Bookkeeper, Accountant or CPA?

In a vacation rental property management company, the roles of a bookkeeper, an accountant, and a CPA (Certified Public Accountant) each have distinct responsibilities, though there can be some overlap. Here’s a breakdown of their typical tasks:

Hostaway Specific Bookkeeper

1. Recording Transactions: Entering financial transactions into accounting software such as quickbooks or xero. This is assisted by our direct connection to Hostaway data.
2. Managing Receipts, Bills, and Invoices: Organizing and tracking receipts, invoices, and other documentation. We rely on the host or manager to assist us in setting up rules for these.
3. Handling Accounts Payable and Receivable: Processing incoming payments and outgoing bills. This can be bills to cleaners or repair vendors, and income from any channel the manager advertises on, including direct bookings or phone sales.
4. Bank Reconciliation: Ensuring that bank statements match the company’s financial records. In this process every penny that comes into the bank and every transaction made on outside channels (Airbnb, VRBO, Booking.com, Expedia, phone sales, website sales) is matched. For channels that remove commission prior to payouts we create credit note entries so that gross receipts revenues are captured correctly.
5. Payroll Processing: Managing employee payroll and ensuring timely payments, including those for virtual assistants.
6. Maintaining Financial Records: Keeping accurate records of all financial transactions.

Accountant

1. Preparing Financial Statements: Creating income statements, balance sheets, and cash flow statements. This is done accordingly to each individual property in the portfolio.
2. Budgeting and Forecasting: Developing budgets and financial forecasts to help guide business decisions.
3. Analyzing Financial Data: Reviewing and interpreting financial data to identify trends and issues.
4. Tax Preparation: Preparing and filing tax returns, ensuring compliance with tax regulations. This includes researching and preparing local occupancy taxes.
5. Advising on Financial Strategy: Providing advice on financial strategies and helping to improve financial performance.
6. Internal Controls: Implementing and maintaining internal financial controls to prevent fraud and errors.

CPA (Certified Public Accountant)

1. Auditing: Conducting audits of financial statements to ensure accuracy and compliance with accounting standards.
2. Tax Planning and Consulting: Offering advanced tax planning strategies to minimize tax liabilities.
3. Compliance: Ensuring the company complies with all relevant financial regulations and standards.
4. Financial Analysis: Providing in-depth financial analysis and reporting for strategic decision-making.
5. Advisory Services: Offering advisory services on mergers, acquisitions, and other significant financial transactions.
6. Representation: Representing the company in case of IRS audits or other tax-related issues.

Summary

• Bookkeeper: Focuses on the day-to-day financial transactions and record-keeping.
• Accountant: Provides more comprehensive financial analysis, strategy, and tax preparation.
• CPA: Offers specialized services, including auditing, advanced tax planning, and high-level financial consulting and advisory services.