What kind of tax and accounting advisor does my business need?

An Enrolled Agent (EA) is a tax professional licensed by the IRS to prepare federal individual and business tax returns and represent taxpayers before the IRS regarding collections, audits, and appeals. EAs must pass a licensing exam and meet continuing education requirements. When it comes to federal tax return preparation and practice, EAs are able to provide many of the same services as CPAs and attorneys. Some states also recognize EAs as authorized state tax return preparers. The IRS maintains a directory of federal tax return preparers and EAs.

The Certified Financial Planner (CFP) designation is conferred by the Certified Financial Planner Board of Standards, Inc., a nonprofit organization, rather than a governmental body. A CFP must meet education and experience requirements and pass a certifying exam (an accelerated licensing path is available for CPAs and attorneys). CFPs typically advise on issues regarding investing, retirement, and succession planning.

A bookkeeper tracks your business’ financial transactions. A bookkeeper’s duties may include managing a general ledger, handling accounts payable and receivable, preparing simple financial statements, payroll, and tax remittances. There is no official certification or licensing of bookkeepers, though many CPAs and other certified professionals offer bookkeeping services. As an organization grows in complexity, it may employ a controller (often a licensed CPA) to provide complex financial statement analysis, prepare budget and financial planning analysis, to supervise internal and external financial reporting, support acquisitions and other transactions, and support financing activities, or may engage an accounting firm to provide these services on an outsourced basis.