Some bookkeepers prepare tax returns, but many focus on keeping your books clean throughout the year so your CPA can file your taxes efficiently. It depends on their credentials and what services they offer.

A bookkeeper maintains your financial records. A CPA or Enrolled Agent prepares your tax returns and represents you if you get audited. Many firms offer both services because clean monthly books make tax preparation faster and cheaper.

When your bookkeeper also handles tax preparation, you get better coordination. They already know your business, your books are already organized, and there’s no back and forth between separate bookkeepers and tax preparers trying to fix errors.

If your bookkeeper doesn’t prepare taxes, they should at least work with your CPA to make sure your books are set up correctly for tax purposes. Good bookkeeping all year means faster, cheaper, and more accurate tax returns.