CPA, enrolled agent, bookkeeper or software: who does what

"Accountant" covers several jobs. Keeping the books (recording and categorizing every transaction), preparing the tax return, giving tax advice, and representing you if the IRS writes are different services, and different people are allowed to do each. The table sorts them out; the rest of the post covers when each is worth paying for and how to check a preparer before you hand over your Social Security number.

Who does what

Practice before the IRS by CPAs, enrolled agents and attorneys is governed by Treasury Department Circular 230. Enrolled agents specialize in taxes; CPAs also do audits, financial statements and business advice, and may or may not focus on taxes.

Which one you need

Fees vary by city and by how organized your records are, so ask for a written quote that says what's included: the federal and state returns, estimated payment vouchers for next year, and whether answering an IRS letter about this return costs extra. A preparer who gets a clean expense summary and every 1099 in one email usually charges less than one who gets a shoebox.

How to check a tax preparer

1. Look the person up in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. It lists CPAs, enrolled agents, attorneys and Annual Filing Season Program participants who hold a current PTIN.
2. For a CPA, also check the state board of accountancy's license lookup.
3. Ask about the fee before you hand over documents. The IRS warns against preparers who base the fee on the size of your refund.
4. Make sure the refund goes to your account, not the preparer's.
5. Never sign a blank return. Read the return before you sign it, and check that the preparer signs it and includes a PTIN; a paid preparer who won't sign is a red flag the IRS calls a ghost preparer.
6. Ask who will answer if the IRS writes about the return, and whether that person can represent you.

Software, a service or a person

Between doing it all yourself and hiring a CPA, there are services that combine software with a professional. Keeper's Standard plan, $199 a year on its site, includes expense tracking and a return reviewed by a tax professional; its Business plan, $1,199, is for S corps. QuickBooks Solopreneur sells live help from a tax expert starting at $169 on top of the software. The tax software comparison and the bookkeeping software comparison have the current prices.

Before you pick a service that keeps your books for you, read what happened to Bench, the bookkeeping service that shut down in December 2024. Whoever does the work, keep your own copies of statements, ledgers and receipts.

What to hand any of them

• Every 1099-NEC and 1099-K you received, and your own list of income by client.
• Expenses by category, with receipts available; see Schedule C expense categories.
• Dates and amounts of estimated tax payments.
• Last year's return, and any IRS or state letters.

Where SoloWOS fits

SoloWOS doesn't keep books or prepare returns. It produces the inputs: paid invoices for income, and an expense log you can keep with receipts and export to CSV for a bookkeeper or preparer. The freelance profit and loss statement shows the summary most preparers ask for.

General information about who can prepare returns and represent taxpayers, based on IRS pages checked October 23, 2026. Not tax or legal advice.