and tax ramifications of every business decision, including succession planning and growth strategy. A transparent understanding of the consequences of tax is the foundation for good growth and the capacity to reduce taxes.

  • Financial Statement Preparation

Our CPA may also prepare financial statements for your company as a standard service. Financial statements must be prepared by an impartial third party for compilation, reviews, and audits. Because of their independence, which they value highly, CPAs can provide your company with accurate financial statements that can be given to lenders, investors, and other third parties.

What is a CPA vs. an accountant?

All that distinguishes CPAs vs. accountants are their credentials and skill level. Accounting is a profession, however, not all accountants are CPAs.
A bachelor’s degree is a requirement for an accountant, although a license or certification is not. Bookkeeping, tax preparation, profit-and-loss statement preparation, and financial and tax planning are all tasks carried out by accountants.

To become licensed, a CPA must, however, satisfy the state’s educational and experience criteria and pass the demanding Uniform CPA Exam, which includes both basic business knowledge and accounting issues.

This also implies that a CPA’s fee structure is often more expensive than that of a regular accountant. CPAs may provide a wider variety of accounting services and can play a more advisory or strategic role in the financial operations of your business.

Why CPA is Necessary for a Startup

An accountant is a specialist who handles all the intricate and crucial arithmetic activities associated with running a business, including accounting, financial planning, and the preparation of tax returns and profit-and-loss statements.

An accountant who has passed their state’s Uniform CPA Exam and satisfies the educational and experience criteria of their home state is referred to as a Certified Public Accountant (CPA).

In other words, all CPAs are also accountants, but not all CPAs are accountants. A CPA can do all of the following responsibilities in addition to offering sound advice and assisting you in making the proper decisions. However, since this is your business, a CPA cannot make business decisions for you.

  • Assist your company in reducing taxes today and make arrangements for upcoming tax circumstances. Identify any issues with your tax returns before the IRS does with the help of audit and assurance.
  • Management and consulting: Assist in budgeting, risk management, and the creation of financial statements for shareholders. Act as your company’s chief financial officer (CFO).
  • Investigate the financial records to assist you to stop or find theft or fraud using forensic accounting.
  • Payroll administration: Ensure that everyone is paid promptly and that all payroll deductions are processed properly.
  • Bookkeeping: Take care of invoices and accounts receivable, see to it that the bills—such as rent and utilities—are paid promptly, and make prompt payments to your suppliers.

As you can see, a CPA can assist you with much more than simply tax preparation and bookkeeping. It’s time to start looking for a CPA you’d genuinely like to hire once you’ve decided what services you need from one.

Choose if you want an internal or external accountant.

If you want your accountant to handle a specific type of job, think about whether you have enough work to keep an internal or in-house accountant occupied. Even while having exclusive access to their information could be convenient, you might only require someone on a temporary basis.

Additionally, bear in mind that it is trickier to outsource back-office duties like billing and paying bills than other jobs like categorizing transactions and balancing accounts.

Even if you could choose to work with an internal accountant or bookkeeper, it’s typical to have a CPA from outside prepare your taxes.

For this reason, a developing company would be wise to start by talking with an independent accountant or accounting firm. A full-time employee’s salary and benefits are frequently less expensive than those of an outside firm, and you might get better advice from a CPA or tax accountant.

How do outsourced CPA accounting firms?

Business process outsourcing, or BPO, is a means to outsource your company’s daily activities, including marketing, data processing, and web development. A BPO that specializes in accounting is someone who can manage the financial part of your company.

Offshore CPA firms must maintain financial records to manage the budgets, comply with regulations, and learn about your company’s financial viability.

Although there are many outsourced CPA accounting firms, Velan CPA Bookkeepers is your one-stop shop for proficient, high-quality, and outsourced accountants.

Expertise with accounting software

If you currently use accounting software like Xero or QuickBooks, make sure your potential CPA is familiar with how to use it. This is especially crucial for any software that is industry-specific. For instance, the financial toolbox for a SaaS firm differs from that of a company developing mobile applications.

Your CPA will be able to use the program right away to examine your cash flow, inventory control, and pricing if they are familiar with it.

Consider the CPA accounting firm credentials

You should confirm that an accountant has the necessary certifications before hiring them. If they identify themselves as a CPA, it signifies they have passed the exam and have been granted a license by your state. CPAs maintain their licenses by completing continuing education requirements and staying current on all federal, state, and local tax rules.

Some CPAs also hold additional credentials, including those for Personal Finance Specialist (PFS), Certified Valuation Analyst (CVA), and Accredited in Business Valuation (ABV), among others.

Those qualifications are probably genuine if you get the endorsement from the IRS, your state’s board of accountancy, or a state CPA organization. However, if you got a recommendation or looked them up online, you might wish to check CPA Verify, an online central database that has details on authorized CPAs and public accounting companies.

Before making a choice, be sure to enquire about references and talk with a few of your potential accountant’s clients.

A competent CPA can set up your startup for financial success.

For first-time founders, in particular, launching a firm can be both an exhilarating and intimidating experience. In the early stages of any startup, revenue and finance are crucial, and poor financial choices for accounting businesses may make or ruin your company.

Making wise company decisions supported by trustworthy accounting and precise bookkeeping will help safeguard your investment. But who has time for everyday accounting tasks when your business is just getting started?

A startup CPA may be a fantastic resource for guiding you through financial and business issues and helping you avoid expensive blunders so you can focus your energies on other crucial activities like strategy, growth, and scalability.

How Velan can be useful

As the creator of a business, you have a lot of obligations to meet, especially in the beginning. You don’t have to make keeping up with your books one of them. Paying a CPA rate for accounting services may not be financially advantageous for you if all you now require is someone to monitor your monthly finances.

If you outsource your accounting to Velan, you’ll have reliable, current financial information that may be used for tax planning and preparation, small company loan applications, strategic consulting, or audited financial statements.

Velan and a CPA complement each other well. Let’s face it: sound bookkeeping is the foundation of all sound tax planning, accounting counsel, and consulting services.

Consider utilizing Velan in conjunction with a CPA if you want to save yourself time, money, and a lot of hassles. After that, you may resume expanding your business empire.

Our Bookkeeping Experts are here to help.

Topics: CPA Bookkeeping

Bookkeeping for CPAs & Accounting Firms

Posted on 29/09/2022

Velan provides bookkeeping for CPAs, and various accounting firms in the United States and beyond. Our accounting experts can handle accounting tasks of any size or complexity. We act as a catalyst for growth with deep industry knowledge and understanding of accounting, tax, and law.

If you are looking for the right answer to the “outsourced CPA bookkeeping services dilemma, you are on the right page. Any accounting entity or commercial enterprise seeking assistance in handling the tedious task of managing their clients’ books from various industry backgrounds can get help from outsourced CPA accounting firms to better manage their accounting tasks efficiently.

You can outsource all your critical accounting tasks to us and focus on high-income accounting and tax activities. We provide you with continuous feedback. This transparent approach given by the outsourced CPA accountant can give you more actionable insights into your financial performance, allowing you to manage your business better.

Here’s what you get from Velan

  • Efficient, certified & trustworthy Bookkeepers
  • Easy-to-adapt processes – outsource in minutes!
  • Flexible hiring & pricing model
  • Error-free accounting coupled with ISO Certified data security standards.

Why Choose Certified Public Accountants?

All CPAs Are accountants, But Not All Accountants Are CPAs

Factors like license, role, skills, and more set them apart. Which is why you need to choose the best for you!

Accountants and Certified Public Accountants (CPA) are both essential to business functions, and the two roles have important differences.

So, would a CPA benefit your organization’s tedious accounting tasks? Let’s take you through these differences and help you choose better.

Accountants do not require a valid license, but a professional CPA requires a license. This ensures that your work is in the hands of professionals but also gives you the surety of quality work.

CPAs must pass rigorous testing and strict licensing requirements in the state where they wish to practice. Employing offshore CPA firms will provide you with Licensed CPAs to ensure compliance is followed.

CPAs are trained well and have completed core courses and accounting, auditing, and business administration hours. taxes and regulations.

Accountants are legally authorized to prepare tax returns, although they may not know tax codes as much as CPAs.

CPA accounting firms employ CPAs who can represent clients and sign tax returns in the event of a tax audit before the IRS, unlike non-CPA accountants.

Code of Ethics and Requirements:

When you outsource your accounting work to accounting and bookkeeping services, you get access to the services of CPAs, certified professionals who follow strict ethical principles and professional standards established by the AICPA.

Since regular accountants do not have a specific governing body, they are not required to adhere to any specific code of ethics.

Top accounting firms provide services by bookkeeping CPAs that have the legal responsibility and authority to act on behalf and in the client’s best interest. Accountants without a CPA license are not considered fiduciary to their clients.

We at Velan maintain certain ethical standards of procedure to maintain the quality of work and provide the best in the market.

Do Bookkeeping CPAs firms use QuickBooks?

QuickBooks Revolutionized Accounting For Businesses, But Is It Advanced Enough To Replace Services Offered By Accounting Firms?

Research shows that 64.4% of small and medium business owners regularly use accounting software such as QuickBooks, with some even replacing human staff with these virtual solutions. It is understandable that, as a business owner, you want to save money whenever possible, but some financial processes still require the expertise of an experienced Certified Public Accountant.

Here is what CPA Accounting services for small businesses offer you when you outsource your requirements.

Keeps You in Compliance

Outsourcing your requirements for Bookkeeping for CPA, several firms prefer to use QuickBooks for accountants as it is excellent software. However, relying solely on it can put you in a lot of trouble.

  • Tax laws are constantly changing, and the agendas are rarely updated as quickly as the laws.
  • If QuickBooks incorrectly calculates your refund based on outdated tax rates.
  • If changes are a deduction for which you are no longer eligible, you may be fined or checked by.
  • This is just one of the reasons why it is so important to work with an accountant who keeps up with guidelines and legislation.

Grow Your Business:

More importantly, QuickBooks cannot guide the types of high-level financial decisions that will help you grow your business. It can produce impressive reports such as income statements highlighting correlations between revenue growth and specific expenses.

  • But without an expert analyzing and interpreting those reports,
  • You can only imagine how the information can be used to improve your bottom line.
  • A competent CPA Bookkeeping service for small businesses, especially those who employ Certified Public Accountants (CPA), specializes in analyzing the details.
  • They identify the financial indicators that even the smartest software would miss, the relationship between profit and loss, and external market trends.

Gain Time to be Your Best:

Anyone can learn to use QuickBooks, but accounting and financial analysis are time-consuming processes that require a lot of attention. The more time you spend analyzing and breaking down financial reports, the less time you have to run your business. The process also takes much longer for a layman than a tax accountant specializing in finance, so it’s best if you outsource your needs to CPA bookkeeping accounting firms.

Foolproof Work:

Finally, QuickBooks is not foolproof. While it provides you with the tools to manage your finances and taxes, it is up to the user to ensure that these tools are used correctly and that the data is entered correctly. Employing the best in class CPA bookkeeping services will help you gain competitive advantages in the industry.

Our Key Differentiators:

Lower costs:

  • Outsourcing allows the company to focus on business expansion strategies by removing routine accounting activities.
  • In addition, it allows the company to obtain high-quality services at low operating costs.
  • If you outsource some of your CPA accounting services.
  • You just have to pay for the accounting work done by our company.
  • This eliminates the need to hire multiple part-time accountants or full-time CPAs to handle the workload, which can be done by a Remote CPA accountant.

Focus on the main functions:

  • Outsourcing frees up time and manpower that would otherwise be used for routine tasks, so you can focus on your business strategy.
  • Working with teams to understand target demographics and change expectations will help attract and manage more customers.
  • Backend operations by small business accounting can seamlessly integrate with the front end when certain business processes are outsourced,
  • Saving more time and eliminating communication delays.

High-end Results:

Be it real estate accounting or the need for a personal tax accountant, depending on the volume and type of work, you can outsource the management of transactional entries, general ledger, and many other basic accounting tasks that take time and work. This means there is a larger workforce during peak season, which increases your business’ productivity without increasing headcount.

Improve service quality:

Outsourcing helps to meet deadlines because the resources needed to do the accounting are available to your outsourced accounting services. This allows staff to focus on more important tasks and increases processing time for financial statements and tax returns while providing quality service.

Outsourcing simplifies bookkeeping and the regular preparation of documents, minimizing stress at the end of the year. This ensures books are tax compliant, saving more time during peak periods. Outsourcing 360-degree services by accounting consultants at Velan will help reduce response time significantly. Since some countries are 10-12 hours ahead of countries in the west.

Tasks Assigned At Night, Completed The Next Morning

Round-the-Clock Support:

With a time, a difference of 10 to 12 hours, outsourcing bookkeeping services in the Asia Pacific allows you to provide 24/7 support. A team of highly trained and skilled CPAs by an accounting firm for small businesses to support your clients round the clock will make it easier for you to expand into the global market.

Partner With Us Today

Partner with a leading cloud technology provider:

Accounting and bookkeeping software moved to the cloud. Being amongst the top 10 accounting firms, Velan uses QuickBooks Online, Xero, and other industry-specific connected cloud solutions that benefit the businesses we serve. Work with us, and we will share our technological know-how with your customers.

Small Bussiness Bookkeeping:

Bookkeeping services tailored to your needs

  • Setup of Accounts
  • Clean-up of Books
  • Bank and Credit Card Statements

Write-up Services:

Outsourced Financial Services:

  • Cash Flow Statements
  • Profit & Loss Statements
  • Preparation of Balance Sheets

Payroll Bookkeeping & Tax Accounting:

  • Preparation of State Payroll Returns
  • 941, 940, 1099, W-2, W-3
  • Sales/User Tax Preparation

Topics: CPA Bookkeeping

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