When it comes to managing the financial health of a business, bookkeeping plays a vital role. Effective bookkeeping ensures accurate financial records, timely reporting, and compliance with regulations. However, the scope of bookkeeping services can vary depending on the needs and requirements of each business. In this article, we will delve into the details and shed light on what is typically included in bookkeeping services.
By gaining a better understanding of the scope of bookkeeping, you can make informed decisions about your business financial management and choose the services that best suit your needs.
Bookkeeping is an ongoing process throughout the year. Here we have broken down the task of a bookkeeper into weekly, monthly, quarterly and yearly tasks.
Weekly Bookkeeping Tasks
- Enter deposits and payments
- Enter payables and receivables
- Pay any bills due
- Enter payroll/create payroll checks
- Update employee benefit information if benefits are pro-rated against actual hours worked
- Deposit Federal payroll taxes and withholdings (if a semi-monthly depositor)
- Mail requests for I-9s and/or certificates of insurance to new subcontractors
- Follow up on any past due accounts
Quarterly Bookkeeping Tasks
- Deposit Federal payroll taxes and withholdings (for monthly depositors)
- Deposit State payroll withholdings (if a monthly depositor)
- Enter principal and interest on any loan payments
- Review vendors for expired certificates of insurance and request updated information
- If collecting sales tax, review resale and nontax customers for any missing or expired ST-4 or ST-5 forms and request updated information
- Report and pay retirement benefits
- Review A/R and create customer statements or reminder invoices as needed
- Review A/P statements against possible missing or past due invoices to be paid
- Reconcile and pay sales and/or meals tax (for monthly filers)
- Reconcile bank and credit card accounts
- Create/review monthly profit and loss and balance sheet statements
- Create/review monthly inventory, sales, and other reports
- Monthly cost allocations
- If you pay estimated taxes, set aside funds for estimated or year-end taxes
Monthly Bookkeeping Tasks
- Prepare all quarterly payroll reports, including 941’s, WR-1’s, SUTA, etc. and pay any balance due
- If FUTA exceeds the threshold for annual filing, file and pay FUTA tax
- Reconcile payroll liability accounts against quarterly reports
- Deposit Federal and State payroll taxes and withholdings (for quarterly depositors)
- Reconcile and pay sales and/or meals tax (for quarterly filers)
- Create/review quarterly profit and loss and balance sheet statements
- Create/review quarterly inventory and sales reports
- Quarterly cost allocations
- Pay quarterly estimated taxes
Annual Bookkeeping Tasks
- Prepare year-end payroll and vendor statements: W-2’s, W-3’s, 1099’s, 1096’s, etc.
- File and pay FUTA (form 940)
- File and pay sales or meals taxes
- Verify and update employee withholding and address information
- Review employee benefits programs/update employee information
- Review vendors and services (telephone or internet service providers, credit cards, etc.)
- Update year-end inventory and capital assets in the books
- Review the status of any restricted grants; prepare reports for funding sources (nonprofits only)
- Review overhead expense allocations and adjust as needed (nonprofits only)
- Review company insurance coverage against inventory value, potential liabilities or increased revenue
- Prepare materials for workers’ comp insurance audit
- Prepare materials for liability insurance audit
- Review status of any owner loan accounts
- Prepare materials for accountant
- 5. Organize Your Paperwork and Digitize
Final Thoughts
Hiring an outside bookkeeping service will save you money and time while making your business more successful. Perhaps even more important, it will be less stressful.
Need help organizing your accounting in QuickBooks? Our experts are about your business running smoothly. If you need assistance with your books being updated, you’ve come to the right place.
Schedule a complimentary QuickBooks data file review today for a quick and easy QuickBooks health check.
