ABSTRACT
Bookkeeping refers to maintaining your chart of accounts then keeping track of your income and expenses, as well as capital contributions and drawings. For large companies that have thousands of transactions per day, they’ll usually hire internal bookkeepers while small businesses like ours tend to use a service or individual bookkeeper on contract if you don’t do it in-house. The tax professional that you hire may offer bookkeeping services. If you go with a full-service tax firm, they usually hire bookkeepers just for this reason or possess those skills themselves. Tax pros who aren’t CPAs have to adhere to the practice standards outlined by the IRS. The tax code enforces these standards on enrolled preparers, which entails CPAs, Enrolled Agents, and tax attorneys. Unenrolled preparers are not licensed, and therefore can’t represent you before the IRS and state tax authorities, and aren’t held to these rigorous practice standards or representation privileges that enrolled preparers.
