Bookkeepers vs CPAs: Who Should Handle Your Business Finances?

If you run a business, you’ve probably asked yourself this question:
“Who handles business finances? Should I hire a bookkeeper or a CPA?”

It’s a smart question - and one that trips up a lot of freelancers, side hustlers, and small business owners.

You’re not alone if you’re wondering:

• “Aren’t they basically the same thing?”

• “Do I need both?”

• “Which one will actually help me save time and money?”

Let’s break it down simply: no accounting jargon, just straight answers - so you know who to call, when to call them, and why it matters.

💼 What Does a Bookkeeper Do?

A bookkeeper is the person who helps you organize, track, and maintain your financial records on a regular basis.

They handle:

• Recording income and expenses

• Reconciling bank statements

• Categorizing transactions

• Managing accounts receivable and payable

• Creating monthly financial reports (Profit & Loss, Balance Sheet, Cash Flow)

At Breakspears Bookkeeping Services LLC, we specialize in helping solo entrepreneurs, creative professionals, and small business owners stay on top of their numbers with flat-fee monthly bookkeeping—so you never feel overwhelmed or behind.

💡 Think of a bookkeeper as your financial sidekick, keeping your books tidy and your business running smoothly every single month.

📊 What Does a CPA Do?

A Certified Public Accountant (CPA) is a licensed professional who can:

• File your business taxes

• Offer tax planning advice

• Help with audits or financial compliance

• Create detailed financial forecasts

• Provide strategic advisory for larger financial decisions

CPAs are most valuable at tax time or if your business structure is complex (e.g. multi-member LLCs, corporations, investors involved).

💡 Think of a CPA like a financial consultant—great for the big-picture strategy and tax-saving moves, but not someone you typically talk to every week.

🤔 Bookkeeper vs CPA: What’s the Difference?

📌 So... Who Handles Business Finances?

Here’s the golden rule:
➡️ Bookkeepers handle your daily and monthly finances.
➡️ CPAs step in for tax time and long-term planning.

Most businesses - especially freelancers, solopreneurs, and creative entrepreneurs need both at some point, but they don’t need them both all the time.

💡 A bookkeeper is your ongoing partner in staying organized, saving time, and being ready for taxes.
💡 A CPA is your seasonal expert who makes sure you’re compliant and tax-efficient.

🧠 Why Bookkeepers Are Often Your First and Most Frequent Hire

When you're just getting started or growing your business, it's your bookkeeper who:

• Keeps your financial records clean and audit-proof

• Makes tax time easy by preparing everything your CPA will need

• Helps you understand your cash flow and profit month to month

• Saves you from last-minute receipt hunts and spreadsheet chaos

That’s why so many small business owners trust Breakspears Bookkeeping Services, LLC to keep their finances on track with affordable remote bookkeeping packages.

👩‍💼 When Do You Need a CPA Instead of a Bookkeeper?

Call a CPA when:

• You're filing complex taxes or have employees

• You're applying for loans or outside investment

• You're dealing with an IRS audit or notice

• You’re changing your business structure

• You want detailed tax planning strategies

In these cases, your bookkeeper and CPA can work together. Your bookkeeper provides clean, accurate records - and your CPA builds on that foundation for taxes or big decisions.

🔁 Bookkeeper + CPA = Your Dream Financial Team

You don’t have to choose one over the other.
You just need to know who does what and when to bring them in.

Think of it like this:

• Your bookkeeper keeps the machine running smoothly.

• Your CPA tunes it up when it’s time to race.

And when they work together? You get clarity, compliance, and confidence - without the financial overwhelm.

🎯 Final Thoughts: Who Should Handle Your Business Finances?

If you’re asking who handles business finances, bookkeeper vs CPA, the real answer is:
➡️ Start with a bookkeeper. Bring in a CPA when the time is right.

Most of your ongoing financial needs - like staying organized, tracking cash flow, and understanding your numbers can be handled by a great bookkeeper (🙋‍♀️ like me!).

At Breakspears Bookkeeping Services, LLC, we offer:

• Flat-fee remote bookkeeping

• QuickBooks Online expertise

• Monthly reports, reconciliations, and clarity

• Support that’s friendly, jargon-free, and personalized

📬 Ready to Take Control of Your Business Finances?

Let’s chat. Whether you’re just starting out or getting serious about growth, we’ll help you feel confident about your numbers.
👉 Explore our bookkeeping packages or book a free discovery call today.

The #1 Tool Every Small Business Needs to Control Cash Flow

Let’s talk about the thing that can make or break your business - cash flow.

You might be making great sales. Clients might love you. But if the money coming in doesn’t match the timing of the money going out? That’s when even the best businesses can hit a wall.

Cash flow problems are one of the biggest reasons small businesses struggle, especially in the first few years. But what if managing your cash flow didn’t have to be stressful or complicated?

The secret? Using the right tool.
And we’re not talking about a spreadsheet that collects digital dust.

So, what’s the number one tool we recommend at Breakspears Bookkeeping Services, LLC for managing cash flow?

Let’s break it down.

Why Cash Flow Is the Lifeline of Your Business

Cash flow is all about timing. It’s the money flowing in from clients or customers, and the money flowing out for expenses like rent, subscriptions, software, contractors, and supplies.

You need enough cash on hand at the right time to pay bills, reinvest, and grow. Without visibility into your cash flow, you’re essentially flying blind.

💡 Even profitable businesses can go under due to poor cash flow management.

That’s why choosing the right cash flow management tool for small businesses is essential.

The #1 Tool: QuickBooks Online (QBO)

There are plenty of cash flow management tools on the market, but none combine real-time accuracy, ease of use, and scalability like QuickBooks Online.

Here’s why we consider QBO the best cash flow management tool for small businesses:

✅ 1. Real-Time Bank Feeds

QBO syncs directly with your business bank account. That means:

• You see your income and expenses in real time

• Your bank balance is always up-to-date

• No manual data entry or guesswork

💡 This visibility is critical for understanding your available cash at any moment - not just your bank balance, but what’s owed, what’s coming in, and what’s going out.

✅ 2. Automated Cash Flow Projections

QuickBooks Online includes built-in tools to project your cash flow 30 or 90 days ahead. This gives you insight into:

• Whether you’ll have enough to cover payroll or rent

• When to follow up on overdue invoices

• If you can afford to invest in growth

It’s like having a financial crystal ball, without the guesswork.

✅ 3. Invoicing + Payment Tracking in One Place

Waiting too long to get paid? That’s a cash flow killer.

With QBO, you can:

• Create branded invoices in minutes

• Accept payments online (via ACH or card)

• Track who’s paid…..and who hasn’t

• Set automatic reminders to follow up on late payments

💡 The faster you get paid, the healthier your cash flow.

✅ 4. Expense Tracking & Categorization

Keeping track of your spending is key to managing cash flow. QBO helps you:

• Automatically categorize recurring expenses

• Tag and track tax-deductible purchases

• Get alerts when spending spikes in a category

No more wondering where your money went.

✅ 5. Customizable Reports for Smarter Decisions

You can’t manage what you don’t measure.

QuickBooks offers real-time financial reports including:

• Cash flow statements

• Profit & Loss

• Accounts receivable aging

• Expense trends

At Breakspears Bookkeeping Services, LLC, we help clients review these reports monthly to spot red flags, cash flow issues, and growth opportunities early.

Other Tools That Pair Well With QBO

While QuickBooks Online is our top choice, there are a few add-ons and integrations that take your cash flow management to the next level:

• Relay (for cash flow-focused banking)

• Melio (for scheduling payments to vendors)

• Fathom or Float (for deeper forecasting if needed)

But for most freelancers and small businesses, QBO alone is powerful enough to get you organized and ahead of the game.

How to Get Started with Cash Flow Management

Ready to take control of your cash?

Here’s what we suggest:

1. Open a separate business bank account (if you haven’t already)

2. Subscribe to QuickBooks Online and connect your bank

3. Set up your chart of accounts to track income & expenses

4. Create your first invoice and track payments

5. Run a monthly cash flow report to review your financial health

💡 Bonus tip: Work with a QuickBooks ProAdvisor (like us!) to get it set up right the first time.

Final Thoughts: Take the Stress Out of Cash Flow

Cash flow doesn’t have to be scary.
With the right cash flow management tools for small businesses, you can stop reacting to money problems - and start making empowered, confident decisions.

At Breakspears Bookkeeping Services LLC, we help small business owners, creatives, and side hustlers gain control of their finances with simple, flat-fee remote bookkeeping support. Whether you're just starting out or scaling up, we can help you:

• Set up QuickBooks Online correctly

• Understand your cash flow

• Stay tax-ready every single month

💡 Need Help Managing Your Business Finances?

Let’s get your books in order and your cash flow under control.
👉 Check out our affordable bookkeeping packages or book a free intro call today.

How to Manage Business Finances Without Losing Your Mind

Let’s face it, managing business finances isn't exactly a party. Spreadsheets, tax deadlines, invoices, receipts from six months ago stuffed in a drawer somewhere... it’s no wonder most entrepreneurs feel like their brains are doing somersaults when it's time to "do the books."

But here's the good news: You can learn how to manage business finances without losing your mind….or your weekends. With the right habits, tools, and mindset, even the most numbers-averse small business owner can feel confident and in control.

Let’s break it down, step by step.

Step 1: Separate Business and Personal Finances (Immediately!)

If you only take one thing from this article, let it be this: open a dedicated business bank account.

Mixing personal and business funds is like mixing paint, it gets messy fast. Not only does it make bookkeeping harder, but it can also land you in hot water at tax time. A separate account keeps things clean, professional, and makes it easier to track income and expenses.

💡 Pro tip: Link your business bank account directly to your accounting software for automatic transaction imports.

Step 2: Choose an Accounting System That Works for You

You don’t need to be an accountant to use accounting software. In fact, platforms like QuickBooks Online, Wave, or Xero are designed for business owners with zero finance background.

Here’s what to look for:

• Bank syncing

• Invoice generation

• Expense tracking

• Mobile app access

• Financial reports (profit & loss, cash flow)

💡 Keep it simple. You don’t need all the bells and whistles, just what helps you stay organized and tax-ready.

Step 3: Set Aside Time Each Week for Your Books

Think of your finances like laundry: ignoring them doesn’t make them go away - it just makes the pile bigger.

Block out 30-60 minutes once a week to:

• Categorize your expenses

• Reconcile your bank transactions

• Send invoices and follow up on payments

• Review your cash flow

💡 Make it a vibe. Light a candle. Put on a podcast. Make a cup of tea. Turn “finance time” into a weekly check-in that actually feels good.

Step 4: Understand the Basics (without the jargon)

If you're wondering how to manage business finances effectively, learning a few key terms can go a long way:

• Revenue: What you earn before expenses

• Expenses: What you spend to run your business

• Profit: What’s left after expenses

• Cash flow: The movement of money in and out of your business

• Chart of accounts: A categorized list of all your business transactions

💡 Not sure where to start? Ask your bookkeeper or accountant to explain your financial reports to you in plain English.

Step 5: Plan for Taxes Year-Round

Waiting until April to think about taxes? That’s a trap.

Instead:

• Save 20–30% of your net income each month for taxes

• Track all deductible expenses (software, travel, subscriptions, etc.)

• Use accounting software to organize everything

💡 Bonus tip: Consider working with a tax pro once a year just to make sure you’re maximizing deductions and staying compliant.

Step 6: Know When to DIY vs. Delegate

Trying to do everything yourself is a fast-track to burnout.

Here’s when to consider hiring a bookkeeper or accountant:

• You’re consistently earning over $5K/month

• You’re behind on your bookkeeping

• You want to grow but don’t fully understand your numbers

• You hate doing it, and it’s stopping you from focusing on your actual business

💡 Hiring help doesn’t mean you’re bad with money - it means you’re smart about where your time is best spent.

Step 7: Create a Simple Budget (and Actually Use It)

You don’t need a 10-tab spreadsheet to create a budget. Just list out:

• Expected income (monthly)

• Fixed expenses (rent, software)

• Variable expenses (marketing, supplies)

• Savings goals (taxes, new equipment, rainy day fund)

Use this to guide your decisions - like whether you can afford that new course or rebrand.

💡 Check in with your budget monthly. Adjust as needed. You’re allowed to evolve.

Step 8: Review Your Financials Every Month

At the end of each month, take 15–30 minutes to look over:

• Profit & loss statement

• Bank balance

• Outstanding invoices

• Any big wins or unexpected costs

It’s a great way to spot red flags early and celebrate your progress—even if it’s just being less stressed about your finances than you were last month.

💡 Make it fun: turn it into a “money date” with yourself or your business partner.

Final Thoughts: You Don’t Have to Be a Numbers Person to Be Financially Empowered

Learning how to manage business finances isn’t about becoming a math genius: it’s about building confidence, clarity, and control.

Start small. Stay consistent. And remember: you’re not alone. There are tools, communities, and experts (👋 like me!) ready to help you ditch the overwhelm and make peace with your money.

Need help managing your business finances without the stress?
Let’s chat - Breakspears Bookkeeping Services is here to make sense of your numbers so you can focus on growing your business.