CPA Firms, Bookkeeping Services, Payroll Services, Outsourced CFO, and Contracted Accounting Services – What are the differences and what do I need to be successful?
We get this question from almost every single client we meet. In order to make a good decision on choosing any or all of these services you’ve got to understand each one and how they’re different.
Because choosing the RIGHT one(s) can and will make a big difference in the success of your business. Read on and by the end of this article you will be ready to make a decision on which service is right for you now.
The Short Answer..
CPA Firms Focus on:
- Corporate Tax Filing and Planning
- Personal Income Tax Filing and Planning
- Financial Audits and Reviews
- Payroll Tax Filings
- Federal, State, and Local Tax Compliance issues
Bookkeeping Companies Focus on:
- Recording revenue and sales receipts
- Post and apply bank deposits
- Update client deposit reconciliations
- Categorize and record Accounts Receivable to the proper accounts
- Ensure bank, credit cards, and other account reconciliations are being completed accurately
- Define policies and procedures for well-managed and controlled accounting infrastructure
But our Bookkeeping is unique so you may not see this same list of responsibilities with other firms. Learn more about the differences here.
Payroll Services do the Following:
Payroll Services, like SurePayroll and ADP provide a platform for processing payroll if you know all the ins and outs of the payroll guidelines and compliances.
A company like DTu that provides Payroll Services bridges the gap. The gap between processing payroll and what you’re required to do to get your payroll ready for processing.
That includes handling everything from payroll tax deposits to quarterly and year-end tax forms.
Outsourced Controller/CFO Does:
Outsourced Controller/CFO will be beneficial when you are determined to grow to the next level.
When used appropriately, a Controller/CFO can be extremely beneficial in achieving the growth objectives you set. However, finding the Controller/CFO that understands your values and company philosophy can be a challenge.
A GOOD outsourced CFO is someone that can help you map out the financial direction of your company. They can help whip your internal accounting department into shape, and even come on board just to help you hire out a team OR a full time CFO.
Outsourced Accounting Services
Outsourced Accounting Services listed below can be very extremely helpful. Especially when you have an accounting team that is struggling with knowledge or bandwidth.
Because you need your accounting team to effectively analyze the current structure and develop or improve to make it more effective and efficient.
The DTu Accounting team has built, and improved, the accounting infrastructure of several companies to enable the operational team to operate with greater efficiency and profitability.
- Create an operational user friendly accounting system so decision makers can understand the impact of their decisions
- Clean up the current financial system and give the current team a fresh start
- Recruit and develop accounting members to improve turnover
- Review operational processes and improve them to allow implementation of effective controls
- Implement paperless AR and AP and applicable approval process to reduce expenses and improve vendor relationships
CPA, Payroll, Bookkeeping. Where do I start?
With all these choices, how do I know what I need and when to retain these professional services to help me in supporting my business?
After decades in the industry, here is what we recommend:
Start with Payroll Services
Have you ever messed up Payroll?
There are few things more traumatic than processing payroll incorrectly. It’s a nightmare for you and for your employees.
So, you may start with the Payroll Services so you can sleep at night. Or be out of the office knowing your employees are being paid correctly and appropriately.
In addition to standard payroll, we will make payroll tax deposits on your behalf timely and file your Federal, State, and Local tax filings accordingly.
Garnishments, 401(k), expense reimbursements, and other benefit payments such as Medical, Dental, Vision, Short-Term Disability and Long-Term Disability Insurances can be paid directly so you do not need to track and pay them separately yourself.
We have found that outsourcing payroll lifts a huge burden for most business owners, leaving you more time and attention for your revenue producing activities.
Bookkeeping Services are Next
Once you are happy with the Payroll Services, you may want to review your bookkeeping work.
It is absolutely imperative that you set your Chart of Accounts to reflect your business uniqueness and to enable you and your team to manage controllable vs. non-controllable expenses.
Controllable expenses should be separated into different General Ledger accounts so you can monitor and improve over time.
Non-controllable expenses can be grouped together based on common characteristics.
By having the right partner, you should be able to easily review your financial statements. Then make meaningful management decisions and measure the results.
Some clients understand the benefits of having well trained professionals take care of their financials. And they don’t wont to hire those people individually.
So they skip the bookkeeping services and choose to outsource their entire accounting department.
That includes management of Accounts Receivable and Accounts Payable..
And this allows them to dedicate their valuable time to growing their business.
In addition to freeing up their time, they add to their team multiple professionals that understand the ins and outs of their financial capabilities.
Outsourced Accounting for Everything
The final stage of all this effort will be to secure a part-time Accounting Manager, Controller, and ultimately CFO so you can strategically plan where you want your company to grow.
This is why DTu Accounting was created! We have a team of professionals with extensive experience in everything discussed here.
Now you see the reason we suggested adoption of accounting services in the steps above. It’s because at each stage, if you are adding services with us, we are learning more about your business over time.
We are structured to be flexible enough to support every aspect of your business, while still maintaining the performance YOU need to succeed.
That means that in the end, we want you to trust and work with us like we are your accounting department.
And we know you will!
Working with Your CPA
We recognize and value your relationship with your CPA and the importance of continuing that relationship.
Chances are your CPA firm does not like to do payroll, bookkeeping, or internal accounting for that matter. So, we work to provide your CPA firm with accurate and timely financials during the year and at year-end so they can plan your tax accordingly and file your tax on time.
We will also welcome and work within the tax planning from your CPA firm, improving your accounting discipline and structure to fully implement the tax saving recommendation.
And don’t worry, we know that you and your CPA firm have a trusted relationship. We can be the missing piece that will strengthen that relationship.
DTu Accounting team has worked together for over a decade to provide support for small entrepreneurs as well as multi-entity operations. We want to be your trusted partners to bring you the solid financial discipline you should expect from your team.
For a free discussion to determine what you need, call me at: 813-263-6016
Don Tu
Don started DTu Accounting with a gifted team of Bookkeepers, Payroll Specialists, Accountants and Management personnel - all dedicated to helping you and your business! Read his story here.
