How to Provide Bookkeeping to Clients in a CPA Firm
Certified Public Accountant (CPA) firms typically focus on the tax needs of clients at the end of the fiscal quarter or year. The primary focus of CPAs is to organize income, expenses and equity on income tax forms to prevent their clients from being audited by the Internal Revenue Service. However, CPAs can provide bookkeeping to their clients based on their knowledge of accounting and business processes. CPA firms that want to offer complete accounting services for their clients should consider bookkeeping as an added service.
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Instructions
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Check for any conflicts of interest that could lead to an investigation by the United States Securities and Exchange Commission. According to the SEC, you cannot provide bookkeeping or accounting services to a company that you are currently auditing. Similarly, if you become a bookkeeper for a client, you cannot perform third-party auditing as a CPA firm. The SEC enforces this rule to prevent illegal accounting practices in businesses of all sizes.
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Discuss the fees for providing bookkeeping to your clients. CPA firms typically provide tax services to clients and help with filing income returns at the end of the year. Bookkeeping is a completely different process from tax preparation and should be charged accordingly. For instance, bookkeepers work daily or weekly to keep a client's accounting ledgers in order. Bookkeepers should negotiate an hourly or day rate that compensates them in addition to any tax preparation work they perform for the client.
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Set a schedule for receiving invoices and receipts from the client. Part of bookkeeping for clients at a CPA firm involves constant updating of client asset, liability and equity accounts. The bookkeeper should specify a day each week for the client to drop off invoices and other documents. Consistent recording from week to week ensures that no income or expense goes unaccounted. If possible, ask for copies of the materials from the client to prevent loss during the transfer process.
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Define a specific date after each month, quarter or fiscal year for the client's closed accounting books to be delivered. Closing the accounting books is a critical step to the bookkeeping process that involves adjusting trial balances and posting the final amounts to the general ledger. Depending on the client's accounting schedule, you might have to close the accounting books multiple times per year. Ask the client beforehand about her reporting dates so you are not late delivering the finished books.
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