What does a monthly bookkeeping service actually include?
Outsourced bookkeeping can mean anything from data entry to running your whole finance office. Here's what a full monthly service should cover, and the questions to ask before you hire one.
Key takeaways
- A full service covers reconciliations, invoicing, bills, expenses and a monthly report
- Payroll and sales-tax filing are often included, so ask
- The test of good bookkeeping is a year-end with no surprises
"Bookkeeping" covers a lot of ground. Some services only type in receipts. Others run the entire money side of your business. Knowing the difference helps you compare quotes and avoid paying for a job that's only half done.
The core of a monthly service
A complete monthly bookkeeping service should include:
- Reconciliations. Every bank account, credit card and loan matched to the books each month, so the numbers are real.
- Sales and invoicing. Invoices sent, payments recorded, and overdue customers followed up.
- Bills and payables. Supplier bills entered and scheduled so they're paid on time, without paying twice.
- Expenses. Receipts captured and categorized, ideally from a photo on your phone.
- A monthly report. A short summary in plain language: what came in, what went out, who owes you and what needs a decision.
Often included, so ask
Payroll, sales-tax returns (GST/HST) and year-end preparation are sometimes part of the package and sometimes billed separately. A good provider will tell you up front.
Signs you're ready to hand it off
- You're doing the books at night or on weekends
- You don't know your real cash position without logging into the bank
- Year-end takes weeks of digging through paperwork
- You've had a late-filing notice from the CRA
The real test
Good bookkeeping is boring in the best way. Your numbers are current every month, and year-end is a hand-off, not a scramble.
Sources
This article is general information, not advice for your situation. Rules and rates change, so talk to us before acting on it.