Frequently Asked Questions

How long should I keep my tax records for?

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

What are the differences between a CPA and a bookkeeper?

A bookkeeper is someone who works for a company (either as an employee or a contractor) to keep the financial books. A bookkeeper is responsible for accurately recording transactions, including accounts receivable, accounts payable, inventory, and payroll and providing reports on a monthly, quarterly, and annual basis.

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A CPA has an additional level of credibility and expertise. A CPA is an accountant who has passed certain examinations and met all other statutory and licensing requirements of a state to be certified by that state. In addition to preparing and reviewing financial statements, CPAs also prepare tax returns for businesses and individuals, sign tax returns, and represent taxpayers before the IRS for audits and other matters.

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