Bookkeeping services encompass many different areas. From general ledger management to payroll to creating financial reports, a bookkeeper must wear many hats. In this bookkeeping services list, we’ll highlight eight of the most essential bookkeeping services across the board, and explain the details of how bookkeepers serve their clients.

1. General Ledger Management

This is one of the most fundamental yet important parts of online bookkeeping services and can include several different tasks.
  • Recording and organizing financial transactions, such as payroll processing, business purchases, and sales into a general ledger
  • Recording debits and credits a business owner makes to maintain an accurate balance of the ledger
  • Preparing the books for the month-end close to ensure client information is accurate
  • Preparing financial statements
  • Performing financial reporting to generate graphs that provide a detailed overview of things like income statements and balance sheets
  • Ensuring that client financial records comply with relevant federal, state, and local regulations
And if business owners are ever audited, a virtual bookkeeper will use their accounting software to help with both internal and external audits to streamline the process and get the situation under control. Outsourced bookkeeping services can go beyond these bookkeeping tasks and are tailored to the specific needs of each client, but these are the fundamentals that are critical for core business operations.

2. Transaction Classification

Another critical part of running a business that can benefit from accounting services is breaking transactions into different categories, as it serves two main purposes. One, it helps business owners maintain accurate financial reporting, which is crucial for tax filing. Two, it streamlines financial analysis, because a bookkeeper can see exactly how the business is generating revenue and where they’re spending money for an overarching viewpoint. Having this perspective allows them to better understand financial trends so they can make better decisions moving forward. In terms of specific types of transactions, a bookkeeper may categorize them into:
  • Income that can include money earned from the sales of products or services, as well as interest
  • Monthly expenses that can come from employee payroll, building rent, equipment, inventory management, utilities, and other overhead costs
  • Assets which can include things like property or equipment owned
  • Liabilities are any debts business owners owe, such as a commercial mortgage or outstanding invoices owed to vendors or supplier
Because transaction classification can be confusing for many business owners and transactions need to be continually reviewed, outsourcing bookkeeping to a certified public bookkeeper or a certified public accountant often makes more sense than handling this area of accounting in-house or paying for an expensive CFO service.

3. Bank and Credit Card Reconciliation

This is the part of bookkeeping where a professional looks at a business’s financial records to compare bank and credit card statements with internal records to see if they match. If there are any discrepancies, a bookkeeper accounting service will pinpoint exactly what the differences are, how much, and the dates on which they occurred. From there, a bookkeeping service will investigate further to see what caused the discrepancies and figure out what needs to be done to resolve them. Besides that, these business services document the bank and credit card reconciliation process from start to finish to make sure the information is properly documented. This is necessary in the event of an audit or if a financial institution like a lender wants to see the details. It’s also important to identify fraudulent activity because the quicker discrepancies are caught, the quicker action can be taken by an accounting firm to figure out what was the cause and how to prevent it from happening again. Because many businesses are continually making credit card transactions, it’s usually best for this to be a monthly bookkeeping service. Otherwise, if there’s a lengthy gap with statement comparison, they may not catch it in time.

4. Track Vendors and Manage 1099s

Most vendors, like freelancers and independent contractors, who reach a $600 threshold annually are required to receive 1099s at the end of the year for tax filing. Another core part of accounting services involves: Ensuring the appropriate vendors are identified Vendors are set up to receive 1099 forms 1099s are properly prepared and sent out to vendors Vendors fill out 1099s correctly and file them on time by the IRS deadline This ensures that each vendor’s financial records are accurately reported and IRS compliant. Otherwise, there may be penalties and/or audits. This aspect of accounting services is, admittedly, one of the more frustrating ones for many bookkeeping service providers. Requesting, tracking, and asking for revisions on 1099s can be a major headache for even the best online bookkeeping service. A helpful tool for streamlining this part of accounting is 1099 tracking software from Keeper, which allows a bookkeeper to see which vendors may require 1099s according to the reporting threshold and conveniently request them. 1099 tracking software Once a vendor has successfully filled out their information, Keeper automatically syncs it to QuickBooks Online or Xero, which can save a bookkeeping service a ton of time. The end result is accounting services spending far less time chasing down 1099s and a consistently high level of accuracy.

5. Process Payroll

Process payroll handles all aspects of payroll, which can include:
  • Calculating employee wages
  • Deducting taxes
  • Reporting taxes
  • Setting up employee payment methods like physical checks or direct deposit
  • Issuing payments
  • Keeping track of paid time off and benefits
  • Preparing W-2 forms
  • Creating payroll reports
Due to the number of moving parts involved with payroll processing, it’s easy to understand why many business owners prefer to use professional accounting services. Just look at what’s involved.
payroll process
Source: Innovature
Even small business bookkeeping with just a handful of employees can be difficult to handle. And for those with numerous employees, payroll can be incredibly difficult to manage with DIY bookkeeping. Not to mention, accurate payroll reporting is essential to maintaining compliance and is vital for getting employees successfully paid on time and without unnecessary friction. That’s why it’s common to offer payroll service as a central part of bookkeeping packages.

6. Send Invoices and Manage Accounts Receivable

There are three main components involved with sending invoices and managing accounts receivable with an online bookkeeping service. The first is creating customer invoices, which can include the products or services sold, the total amount, when payment is due, and any specific payment terms. Second is tracking payments, which is typically done through an accounting system. Here, bookkeeping services monitor when an invoice is sent out, whether it’s been paid or not, and how much longer a customer has to pay if it hasn’t been paid. Third is identifying overdue invoices so reminders can be sent. Besides getting invoices to customers, many accounting services will assume responsibility for hunting down late payments. With sending invoices and managing accounts receivable being so critical to cash flow management and building strong customer relationships, it’s an area of accounting that many businesses only entrust to a professional tax services provider. Whether it’s someone with a physical office that a client interacts with directly or a virtual bookkeeping service, this is critical to keeping the cash flowing so a business can grow and expand. Doing it efficiently requires using the right accounting software, automating tasks like identifying overdue invoices, and having an effective collections strategy in place to get business owners paid as quickly as possible.

7. Pay Bills and Manage Accounts Receivable

While sending invoices and managing accounts receivable involves collecting money that’s owed to a business, this area of accounting services involves paying money a business owes. One of the core parts is vendor management where a bookkeeper maintains an up-to-date list of vendors that a business purchases from and ensures invoices are consistently paid on time. Given that many vendors report to business credit bureaus, maintaining a positive payment history is integral to raising a business credit score. By making payments on time and having them reported to bureaus like Dun & Bradstreet, Experian Business, and Equifax business, this creates momentum that’s instrumental in building business credit. Another aspect of this area of accounting services is categorizing business expenses, which is important for simplifying tax preparation and generating financial reports. If, for instance, a small business owner wanted a bird’s-eye view of where their money is going when paying bills, this would provide them with the information they need to eliminate any guesswork. And if discrepancies ever arise, such as an incorrect invoice amount or a dispute over a bill being paid on time, bookkeeping services will often communicate with vendors on behalf of the client to resolve the issue and strengthen the relationship.

8. Create Financial Reports

Whatever the industry, having long-term success almost always requires data-driven decision-making. Having access to quantifiable data is what gives business owners big-picture insights, allowing them to identify trends on both the micro and macro levels. And financial reports are certainly no exception in accounting services and CFO services. The last task on our bookkeeping checklist is creating financial reports, which can include a wide variety of data, including:
  • Overall sales
  • Cash on hand
  • Total expenses
  • Spend by category
  • Assets
  • Liabilities
financial reports Comparing reports from different time frames using the best accounting software helps business owners see what their overall trajectory is and where they’re heading. A bookkeeper plays an integral role in generating these reports, and they leverage their accounting software to paint a clear picture, which they can share with clients. financial report summary   For business owners who are data-focused, they’ll almost always want accounting services that can provide detailed financial reports. Looking to ramp up your bookkeeping business? Check out the 10 Must-Follow Websites for Bookkeepers and How to Get Clients as a Bookkeeper.

Streamline Your Bookkeeping Services with Keeper

Providing top-tier bookkeeping services requires talent and skill. But it also demands that you use the right bookkeeping practice management software. Keeper is the first one-stop-shop platform that integrates with QuickBooks Online and Xero. It can help you run your business more efficiently, dramatically improve the client experience, and most importantly, speed up your month-end close. Learn more about how Keeper works here.