Technically, yes. But, there are some limitations.
When Bookkeepers Do Tax Returns
Bookkeepers have an important role in tax preparation, and not just during tax season. Throughout the year, your books will be updated, your bank statements reconciled, your payroll issued, and your expenses categorized. You may also receive monthly reports or be paying estimated taxes throughout the year. All of these elements impact your tax burden and how smooth preparing your taxes will go. Your bookkeeper is critical to the tax process.
Some bookkeepers offer special training in taxes. And, technically, anyone can file their own tax return, but the risk of audit and fraud potential are much more substantial. This is because the average individual and bookkeepers lack the critical certifications needed for accurately filing tax returns.
It’s important that your taxes are completed (or, at the very least, reviewed) by a certified public accountant (CPA) to ensure you are complying with tax laws, regulations, and deduction qualifications. Many bookkeepers offer tax expertise, whether it’s preparing reports on income and expenses or completing certain tax forms, but they cannot represent you in front of the IRS and are not certified on financial accounting and reporting, regulation, business environment and concepts, and auditing and attestation.
The Best Case Scenario: An Accounting Firm with CPAs and Bookkeepers Working Together
Bookkeepers can contribute significantly to tax return preparation and filing. There is no denying that they play a critical role in every business’ financial health, operations, and overall success.
One of the most effective strategies for businesses on the small, medium, and single-owner side is to work with an accounting firm that can offer comprehensive services that cover bookkeeping, ongoing accounting, and tax services when it’s tax time. This works well as bookkeepers in CPA firms have oversight and access to resources and tax professionals for answers to any tax-related questions.
Already Have a Bookkeeper You Love?
If you already have an in-house bookkeeper you’re happy with, no sweat! Bookkeepers often provide CPA firms with the valuable reports, data, and financial information needed to complete and file taxes. Keep in mind that most accounting firms (ours included) offer support to bookkeepers, including accounting software cleanups and training, financial reporting services, budgeting and forecasting, inventory, and more.
Remember, a CPA firm isn’t only valuable during tax time! Your bookkeeper needs support throughout the year, too.
