Today, we’re going to dive into a question I get asked all the time: Who should you hire to help with your business finances? There are so many options—bookkeeper, bookkeeping coach, CPA, tax accountant, CFO—it’s no wonder it feels confusing. And to make it even trickier, some of these terms are used interchangeably, even though they can mean different things.

Plus, there are always exceptions to the rule. So what I’m going to do is give you a general overview of each role and what they typically do. Just know it’s really important to ask questions before hiring someone. You want to make sure their skills actually match what you need.

First up: the bookkeeper.

This is usually the person handling the day-to-day stuff—categorizing your income and expenses, running payroll (if needed), and maybe even generating basic financial reports. Some bookkeepers also help get your books organized and ready to hand off to your tax pro come tax season.

Now, they typically don’t file your taxes but they can make that process smoother by working with your CPA and ensuring your numbers are clean, clear, and accurate.

One thing you might not know—bookkeepers don’t always have a specific certification or degree. In fact, many are hired based on experience, especially in the corporate world. So again, asking the right questions is key.

In the online business world, you’ll see a lot of people calling themselves bookkeepers. And just like I mentioned earlier, they don’t necessarily need a certification or specific education to do so. There are bookkeeping certifications and training programs that many choose to go through. Those can definitely add credibility but they’re not required in order to offer bookkeeping services.

Now let’s talk about something a little different—a bookkeeping coach.

Full disclosure: I kind of made up this term! So if it’s confusing, that might be why. Here’s how I define it: I support business owners who are doing their own bookkeeping. If you haven’t outsourced it yet, or maybe you’re just not ready to, that’s where I come in. I help you set up your bookkeeping system, understand your numbers, and work through any confusing parts along the way.

Basically, I’m that bridge between doing it completely on your own and eventually outsourcing—or even training an assistant to help you. I offer the guidance and support to keep you moving forward, even if you’re not quite ready to bring on a full bookkeeper.

Now let’s move on to CPAs, or Certified Public Accountants.

These professionals go through rigorous education and testing. They have to take extra college courses, pass a very tough exam, and continue doing education credits to maintain their license. I was actually CPA-eligible myself and even passed a few sections before deciding to go a different direction. So I can say from experience—it’s intense!

Because of their education and certification, CPAs tend to offer more advanced, higher-level services. But—and here’s where it can get confusing—some CPAs run their own bookkeeping businesses too. So once again, the roles can blur a little, which is why asking questions is always so important.

Sometimes CPAs do taxes—and sometimes they don’t. Sometimes they even act as a CFO, which we’ll talk about in just a second. So even if someone has a CPA designation, it’s still important to ask a few questions and dig a little deeper to understand exactly what services they offer.

In general, most CPAs provide tax services, but that’s not always the case. One thing that’s usually true, though, is that unless a CPA also offers bookkeeping, they’re not involved in your day-to-day financial activity. They’re not managing your transactions, tracking income and expenses, or doing the hands-on bookkeeping work. Instead, they tend to focus on the bigger picture—strategy, planning, taxes, and so on.

Now let’s talk about tax professionals or tax accountants.

These are often CPAs, but not always. They could also be EAs, which stands for Enrolled Agent. An EA is someone who has a special certification through the IRS. They’re authorized to prepare and file taxes too.

So, a tax accountant might be a CPA, or they could be an EA—or even both. Just know that both CPAs and EAs can help you with tax prep and filing.

Now, a CFO, or Chief Financial Officer, typically provides higher-level strategic financial planning. They help you look at the big picture and overall health of your business—not just the numbers, but what they mean and how to use them to make smart decisions.

If you’re newer or running a smaller business, you probably don’t need a full-time CFO just yet. But some CFOs do offer one-time strategy sessions or tax planning calls, which can be super helpful. As your business grows, you might choose to work with a CFO more regularly, whether through a retainer or specific packages that give you strategic insight as your finances become more complex.

CFOs are usually that next level of strategy when it comes to your business finances. They’re the ones saying, “Let’s go this direction,” or “Let’s hold off on that.” They guide you with a clear financial strategy—and then help you actually implement it.

Now, I know there are a lot of questions around these different roles:

• Who do I hire first?
• Do I need all of them?
• How do they work together?

So let’s break it down.

First up—a CPA or tax accountant. Honestly, you’re going to need one of them sooner than you might think. Yes, you can file your own taxes for a season. Honestly though, having a CPA or a tax pro on your side is a really smart early move. Taxes are one of those areas where mistakes can cost you. There are penalties, fines, and let’s be real, the IRS is not someone you want to mess with.

If you’re unsure who to hire first, I always recommend starting with someone who can help you get your taxes right. And if you need a recommendation, I’ve got a great network of CPAs and tax professionals who are supportive, responsive, and great at working with small business owners. Feel free to reach out! And if you are a CPA, I’d love to connect and grow my network with professionals who are friendly, helpful, and committed to serving business owners well.

Now, let’s talk bookkeepers. Of course, I’d love for everyone to work with me first as a bookkeeping coach—but not just because I love it (though I do!). I truly believe it’s valuable to understand your business finances by doing your own books—at least for a season.

Here’s why: When you know what bookkeeping really involves, you’re in a much better position to confidently outsource it later. I’ve seen so many business owners hand off their books right away, only to feel unsure whether it’s being done right—because they don’t really know what their bookkeeper should be doing.

When you take the time to learn the basics yourself, it clears up that confusion. You’ll know what to look for, what questions to ask, and you’ll feel more confident about your numbers and the person managing them.

This is exactly why I’m such a big advocate for small business owners doing their own bookkeeping—for a season. It gives you a solid understanding of your numbers and systems before handing it off.

But eventually, you’ll hit a point where it’s time to graduate and bring in a bookkeeper. That usually happens when:

• Bookkeeping is taking up too much of your time
• Your transactions are becoming more complex
• You want more detailed reports
• Or it just feels like too much to handle on your own

I love helping people make bookkeeping simple and manageable—especially when you’re just starting out. But there does come a time when outsourcing makes sense. If your time is stretched thin and the value of your time outweighs the cost of hiring help that’s your signal.

So when do you bring each of these financial professionals in? Here’s what I usually recommend:

1. Start with a CPA or tax accountant. Taxes are serious business, and this is one area where you want to get it right early on.

2. Next, if you’re DIYing your books, consider working with a bookkeeping coach—someone like me—who can help you build your routine and make sure everything is on track. Even a one-time check-in can give you peace of mind that your books are in good shape.

3. Once your business grows and you’re ready to hand it off, bring on a bookkeeper to take over those day-to-day tasks.

4. Then, as your business continues to expand, a CFO comes into play. That’s when you’re ready for more high-level strategy and financial planning.

Each role builds on the last, and as your business grows, so does the need for deeper financial support. These professionals usually come with a higher investment—because, like we talked about, they’re more educated and offer more strategic services. So it’s important to keep that in mind as you decide when to bring them on.

The great news? Ideally, all these experts work together to support your business. In the perfect scenario, they collaborate and communicate regularly. For example, you’re working with your bookkeeping coach or bookkeeper day-to-day to keep your transactions and books in order. Then, when tax time rolls around, the tax professional steps in to prepare and file your taxes.

When everyone is talking and coordinating—say, the tax pro asks your bookkeeper to tweak something for clarity—that’s how smooth teamwork helps your business run better.

And when you get to the CFO stage, they use the numbers your bookkeeper provides and the tax info from your accountant to help you make smart, strategic financial decisions.

But here’s my biggest takeaway for you: even if your business is still small and you’re not ready for a CFO, you as the business owner should still understand your numbers. It’s not just about leaving it to the professionals. From the very beginning and all along your journey, you have the power to make smart decisions based on your finances.

Alright, it’s time for the financial jargon demystifying segment of the blog!

Today, we’re diving into the difference between the cash method and the accrual method.

You might not have heard these terms before, or maybe you’ve seen them as options to toggle between in QuickBooks or other accounting software. If you’ve run reports, you might have noticed phrases like “prepared on a cash basis” or “prepared on an accrual basis” — but not really known what that means.

Here’s the scoop: most online business owners are probably using the cash basis method. That means you record your income or revenue only when the cash actually hits your bank account. So, after you invoice a client and they pay, that’s when you record the income in your reports.

The accrual method works a little differently. With accrual, you record the income as soon as you send the invoice even if you haven’t received the cash yet. It’s like recognizing revenue the moment you earn it, not just when you get paid.

The accrual method also involves tracking expenses you expect to pay soon and including those in your reports ahead of time. Both methods have their place—it just depends on what works best for your business and how you want to track your finances.

When we talk about the accrual method, it often includes things like prepays or revenue you haven’t fully earned yet but know is on the way. These kinds of items are what get wrapped into accrual accounting.

But here’s the good news: unless someone has specifically told you to use the accrual method for your reporting, you’re totally fine sticking with the cash basis method.

If you use QuickBooks or similar software, it’s worth checking which method you’re using. Sometimes the toggle can cause confusion with your sales numbers. You might see different totals depending on whether you’re looking at cash or accrual.

Now, if your business grows bigger or if a bank or third-party accounting firm needs to review your books, that’s usually when they’ll require you to switch to the accrual method. That’s because accrual is the preferred method under Generally Accepted Accounting Principles (GAAP). This is the standard accounting framework in the U.S. But most small business owners don’t need to operate under GAAP—and that’s perfectly okay! Unless someone tells you otherwise, just keep recording sales when the cash actually comes in. If you do, you’ll be in great shape.

To wrap up, today we covered what bookkeepers, bookkeeping coaches, CFOs, CPAs, and tax professionals do—and how they can all work together to help your business thrive. If you need help, I’m a click away. Check out my services!

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