Everything you need to know about bookkeeping

What’s your scope?

This may sound like a simple question, but there is a big variation between the services that bookkeepers offer. Your requirements will also vary depending on your own skills and the scope of the work your bookkeeper completes.

What your bookkeeper should be able to do:

Reconciling monthly bank, credit card, and loan statements

Entering vendor bills, and client invoices, categorizing company expenses, and paying suppliers

Checking the coding of transactions to ensure they have been coded to the correct account and with the correct tax treatment

Preparing financial documents such as Profit and Loss and Balance Sheet Interpreting reports and telling the story behind the numbers

Processing payroll

Preparing 1099s and 1096s for electronic filing

What’s their level of expertise?

You want your bookkeeper to process your accounts accurately and to communicate with you in a time efficient and effective manner. A good bookkeeper has established financial processes that they follow each time to ensure they process transactions accurately. They should follow recommended GAAP procedures – Generally Accepted Accounting Principles – issued by the Financial Accounting Standards Board.

Your bookkeeper should be able to:

A good bookkeeper has established financial processes that they follow each time to ensure they process transactions accurately. They should follow recommended GAAP procedures – Generally Accepted Accounting Principles – issued by the Financial Accounting Standards Board.

What’s the scope of their expertise?

The best bookkeeping service is familiar with a wide variety of businesses.
Their broad background means they will understand how your business works.

How do they work with their clients?

Do they outsource your bookkeeping? Does the person who reconciles your accounts also provide your monthly financial statements? How do they normally communicate with their clients? What are they like to communicate with? Are they clear and concise, and speak or write in language that makes sense to you? What is the expected turnaround time for responding to your questions and needs?

Your bookkeeper should be able to:

Explain your businesses financials with confidence and clarity.

How do they price their services?

Is there a fixed monthly fee, or do they charge by the hour?

Your bookkeeper should be able to:

Does the service charge a fixed monthly fee for services? Or do they work with you to estimate monthly how much time is needed to complete your bookkeeping, so you can build bookkeeping costs into your budget.