What a monthly bookkeeping service should deliver

There's no legal standard for a monthly bookkeeping package. Two firms can both say "monthly bookkeeping" and mean very different amounts of work. The only protection is getting the details written into your agreement, so here's what to ask for.

One test sums it up. Before you sign, ask: "Will I get reconciled books and a named set of reports by a set day each month, and what happens if earlier months turn out to be wrong?" A good firm answers that in one breath.

1. Every transaction recorded and categorized

Pin down which accounts feed the books: every bank account, credit card, loan and payment app, and every entity if you run more than one. Agree who supplies receipts and by when. If the fee assumes a transaction limit, get the number.

2. Accounts reconciled every month

Reconciling means matching your books to your bank and card statements so nothing is missing or counted twice. The IRS small-business recordkeeping guide, Publication 583, says plainly: "You should reconcile your checking account each month." Ask which accounts get reconciled, how differences are resolved, and what "closed" means for a month.

3. Reports, by a date you can hold them to

Bookkeepers produce reports such as a balance sheet and an income statement, also called a profit and loss. Agree which reports you get, how often, and by which day of the following month. Monthly reports aren't audited reports. They're your own numbers, put in order.

4. Payables, receivables and payroll, in or out

Paying your bills, chasing your invoices and running payroll are things many bookkeepers do, but none of them is automatically part of a monthly fee. Get a yes or no on each, and a price if it's extra.

5. Tax and advice, named as in or out

Sales tax filings, income tax returns, tax planning, forecasts and advice are often sold separately. The agreement should list which of them are included and which aren't, so a surprise invoice can't appear in March.

6. A plan for the months before they started

If your books are behind or messy, the firm needs a starting point. Agree the first month it takes responsibility for, the state of the opening balances, how many past months need cleaning up, and how that work is priced. Usually it's quoted separately from the monthly fee.

7. A named person and a way to reach them

Know who does your books, how you send them documents, and how quickly they reply. A client portal or a scheduled monthly call both count. "Just email us" is fine if you know whose inbox it lands in.

How to check before the first call

Our firm profiles record whether each firm documents these things on its own website: monthly bookkeeping, catch-up work, payables and receivables, payroll, month-end reporting, what a package includes, how onboarding works and when reports arrive. A firm that writes them down isn't guaranteed to deliver them. It has, though, given you something to hold it to.