You need help with your numbers, but the options all sound similar:
- Bookkeeper
- Accountant
- CPA
- CPA firm
They all seem to do “financial stuff,” but the level of expertise, licensing, and responsibility is very different.
If you run a business or have a complex personal financial situation, understanding what a CPA firm actually is can help you decide whether you need more than basic bookkeeping or tax prep.
This guide covers:
- What a CPA firm is and how it’s regulated
- What services CPA firms provide to businesses and individuals
- How CPA firms differ from accounting firms and bookkeeping services
- How to choose the right CPA firm for your needs
- What CPA services typically cost
- FAQs about CPA firms, services, and working with one
Use this as a starting point for deciding whether sticking with DIY or a basic bookkeeper is enough, or whether you’re ready for a deeper partnership with a CPA‑led firm.
What Is A CPA Firm?
A CPA firm is a business owned and operated by one or more Certified Public Accountants (CPAs). These firms provide professional services in accounting, tax, and financial advisory, and they are regulated by:
- State boards of accountancy
- Professional organizations such as the AICPA (American Institute of Certified Public Accountants)
To use the term “CPA” in the firm’s name, the business must meet licensing rules that typically include:
- Having at least one owner or principal who is a licensed CPA
- Meeting state‑level registration and continuing education requirements
- Following professional standards for ethics, quality control, and independence
In other words, a CPA firm is not just “an office that does taxes.” It is a regulated professional practice, similar to a law firm, but focused on accounting, tax, and financial reporting.
What Does A CPA Firm Do For Businesses And Individuals?
CPA firms can cover a wide spectrum of services. The exact mix depends on the firm’s size and focus, but most fall into these categories.
Tax Preparation And Tax Planning
- Preparing individual income tax returns
- Preparing business tax returns (LLCs, S‑corps, C‑corps, partnerships, nonprofits)
- Sales and use tax returns
- Payroll tax filings
Beyond filing, many CPA firms help with tax planning, such as:
- Choosing tax‑efficient entity structures
- Planning for estimated tax payments
- Timing income and deductions to manage tax brackets
- Structuring owner draws, salaries, and dividends
Bookkeeping And Accounting Oversight
Some CPA firms offer hands‑on bookkeeping, while others oversee or clean up books prepared by in‑house staff or a separate bookkeeper. This can include:
- Setting up the chart of accounts
- Reviewing monthly financials for accuracy
- Adjusting entries at year‑end for depreciation, accruals, and other items
- Ensuring books align with tax rules and financial reporting standards
Financial Statements, Reviews, And Audits
Larger or more specialized CPA firms may also perform:
- Compilation of financial statements
- Review engagements (limited assurance)
- Audits (reasonable assurance)
These services are often required by:
- Banks and lenders
- Investors and partners
- Boards and regulators
Being able to issue attested financial statements is one of the key differences between CPA firms and non‑CPA accounting firms.
Business Advisory And Consulting
Many CPA firms provide advisory support, such as:
- Cash flow analysis and budgeting
- Financial projections and scenario planning
- Profitability analysis by product, service, or location
- Advisory around financing, acquisitions, or exits
Some go further into fractional controller or fractional CFO services, acting as a part‑time finance leader for growing businesses.
CPA Firm Vs Accounting Firm Vs Bookkeeping Service
The terms get used loosely, but there are real differences.
How They Compare
| Provider Type | Typical Work | Credentials And Regulation | Best For |
| Bookkeeper | Data entry, reconciliations, basic financial reports | No specific license required (standards vary) | Very small businesses, early‑stage startups |
| Accounting Firm | Accounting, some tax prep, general advisory | May or may not have CPAs on staff | Businesses needing help beyond basic bookkeeping |
| CPA Firm | Tax, accounting, assurance, audits, representation, advisory | Owned/led by licensed CPAs; regulated by state boards and AICPA | Owners who want deeper expertise and formal oversight |
Why The Difference Matters
- A bookkeeper helps keep the ledger clean, but usually doesn’t advise on tax strategy or entity structure.
- An accounting firm can provide higher‑level analysis and tax help, but if it is not a CPA firm, it may have limits on what it can sign, attest, or represent.
- A CPA firm combines accounting services with licensed expertise and the ability to stand behind financial statements, interact more directly with the IRS, and provide assurance services where allowed.
If your financial life is simple, a bookkeeper might be enough. As complexity grows, CPA‑level oversight becomes more valuable.
Who Do CPA Firms Serve?
CPA firms serve both individuals and businesses.
Individuals
- Employees with stock options, RSUs, or bonuses
- Self‑employed professionals and freelancers
- Real estate investors and landlords
- High‑net‑worth individuals with multiple income streams
- People receiving K‑1s from partnerships or S‑corps
These clients often need more than basic return preparation. They may require help with:
- Multi‑state filings
- Planning for estimated taxes
- Structuring investment and retirement contributions
- Estate and gift tax planning (often in coordination with attorneys)
Small And Mid‑Sized Businesses
For businesses, a CPA firm can be:
- The outsourced accounting department
- The tax and compliance partner
- The trusted advisor for major decisions
Industries that frequently rely on CPA firms include:
- Professional services (agencies, consultancies, law practices)
- E‑commerce and online businesses
- Cannabis and other highly regulated sectors
- Multi‑location retail and hospitality
- Construction and real estate
If your business has employees, inventory, multiple owners, or operates in more than one state, a CPA firm is often a good fit.
How To Choose The Right CPA Firm
Picking a CPA firm is not just about finding someone who can “do taxes.” You’re choosing a long‑term financial partner.
Check Credentials And Licensing
- Confirm that the firm is a licensed CPA firm in your state.
- Verify that key people you’ll work with are licensed CPAs.
- Look for membership in reputable professional organizations.
Most state boards of accountancy have online license lookup tools you can use.
Look For Industry Experience
Ask whether the firm has experience with:
- Your entity type (LLC, S‑corp, C‑corp, partnership)
- Your industry’s common challenges (for example, inventory, sales tax, 280E, platform reporting for e‑commerce)
- Your stage (startup vs established company vs scaling multi‑entity group)
Industry knowledge means fewer surprises and more practical advice.
Understand Their Service Mix
Clarify what they actually do:
- Bookkeeping and monthly accounting vs year‑end only
- Business and personal tax returns
- Payroll, sales tax, and other compliance filings
- Advisory, controller, or CFO‑level services
You want a service package that matches both where you are now and where you expect to be in the next few years.
Evaluate Communication And Fit
Ask yourself:
- Do they explain things in plain language?
- Do they respond promptly?
- Is there a clear point of contact?
You will be discussing sensitive financial information with this firm, so trust and communication style matter.
Ask About Technology
Strong CPA firms typically:
- Use cloud accounting platforms (e.g., QuickBooks Online, Xero)
- Provide secure portals for document upload and e‑signature
- Automate routine tasks where possible
Good technology makes the relationship smoother and gives you more timely financial insight.
How Much Does A CPA Firm Cost?
There is no single price tag, but most CPA firms use one or more of these pricing models.
Common Pricing Approaches
- Hourly billing for consulting, cleanup work, or special projects
- Flat fees for specific services:
- Individual tax returns
- Business tax returns
- Sales tax registration and filings
- Monthly packages that bundle:
- Bookkeeping
- Month‑end closes
- Management reports
- Tax returns and planning sessions
What Drives The Cost?
Costs depend on:
- Number of entities (for example, one LLC vs multiple companies)
- Volume and complexity of transactions
- Payroll, inventory, and multi‑state operations
- Need for specialized work (e‑commerce platforms, cannabis rules, audits, etc.)
A good CPA firm should be willing to explain what is included in each fee and how additional work is handled, so there are no surprises.
How Technology Is Changing Modern CPA Firms
Modern CPA firms look different from the traditional paper‑heavy office.
Cloud Accounting And Real‑Time Data
Many firms now:
- Use cloud accounting platforms that let you see up‑to‑date numbers from anywhere
- Connect to banks and payment processors for automated feeds
- Offer dashboards and reporting that go beyond a basic P&L
This gives you better visibility into your business month‑to‑month, not just at tax time.
Automation And AI
Automation tools can:
- Categorize transactions based on learned patterns
- Flag unusual items for review
- Speed up reconciliations
AI‑driven tools can also support forecasting, budgeting, and “what if” scenario modeling. The value for you is not the technology itself, but the insight and speed it unlocks when combined with human judgment.
Remote Collaboration
Secure portals, video calls, and digital signatures mean you don’t have to be in the same city as your CPA firm. That opens the door to:
- Working with specialists in your exact industry
- Keeping a consistent finance partner even if you move or grow across states
Do You Still Need A Bookkeeper If You Have A CPA Firm?
Often, yes.
- A bookkeeper or internal accounting staff handle daily input, invoicing, bill payments, and reconciliations.
- The CPA firm provides oversight, higher‑level analysis, and tax and compliance support.
In smaller businesses, a CPA firm may handle both roles through outsourced bookkeeping and accounting packages. In larger operations, the CPA firm often works alongside an in‑house team.
The key is clear roles:
- Who owns day‑to‑day data entry and approvals?
- Who reviews and adjusts the books monthly or quarterly?
- Who is responsible for tax filings and planning?
When responsibilities are defined, fewer things slip through the cracks.
How Northstar Financial Advisory Helps You Get More From CPA‑Level Support
If you’re at the stage where a basic bookkeeper or once‑a‑year tax preparer no longer feels like enough, you’re not alone. Growing businesses often hit a point where they need consistent, CPA‑level guidance without hiring a full in‑house finance team.
That’s where Northstar Financial Advisory fits.
Through our Bookkeeping and Accounting services, we handle the day‑to‑day and month‑to‑month work:
- Clean, accurate books built on cloud accounting
- Timely reconciliations and reporting you can actually use
- Coordination between bookkeeping and tax so nothing is left hanging at year‑end
On top of that, our Tax Compliance and Strategy and Tax Compliance and Preparation services help you:
- File accurate returns on time, year after year
- Plan ahead for estimated taxes instead of reacting at the last minute
- Structure owner compensation, distributions, and business decisions with tax implications in mind
For growing or more complex operations, our Fractional Accounting and Fractional CFO Services give you access to controller‑ and CFO‑level thinking without a full‑time hire. We also bring deep experience in specialized areas like Ecommerce Accounting and Cannabis Accounting.
The result is a finance function that feels like a joined‑up team, not a patchwork of separate vendors.
If you’re wondering whether your current setup is giving you the insight and support you actually need, it might be time to reassess.
Talk to Northstar Financial Advisory about your accounting and CPA‑level support and explore how a more integrated approach could support your decisions, reduce stress, and keep you ahead of tax and compliance issues.
Common Questions about CPA Firms
What Services Does A CPA Firm Provide To Small Businesses?
Most CPA firms offer:
- Business tax preparation and planning
- Bookkeeping and accounting support or oversight
- Payroll, sales tax, and other compliance filings
- Financial statement preparation and sometimes reviews or audits
- Advisory services, such as budgeting, cash flow planning, and profitability analysis
The exact mix varies by firm, so it’s worth asking for a clear list of services included in your engagement.
What Is The Difference Between A CPA Firm And A Bookkeeping Service?
A bookkeeping service focuses on:
- Recording transactions
- Reconciling bank and credit card accounts
- Producing basic financial reports
A CPA firm:
- Works at a higher level of analysis and responsibility
- Prepares and plans for taxes
- May issue attested financial statements (reviews, audits)
- Can represent you more directly in front of the IRS within its scope
Many businesses use both: a bookkeeper for daily work and a CPA firm for oversight, strategy, and compliance.
How Do I Choose The Best CPA Firm For My Business?
Key factors include:
- Licensing and credentials – verify it is a CPA firm and that your main contact is a CPA.
- Industry experience – experience with businesses similar to yours.
- Service range – bookkeeping, tax, and advisory, ideally under one roof.
- Communication – responsiveness and clarity in explanations.
- Technology – use of cloud tools, secure portals, and efficient workflows.
An initial call is a good way to test fit before committing.
How Much Does It Cost To Hire A CPA Firm?
Costs vary widely, but are usually influenced by:
- Complexity of your tax situation
- Number of entities and accounts
- Transaction volume and payroll needs
- Level of advisory or CFO‑style support
Some firms charge hourly; many offer flat fees for returns and monthly packages for ongoing accounting and advisory. Ask for a proposal that explains what is included and how extra work is billed.
Can A CPA Firm Help With Financial Planning And Investment Decisions?
Many CPA firms provide tax‑focused financial planning, such as:
- Retirement contribution strategies
- Timing of stock option exercises
- Planning around major asset sales or purchases
Some also offer broader financial planning or work in tandem with financial advisors. If you want investment advice, ask how the firm handles that and whether there are any potential conflicts of interest.
Do I Need A CPA Firm If I Already Have A Bookkeeper?
You might, depending on your situation.
- If your business is simple and small, a bookkeeper may be enough.
- As complexity grows — multiple owners, employees, inventory, multi‑state operations, or regulatory issues — a CPA firm can add structure, oversight, and tax strategy that a bookkeeper usually does not provide.
Many businesses find the strongest results when a bookkeeper and CPA firm work together with clear roles.
Can A CPA Firm Represent Me If I Get An IRS Notice Or Audit?
Yes. Licensed CPAs can:
- Communicate with the IRS on your behalf
- Help you respond to notices and requests for information
- Assist in organizing documentation and explaining positions taken on returns
Some firms specialize more heavily in controversy and audit defense than others, so ask about their experience if this is a concern for you.
Is An Online CPA Firm As Reliable As A Local One?
It depends on the firm, not just the location.
An online or remote‑friendly CPA firm can be very effective if it:
- Uses secure document portals and communication tools
- Has experience working with clients in your state(s)
- Offers regular check‑ins and clear points of contact
For many businesses, remote access to the right expertise matters more than physical proximity.
