What to Expect from a Monthly Accountancy Service
Running a business involves juggling many priorities – from sales and hiring to customer communications. Accountancy services help businesses respond to changing market demand by providing timely financial insights to inform better decision making. Amidst all this your bookkeeping shouldn’t be another fire to put out. Engaging a monthly bookkeeping service means your finances will be accurate, up to date and ready to inform your decisions all without you having to live inside QuickBooks or any other accounting software. Small businesses need comprehensive bookkeeping services to manage their finances effectively. This article will give you a clear and practical overview of what such a service includes, how the monthly workflow works and how you can get the most out of it.
Onboarding and Setup
Getting started with a bookkeeping service is a simple process designed to get your business set up for success from day one. Many small business owners like to have professional accountants manage their books so they can focus on growth. Choosing an accountant with experience in your industry can be beneficial as they understand the sector specific challenges and opportunities. The onboarding phase involves connecting your financial accounts, uploading essential documents and providing context for your transactions. We will guide you through each step, ensuring your financial statements are accurate and your records are organized efficiently. This collaborative approach means you’ll have expert support as you transition, clear communication and tailored advice to address your unique needs. By leveraging the expertise of experienced professionals you can expect a smooth setup that keeps your accounts up to date and compliant with all relevant regulations. The result is more confidence in your financial management and the peace of mind that comes from knowing your bookkeeping is in good hands.
The Core Deliverables (Every Month)
A reliable bookkeeping service will deliver a comprehensive package of deliverables every month to keep your financial management on track, tailored to clients from various industries. These services support businesses of all sizes from small to larger organizations. First and foremost are bank and credit card reconciliations. This involves matching every transaction recorded in your accounting system against the actual bank and credit card statements, so your balances are correct and complete. Small businesses need expert support in managing financial statements and expense overviews. Accurate reconciliations are essential to control your company’s finances and mitigate risk. Next all transactions are categorized. Income and expenses are coded to the right accounts – cost of goods sold vs operating expenses – and vendor or customer details and class or location identifiers if your business uses these. This level of detail supports better financial reporting and insights.
Every month you will receive clear and easy to understand financial statements. Accountants prepare these for clients so they are accurate and reliable. These will include the Profit & Loss statement (also known as the Income Statement) which shows how much your business earned and spent; the Balance Sheet which shows what your business owns and owes; and the Cash Flow statement which shows the actual movement of money. Comprehensive accounting services include bookkeeping to strategic planning for small businesses. A good bookkeeping service will also provide a brief commentary on what changed during the period, why it matters and where to focus next for growth. These real time financial insights allow business owners to make on the fly decisions about spending and savings. Financial planning is also included as part of the monthly deliverables.
To ensure completeness a month end close checklist is run. This includes making adjusting entries such as depreciation, payroll accruals and loan interest, reviewing uncleared transactions and performing “tie-outs” to confirm nothing is missing. Small businesses like to have direct access to dedicated accounting experts for personalized support. This thorough process keeps you compliant with accounting standards and regulatory requirements and includes audit support as part of the deliverables. Reputable firms also offer auditing and audit services as part of the deliverables to ensure accuracy and regulatory compliance as you grow.
If applicable sales tax and compliance support is another deliverable. This involves tracking taxable sales, compiling returns and coordinating filings or preparing the data for your tax prep or filing service. Accountants handle taxes by optimising strategies and minimising liabilities, giving you peace of mind and a comprehensive solution for your business. Expert tax preparation services help businesses manage federal and state income tax filings, ensuring compliance and reducing the risk of errors.
Visibility into accounts receivable (A/R) and accounts payable (A/P) is also provided. Aging reports show who owes you money, who you owe and what payments are overdue. Some bookkeeping services offer optional light bill-pay workflows and invoicing support to streamline further. Bookkeeping and accounting services help small businesses and companies save time and money by streamlining financial processes and reduce the stress of managing finances especially during busy periods like tax season. Businesses using outsourced accounting can focus on their core operations and allocate more resources to growth and innovation.
Finally a list of questions and answers is maintained to keep communication clear and actionable. This open items list covers any odd charges, missing receipts or significant vendor changes that require your input so issues are addressed promptly without overwhelming you.
Choosing the right accountant or team of accountants means the right fit for your business’s needs and trusted support for growth and financial management across industries.
What the Monthly Workflow Looks Like
The monthly bookkeeping process follows a structured workflow to deliver accurate and timely financial reporting. Week 1 your bookkeeper imports and reconciles data by pulling bank and credit card feeds along with statements. Transactions are categorised and supporting documents are attached. Clients can log into the platform at any time to access real time financial data and updates. Modern accounting relies heavily on technology so make sure to check if a firm uses up to date software and cloud based solutions. The use of up to date technology and cloud based solutions means greater efficiency and accuracy throughout the monthly workflow. Any exceptions or missing information are flagged for follow up.
Week 2 is reviews and adjustments. Payroll entries and owner distributions are recorded and revenue is recognised properly based on your chosen accounting method—cash or accrual basis. Recurring entries such as software subscriptions, insurance and depreciation are posted to reflect ongoing expenses accurately.
Week 3 is the month end close and key reports are produced including the Profit & Loss, Balance Sheet and Cash Flow statements. Trend snapshots are also generated comparing current revenue to the last three months or analysing margin percentages. These insights help you understand your financial trajectory and identify areas for improvement.
Week 4 is the review or summary. This may be a 15 to 30 minute call, a Loom video walkthrough or a written summary. The discussion covers action items such as tightening up on specific categories, pursuing overdue receivables or adjusting pricing strategies so you can stay on top of your business finances.
What Your Bookkeeper Needs From You (to Keep Things Fast & Clean)
To keep the bookkeeping process fast and clean your bookkeeper will need certain inputs from you. Providing read-only access to your bank and credit card accounts or supplying statements by the 3rd of each month allows timely data import and reconciliation. Access to source systems like your point-of-sale (POS), payment processors such as Stripe or Shopify, payroll platforms and expense tools is also required for accurate transaction capture.
Clear policies help maintain consistency in categorization. For example defining what counts as cost of goods sold vs operating expenses, listing recurring vendors and specifying class or location definitions will guide your bookkeeper in producing accurate financial statements.
Having a simple routine for your team is key. This includes uploading receipts, tagging cardholders and answering one or two quick questions each month. A pro tip is to designate a single inbox—such as accounting@yourcompany.com—and appoint one “books point person” on your team. Consistency in communication beats last minute heroics, saving time and reducing errors. By partnering with our bookkeeping service you get ongoing support and strategic collaboration so your financial processes are always aligned with your business goals. Outsourcing your bookkeeping can also reduce the need to hire full-time employees for these tasks and give you access to specialized expertise without having to expand your internal staff.
What’s Not Included (or Is an Add-On)
While monthly bookkeeping services cover a lot of ground, some services are outside the scope or are add-ons. Many businesses choose to outsource these specialized accounting needs rather than hire in-house staff as outsourcing provides access to expertise without the cost and commitment of hiring full-time employees. Income tax preparation and planning for example usually requires a separate engagement, often paired with your bookkeeping but handled by specialized tax professionals. Outsourced tax services makes tax filing simpler and more efficient for businesses.
Full-service payroll is another area often excluded. While your bookkeeper posts payroll entries to your accounting system, the actual payroll processing is managed by a dedicated provider. Similarly controller or CFO services—such as budgeting, forecasting, pricing strategy and board reporting—are a higher level of financial management beyond routine bookkeeping.
Collections or vendor negotiations are not part of bookkeeping services. Complex inventory counts or job costing also require specialized attention and are usually scoped separately.Defining the scope of services upfront prevents surprise invoices and ensures expectations are aligned between your organization and the accounting firm. Transparency in billing is key to avoiding surprises when working with an accountant so you can have a smooth and trustworthy partnership.
Pricing Models You’ll See
Monthly bookkeeping services are offered through various pricing models based on the complexity and size of your business. These models are designed to fit clients from different industries and business sizes so each client gets a solution that fits their sector and operational needs. A fixed monthly package is common with pricing based on transaction volume, number of accounts and complexity of your operations. This provides predictability and allows you to budget for financial management costs.
Tiered bundles—Starter, Growth, Scale—offer increasing levels of deliverables as your business grows. Add-ons may be available for sales tax processing, catch-up work, inventory management or multi-entity consolidations.
The best accounting firms price transparently and review your service scope every 6-12 months as your business grows. This proactive approach ensures you’re always getting the right level of support.
How to Measure Value (Beyond “Are the Books Done?”)
When evaluating your monthly bookkeeping service consider value metrics beyond “are the books done”. Accuracy is key—your bank accounts should reconcile to the penny with minimal uncategorized transactions. Timeliness matters too—reports should be delivered by a certain date, e.g. 15th of each month so you can make decisions based on current data.
Clear communication is essential. You should receive a one-page summary of what changed during the period and what to do next. Decision support is another key factor—your bookkeeping service should provide insights into trends and key performance indicators (KPIs) like gross margin, customer acquisition cost to lifetime value (CAC-to-LTV) and cash runway. These metrics help you focus on the big picture and plan for growth.
Finally consider the time saved. Efficient bookkeeping reduces the hours you or your team spend on financial management so you can focus on core business activities. By streamlining your financial processes quality bookkeeping services can improve your work-life balance and give you more time to enjoy other aspects of your life and prioritize what matters most.
Questions to Ask Before You Sign
Before hiring an accountancy service for your monthly bookkeeping ask these questions:1. When will you deliver monthly reports? Set a clear service level agreement (SLA) with a specific day of the month.
How will we communicate? Will there be a shared task list, monthly calls or specified response times?
What’s your process for catch-up or cleanup work? Is this handled via fixed fees and what are the timelines?
Which accounting platform and integrations do you prefer? Common platforms are QuickBooks and Xero and compatibility with your existing tools is key.
How do you handle sales tax and 1099 filings? Who is responsible for filing and what are the deadlines?
What’s the backup plan if our point-of-contact is unavailable? Continuity is critical to avoid disruption.
Can you provide sample reports or a redacted month-end package? Reviewing examples helps set expectations for quality and detail.
Red Flags
Be wary if a bookkeeping service exhibits any of the following:
They only offer “data entry” without month-end close or commentary.
Reports are delivered weeks late so you can’t make decisions with current data.
There are no documented processes or plans for staff turnover.
You receive surprise hourly bills for routine tasks that should be covered under a fixed fee.
They won’t give you read-only access to your own accounting file which limits transparency.
Avoid these pitfalls and you’ll partner with a trustworthy and professional accounting firm.
Cash or Accrual—Which One?
Choosing between cash and accrual accounting methods affects how your financial data is recorded and reported. Cash basis records transactions when money moves, it’s simpler and suitable for very small or service-based businesses. Accrual basis records revenue when earned and expenses when incurred, it provides a more accurate picture of financial performance. This is better for businesses with inventory, subscription models or those that need meaningful margins and KPIs.
Many bookkeepers can maintain managerial accrual books for internal decision-making even if your tax filings are on cash basis, so you get the best of both worlds.
When to Upgrade to Controller/CFO Support
As your business grows your financial management needs become more complex. Consider upgrading to controller or CFO services when you start forecasting 6-12 months ahead for hiring, inventory or fundraising. These services provide budgeting, variance analysis, department-level P&L statements and pricing strategy support.If you have multiple entities or locations, controller or CFO support helps consolidate and analyze financial data across your organization. While monthly bookkeeping lays the foundation, controller and CFO services turn your financial data into forward-looking strategy and business advisory.
Quick Checklist (Pin This)
To keep your monthly bookkeeping service running smoothly, make sure the following are in place:
Bank and credit card statements and feeds are connected.
Month-end cutoff dates are defined with deliverables due by a specific day of the month.
Scope of services is documented including what’s included and excluded.
Sales tax and 1099 filing responsibilities are assigned.
One point of contact and one inbox for accounting requests.
Short monthly review cadence, e.g. call or written summary.
Bottom Line
A good monthly bookkeeping service delivers clean numbers on time with context and commentary. This allows you to make informed decisions and spot issues early so your business can stay financially healthy and grow. Financial health checks allow businesses to keep their books up to date for decision making. If your current bookkeeping process is messy or late, tightening up the workflow and setting clear expectations can pay for itself quickly.
If you’d like, this can be customized to your industry—e.g. e-commerce, professional services, construction, etc.—or formatted as a downloadable checklist to help you streamline your accounting even more. Contact us at Tharrington CPA, PLLC and we can help you find the right partner for your business’s financial management needs.