ANSWER: Both certified public accountants and bookkeepers are accounting professionals. The primary difference between the two lies in their job responsibilities, salary and professional stature.

Depending on your particular circumstances, you might require the services of both. A certified public accountant has passed a detailed accountancy exam and other requirements to become licensed and certified. Most CPAs will give you their license number, which you can check with your state’s Board of Accountancy.

CPAs can advise you on the right legal and financial structure for 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.

Although 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. The bookkeeper can also manage your accounts payable and receivables and prepare monthly financial reports. Employee tax withholding and reporting to the IRS are other services your bookkeeper can provide.

A bookkeeper keeps a history of every financial transaction in the accounting books. A CPA analyzes these books and offers appropriate financial advice. Thus, a bookkeeper and CPA complement each other to ensure that a company maintains a sound financial position in the long run.

It is worth noting that the cost of bookkeeping services is favorable to those of the certified public accountant. A third alternative you might 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 areas of their business. Although QuickBooks Online is easy to use, there can be a learning curve, particularly if you’re unfamiliar with the basic principles of accounting.