QUESTION: I have just started a new venture and need some guidance regarding bookkeeping and record keeping. Should I engage the services of a CPA or just hire a bookkeeping service?

ANSWER: Depending on your particular circumstances, you may require the services of both. A CPA or Certified Public Account, has passed a detailed accountancy exam and other requirements to become licensed and certified.

A CPA can advise you on the right legal and financial structure of your business. They can help you develop a tax strategy, periodically review and monitor your financial data, and file your annual tax returns. They can also assist with cash flow and debt management.

When first starting out, it is wise to engage the services of a qualified and licensed CPA.

While you may interact with your CPA several times a year, a good Bookkeeper can assist you with setting up your accounting software, enter financial data and reconcile your accounts every month. They can also manage your accounts payable and receivables and prepare monthly financial reports. Employee tax withholding and reporting to the IRS is another service your bookkeeper can provide.

It is worthy of note that the cost of bookkeeping services is favorable to those of the Certified Public Accountant. A third alternative you may wish to consider is to “do it yourself.”

Known as the industry standard for small-business accounting software, Intuit’s QuickBooks Online is a solid choice for a variety of businesses, especially those that plan to regularly work with bookkeepers or accountants.

Its range of features can support very small operations as well as growing companies that need granular reporting tools to assess different areas of their business. Although QuickBooks Online is user-friendly, there can be a learning curve, particularly if you’re unfamiliar with the basic principles of accounting.

In order to determine if Quickbooks is right for you, it would be helpful to attend an upcoming workshop offered by SCORE Naples. During this demo/lecture style workshop you will gain a basic understanding of basic QuickBooks and how it can save you money.

The workshop will be held September 16 from 9:00 AM to 12:00 PM at the Wintrust Banking Center, 3401 Tamiami Trail, 2^nd floor, in downtown Naples. To register, log on to https://www.score.org/naples/event/person-workshop-quickbooks-understanding-basics

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Gray Poehler is a volunteer with SCORE Naples. Business counseling on this and other business matters is available, without charge, from the Naples Chapter of SCORE. Call (239) 430-0081 or visit https://naples.score.org/mentors . To access information for local SCORE workshops go to https://www.score.org/naples/local-workshops