Basics
What Is Included in Bookkeeping Services?
A plain list of what a small business bookkeeping service does each month, and what is usually not included.
Bookkeeping services get described in a lot of different ways, which makes it hard to compare two quotes. Here is the plain list of what a monthly bookkeeping service should do for you, and what usually costs extra.
The monthly work you should always get
Every real bookkeeping service should do all of this, every month, without you asking.
- Categorize every bank and credit card transaction
- Reconcile each account to the statement so nothing is missing or double counted
- Collect and file receipts against the matching charges
- Record loans, transfers and owner draws correctly
- Close the month and give you a profit and loss and balance sheet
- Send you a short list of questions about anything unclear
What good services add on top
Better online bookkeeping services also give you a place to send receipts, a way to message your bookkeeper, and a record of who changed what and when. That trail matters if you are ever audited or you sell the business.
What is usually not included
Bookkeeping is not tax filing. Most services do not file your business return, run payroll, or give you tax planning advice unless you buy that separately. They do hand your accountant a clean file, which is what makes tax time cheap.
Questions to ask before you sign
Ask who does the work, how quickly you get answers, what happens when you are behind, and whether you keep ownership of your accounting file. If the answer to that last one is anything but yes, walk away.
Questions people ask
What is included in bookkeeping services?
Monthly categorization of all transactions, reconciliation of every bank and credit card account, receipt filing, a monthly close, and financial statements you can read.
Do bookkeeping services file my taxes?
Usually no. Bookkeepers keep the books accurate all year and hand a clean file to your tax preparer, which lowers what you pay at tax time.
Do I still need an accountant?
For tax filing and planning, yes. Bookkeeping and tax work are two different jobs and they work best together.
Want your books handled for you?
LedgerDude is outsourced bookkeeping for small business owners. We read your receipts, match your bank transactions and send you one short list of questions each month.