Bookkeeper vs. CPA vs. Tax Preparer: Who Does Your DFW Business Actually Need?

A bookkeeper records and reconciles your transactions every month. A tax preparer files your returns, and any paid preparer needs an IRS PTIN, but no license. An enrolled agent (EA) is a tax specialist licensed by the IRS. A CPA is licensed by the state, can represent you before the IRS on any matter and can look at your books, taxes and planning together. Most growing DFW businesses need clean monthly books plus a credentialed tax professional, and the simplest setup is one CPA who oversees both.

01

Why This Article Exists

Yes, we wrote this so DFW business owners searching "bookkeeper vs CPA" would find us. We're a CPA firm in McKinney, so we have a point of view.

Here's the honest answer anyway, including the cases where you don't need a CPA at all. If you leave knowing exactly who to hire, this did its job.

02

What does a bookkeeper do?

A bookkeeper records, categorizes and reconciles your business transactions so your books match your bank and credit card statements. That's the foundation everything else sits on.

On a typical month, a bookkeeper will:

The SBA lists the same basics. According to the SBA ↗, someone in your business should be handling accounts receivable, accounts payable, available cash, bank reconciliation and payroll.

Good books aren't just for tax time. According to the IRS ↗, good records help you monitor the progress of your business, prepare financial statements, track deductible expenses and support the items you report on your return.

Does a bookkeeper need a license in Texas?

No. A bookkeeper doesn't need a license in Texas. The Texas State Board of Public Accountancy ↗ (TSBPA) treats bookkeeping and tax work as non-attest services that don't require a CPA license.

That means quality varies a lot. Some bookkeepers are excellent and have decades of experience. Others learned last year. A "QuickBooks ProAdvisor" badge helps, but Intuit ↗ itself says that certification shows software proficiency and isn't a business degree or accredited education.

If your books are already behind, start with our behind on bookkeeping catch-up guide or our bookkeeping cleanup and catch-up service.

03

What does a CPA do that a bookkeeper can't?

A CPA can do things a bookkeeper can't because a CPA is a state-licensed accountant with tested education, supervised experience and ongoing ethics requirements. Bookkeepers record what happened. CPAs check whether it's right, explain what it means and plan what to do next.

Here's what that looks like in practice:

Review, not just entryA CPA spots miscategorized expenses, missing income and balance sheet problems a bookkeeper may not catch.

Tax planning during the yearA CPA can estimate your tax bill before year end, while there's still time to change it.

Unlimited IRS representationAccording to the IRS, CPAs, enrolled agents and attorneys have unlimited representation rights, including audits, payment and collection issues and appeals.

Attest workAudits and other attest services are reserved for licensed CPA firms. (Mashbooks doesn't do audits, but this is why lenders sometimes ask for a CPA specifically.)

What does it take to become a CPA in Texas?

To become a CPA in Texas, a person has to pass a background check, the Uniform CPA Exam, an exam on the Board's Rules of Professional Conduct, and meet education and work experience requirements, according to the TSBPA ↗.

Texas now has two routes to the certificate. According to the TSBPA ↗, the 150-hour pathway requires a degree, 150 semester hours of college credit and one year of work experience. A newer pathway, effective August 1, 2026, requires a bachelor's degree, 120 semester hours and two years of accounting experience supervised by a licensed CPA.

Once licensed, Texas CPAs need 120 hours of continuing education every three years, including Texas-specific ethics every two years, according to the TSBPA license renewal page ↗.

Moji's take

“I started my career as an auditor. That training never leaves you. When I look at a client's books, I'm not asking 'is this entered?' I'm asking 'would this hold up if a lender or the IRS looked at it?'”

04

What's a tax preparer, and what's an EA?

A tax preparer is anyone who gets paid to prepare tax returns. An EA, or enrolled agent, is a tax specialist licensed directly by the IRS. Both file returns, but their training and their rights before the IRS are very different.

What is a tax preparer?

A tax preparer is anyone paid to prepare or help prepare federal returns, and the only federal requirement is a PTIN. A PTIN is a Preparer Tax Identification Number. According to the IRS ↗, anyone paid to prepare or help prepare federal returns must have a valid PTIN.

PTINs expire every December 31 and have to be renewed, according to the IRS PTIN FAQ ↗.

The IRS is plain about the gap. On its choosing a tax professional page ↗, the IRS notes that anyone with a PTIN can be a paid preparer, and skill, education and expertise vary widely.

Some preparers without credentials join the IRS Annual Filing Season Program ↗, a voluntary program that requires continuing education each year. Participants get limited representation rights.

A preparer with only a PTIN can't represent you before the IRS on returns prepared after 2015, according to the IRS.

What is an enrolled agent (EA)?

An enrolled agent is a federally licensed tax practitioner, and the IRS calls it "the highest credential the IRS awards" on its enrolled agents page ↗.

According to the IRS ↗, EAs earn the credential by passing a three-part IRS exam covering individual and business returns, or through experience as a former IRS employee. They must complete 72 hours of continuing education every three years, and they have unlimited rights to represent taxpayers before the IRS.

EAs are tax specialists. They're often excellent at returns and IRS problems. They aren't licensed to do accounting work outside of tax the way a CPA is.

ComparisonBookkeeper vs. Tax Preparer vs. EA vs. CPA: Who Does What

Bookkeeper	Tax Preparer (PTIN only)	Enrolled Agent (EA)	CPA
Row "Who licenses them": No license required in Texas	✕No license. Needs an IRS PTIN, renewed yearly	Licensed by the IRS	Licensed by the state (TSBPA in Texas)
Row "Main job": Records and reconciles transactions	Prepares tax returns	Prepares returns and handles IRS matters	Reviews books, plans taxes, prepares returns, advises
Row "Monthly bookkeeping": Yes	Usually no	Sometimes	✓Yes, or reviews it
Row "Tax planning during the year": No	✕Rarely	✓Yes	✓Yes
Row "Prepares business and personal returns": No	✓Yes	✓Yes	✓Yes
Row "Represents you before the IRS": No	Limited or none	Unlimited	Unlimited
Row "Ongoing education required": No	Only if in the voluntary AFSP	72 hours every 3 years	120 hours every 3 years in Texas
Row "Best for": Keeping records current	Simple returns	Tax-focused needs and IRS issues	Businesses that want books, taxes and planning connected

Sources: IRS.gov and the Texas State Board of Public Accountancy (tsbpa.texas.gov)

05

Do I need a CPA for my small business?

You need a CPA for your small business when your taxes and finances have enough moving parts that mistakes get expensive. You probably don't need one if you're a solo owner with simple income, few expenses and no employees.

You probably don't need a CPA yet if:

You probably do need a CPA if:

Taxes are a big part of the picture. Texas has no state personal income tax, but it does have franchise tax and sales tax. Our Texas small business taxes guide walks through what applies to whom.

Decision guideDo I Need a CPA? A 60-Second Decision Guide

StartDo you run a business or side business?

Q1Are your books current and reconciled every month?" No → "Start with bookkeeping cleanup, then come back to this chart." Yes → Q2

Q2Do you have employees, contractors or Texas sales tax?" Yes → "A CPA, or a CPA reviewing your bookkeeper's work, is worth it." No → Q3

Q3Did your tax bill surprise you last year?" Yes → "You need tax planning during the year. Look for a CPA or EA who plans, not just files." No → Q4

Q4Do you have an IRS notice, a loan application or plans to grow fast?" Yes → "Hire a CPA." No → Q5

Q5Is your return a simple Schedule C with a few expenses?" Yes → "A credentialed tax preparer or EA may be enough for now. Revisit as you grow." No → "Talk with a CPA.

06

Can one person do all three?

Yes, one person can do all three if that person is a CPA who does bookkeeping, tax planning and tax preparation. It's not the most common setup, but it's often the simplest one for a small business.

Here's why it matters. When three different people touch your numbers, each one only sees part of the picture:

When one CPA reviews your books, plans your taxes and files your returns, the tax return is built on numbers that CPA already checked. Planning happens during the year, not in April.

That's the model we built Mashbooks around. Moji reviews your monthly bookkeeping and accounting, uses those same numbers for tax planning with quarterly check-ins, and prepares your business and personal tax returns. Payroll, 1099s and Texas sales tax sit in the same place.

Moji's take

“When your bookkeeper and your tax person are different people, you end up as the messenger between them. When the same CPA does both, you get one answer instead of two people pointing at each other.”

To be fair, one person can't be everything. A solo CPA has limited hours, and some work, like audits or entity restructuring, belongs with specialists. A good CPA tells you when something falls outside their lane.

07

What does it cost, and what drives the price?

What an accountant costs depends on how much work your books need, how complex your taxes are and how much advice you want during the year. We don't publish a number here because a fair price for one business is wrong for the next.

Here's what actually drives the price:

Transaction volumeMore bank and card activity means more to categorize and reconcile.

Number of accountsEach bank account, credit card and loan adds a reconciliation.

Condition of your booksCurrent, clean books cost less than books that are months behind. Cleanup is usually a separate one-time project.

Payroll and contractorsEmployees, payroll filings and 1099s add work.

Sales taxCollecting and filing Texas sales tax adds a recurring task.

Entity type and returnsA business return plus your personal return is more work than a single Schedule C.

Planning and accessQuarterly tax planning and being able to call your CPA cost more than a once-a-year filing.

CredentialCPAs generally cost more than bookkeepers or online services, as the SBA notes. The question is whether the review and planning save you more than the difference.

Ask any firm to explain its pricing in terms of these drivers. If someone can't tell you what affects your price, that's a warning sign.

08

What should I look for when hiring an accountant in McKinney or anywhere in DFW?

When hiring an accountant in McKinney or anywhere in DFW, look for the right credential for your needs, experience with businesses like yours, a clear monthly process and someone who'll actually answer your questions.

Here's what matters most:

A credential that matches the jobFor books plus taxes plus planning, look for a CPA. For tax-only work, an EA is a strong choice.

Experience with your industryA contractor in Prosper has different needs than a consultant in Plano. Ask who else they work with (in general terms).

Year-round contactThe IRS suggests choosing a preparer who'll be around for months or years after your return is filed.

Software fitIf you're on QuickBooks Online, a ProAdvisor saves time. If you're not set up yet, see our QuickBooks setup and training.

A clear scopeYou should know what's included every month and what costs extra.

Local knowledgeTexas franchise tax, sales tax and county appraisal districts are different from other states. A DFW accountant already knows the landscape.

Local doesn't have to mean in person. Whether you run a crew out of Garland, a studio in Frisco or a family business in McKinney, most of the work happens through a secure portal and video calls. See every city we serve on our DFW service areas page.

09

What are the red flags when hiring an accountant or tax preparer?

The red flags when hiring an accountant or tax preparer are promises about your refund, fees tied to your refund, pressure to sign before you review and anyone who won't put their name on your return.

The IRS tax topic on choosing a preparer lists several of these directly:

The IRS also warns about "ghost" preparers who don't sign returns, on its choosing a tax professional page.

A few more we'd add from experience on the accounting side:

10

What questions should I ask before I hire?

The questions to ask before you hire an accountant cover credentials, scope, process and communication. A good accountant will be glad you asked.

Checklist10 Questions to Ask Before Hiring an Accountant

Are you a CPA, an enrolled agent or neither? Can I verify your license?

Do you have a current PTIN, and will you sign my return?

Can you represent me if the IRS sends a letter or opens an audit?

Who actually does my bookkeeping, and who reviews it?

How often are my accounts reconciled, and when do I get reports?

Do you plan my taxes during the year, or only file in the spring?

Have you worked with businesses like mine (trade, service, professional)?

What drives your price, and what's not included?

How do I reach you, and how fast do you usually respond?

Who owns my books and files if we stop working together?

Print this checklist

Here's why a few of these matter most.

"Can you represent me before the IRS?" CPAs, EAs and attorneys can sign a power of attorney and handle any matter. According to the IRS ↗, Form 2848 is how you authorize someone to represent you, and that person has to be eligible to practice before the IRS.

"Who reviews my books?" At many firms, the person who enters your transactions and the person who signs your return never talk. Ask how the two connect.

"Who owns my records?" Your books should be in your own QuickBooks file, not locked in theirs. You should be able to leave with everything.

11

How do I verify a CPA license in Texas?

You verify a CPA license in Texas by searching the person's name on the TSBPA Individual Licensee Search ↗. It's free, public and takes about a minute.

Here's how:

For EAs and other credentialed preparers, the IRS keeps a directory of federal tax return preparers with credentials and select qualifications. If a firm offers bookkeeping or tax work through an unlicensed company, the TSBPA requires a disclaimer that it isn't a CPA firm.

We'd encourage you to look Moji up before you ever talk to us. Moji Shobowale is a licensed CPA in Texas and Illinois.

12

Looking for a CPA in McKinney or Anywhere in DFW?

If you're looking for a CPA in McKinney, Allen, Plano, Prosper or anywhere in Dallas-Fort Worth, we'd love to earn your business. We'll be honest if a bookkeeper or tax preparer alone would serve you better.

Here's how to start. Book Your Free Books & Tax Review. We'll review your books and last year's return and send you a one-page summary of what's working, what's broken and what to fix first. Whether you're in Allen, Plano, Prosper or Dallas, it works the same way.

Book Your Free Books & Tax Review or call (469) 712-4199.

More in Hiring an Accountant. If you run a crew, see our job costing guide for DFW contractors.

This article is general information, not tax or legal advice for your situation. Talk with a CPA before acting on it.

Moji Shobowale, CPACPA · Texas & Illinois · QuickBooks Online ProAdvisorMoji started her career as an auditor and now helps DFW business owners keep clean books and plan their taxes all year.