Who’s Who on Your Financial Team
Bookkeepers, CPAs, and the Rest of the Money Pros | 7 minute read
Bookkeeper. CPA. Tax Accountant. EA. CFP. CFO. There are so many financial professionals out there! They each offer different services which sometimes overlap, but which one(s) do you really need?
If you’re a small business owner, freelancer, or side hustler, it can be confusing to decide who to call for what. Keep reading for a breakdown of the five most common financial professionals you might work with, what they actually do, and when to bring them in. Then, we’ll look at a few fun case studies so you can test your new knowledge.
1. Bookkeeper – The Daily Financial Translator
A bookkeeper helps manage and organize your financial data. They take all the chaos of receipts, bank feeds, and spreadsheets and turn it into organized, digestible reports. If you bring bank statements and a box of receipts to your tax accountant, they will likely refer you back to a bookkeeper before getting started on your returns. A bookkeeper’s other goal is to ensure that your financial data and trends are accessible on a timely basis. If you would like to make management decisions based on your business’ year-to-date performance, engaging a monthly or quarterly bookkeeping service will enable you to do so.
You need a bookkeeper if:
You don’t know your business profit (or loss) before tax time.
You want monthly financial reports that you can act on.
You need your records ready for a CPA or CFO to analyze.
2. Certified Public Accountant (CPA) – The Financial Strategist
A CPA has passed a rigorous exam and is licensed to perform higher-level accounting work, including tax filing, audits, and financial analysis. Many small businesses think of CPAs as “the tax people,” but they can also help with budgeting, business structure, and compliance. A professional with a CPA designation can offer bookkeeping, tax, accounting, and advisory services, but not all bookkeepers and accountants are also CPAs.
You need a CPA if:
You want to make sure your taxes are done correctly and strategically.
You’re making major financial decisions, such as forming an LLC or S-Corporation.
You need formal financial statements for a lender or investor.
3. Tax Accountants and Enrolled Agents (EAs) – The Compliance Experts
Tax professionals focus on staying current with ever-changing tax laws, so you don’t have to. They look for legitimate deductions, credits, and strategies that align with your business structure and goals. Tax accountants may hold CPA licenses and specialized tax or accounting degrees or they may simply have on-the-job training in a tax firm or department. Technically, the only thing required to sign off on a tax return as a paid preparer is an $18.75 Preparer Tax Identification Number (PTIN). (For a while, PTINs were free!)
Some pros want to focus on tax at a high level but are not interested in becoming a CPA, and that’s where Enrolled Agents (EAs) come in. EAs are federally licensed by the IRS and specialize exclusively in taxation. Like tax-focused CPAs, they can prepare and file tax returns, represent you before the IRS, and help you plan proactively to reduce what you owe.
You need a tax accountant or EA if:
Your business is growing and your tax situation has gotten more complex.
You’ve started paying contractors, hiring employees, or selling in multiple states.
You’re not sure whether to pay estimated taxes or how to plan for them.
You just don’t feel like filing your own taxes!
4. Certified Financial Planner (CFP) – The Long-Game Thinker
A Certified Financial Planner (CFP) is trained and certified by the Certified Financial Planner Board of Standards. While bookkeepers, CPAs, and tax pros focus on your current business finances, a CFP zooms out to look at your whole financial life.
They can guide you through retirement planning, investment choices, insurance coverage, and strategies for big life goals like buying a home, saving for college, or someday transitioning out of your business. CFPs often collaborate with your CPA or bookkeeper to make sure tax strategy, cash flow, and investments are all working together.
You need a CFP if:
You’re earning consistently and want to start saving or investing strategically.
You need help building a retirement or wealth-building plan that fits your lifestyle.
You’re thinking beyond the business towards your personal financial future.
5. Chief Financial Officer (CFO) – The Big-Picture Partner
A Chief Financial Officer (CFO) acts as your business’s financial navigator. While bookkeepers and CPAs focus on the accuracy of your numbers, a CFO interprets those numbers to shape your overall business strategy.
Even small businesses can benefit from this level of insight through fractional CFOs, professionals who work with multiple clients on a part-time basis. A fractional CFO can help you analyze profitability by product or service, monitor cash flow, develop budgets, forecast revenue, and set measurable growth targets. They bridge that gap between data and decisions.
You need a CFO if:
Your business is scaling and needs a plan that supports sustainable growth.
You intend to take on financing, hire a team, or invest in expansion.
You want a partner who will turn your financial data into actionable strategies.
Case Studies: Match the Pro to the Problem
Case 1: The Busy Freelancer
Jasmine, a freelance graphic designer, drops off a stack of bank statements, credit card summaries, and receipts at her tax accountant’s office. She receives a call later explaining that the accountant can’t prepare her return without a complete profit and loss statement and doesn’t have the bandwidth to create one from raw statements. Jasmine also realizes she doesn’t know whether her business is actually profitable. She mostly just checks her bank balance and hopes for the best at the end of each month.
Answer: She needs a Bookkeeper.
Case 2: The Expanding Bakery
Carlos owns a local bakery that’s thriving in its first neighborhood location. He’s ready to open a second shop across town but feels uncertain about whether he can afford the expansion. He wants help projecting startup costs, evaluating financing options, and structuring his business so both locations operate efficiently. Carlos has solid bookkeeping and a good tax accountant, but he needs someone to translate his financial reports into strategic guidance.
Answer: He needs a CFO.
Case 3: The Traveling Consultant
Amara is a marketing consultant who recently decided to spend half the year living abroad while continuing to serve her U.S. clients. She isn’t sure how her move affects her tax obligations: What counts as U.S. income? Does she still need to pay estimated taxes? How should she handle business expenses overseas? She’s also juggling multiple currencies and wants to have everything figured out by tax time.
Answer: She needs a Tax Accountant or EA.
Case 4: The Wellness Studio Owner
Jamie owns a small yoga and wellness studio that’s finally reached financial stability after a few unpredictable early years. His classes are full, his instructors are paid, and his bookkeeping and taxes are on track. Now he’s thinking about the next stage. He wants to start investing some of his profits, building a retirement plan, and setting up his family for future financial independence.
Answer: He needs a CFP.
TL;DR
Not everyone needs all of these professionals at once, but knowing who does what can save you time, money, and headaches. Start with a bookkeeper to get your financial foundation solid. Add a CPA or tax accountant for compliance and tax strategy. Bring in a CFO as you grow and a CFP when you’re ready to think long-term.
Looking for Support?
Eager to clean up your financial data, but not sure where to start? Reach out to get connected with a qualified bookkeeper.