One reason bookkeeping quotes can be difficult to compare is that “monthly bookkeeping” does not mean exactly the same thing at every company. One service may include little more than transaction categorization. Another may include reconciliations, reporting, payroll support and ongoing communication with a dedicated bookkeeper.

Before comparing prices, make sure you know what you are actually buying.

The Core of Monthly Bookkeeping

For most businesses, the foundation is keeping financial activity accurately recorded and reconciled. That commonly includes:

• Reviewing and categorizing transactions
• Reconciling bank accounts
• Reconciling credit-card accounts
• Reviewing balances for obvious inconsistencies
• Maintaining organized bookkeeping records
• Producing regular financial reports

The exact scope should depend on the business rather than a generic checklist.

What Financial Reports Should You Receive?

Accurate bookkeeping should result in reports that help you understand the business. A profit-and-loss statement and balance sheet are common starting points, while some companies need additional reporting based on their industry or management needs.

The important question is whether the underlying books are accurate. A beautifully formatted report is not useful if the accounts behind it have not been properly maintained and reconciled.

Does Monthly Bookkeeping Include Payroll?

It can, but you should not assume that every bookkeeping package includes the same payroll responsibilities. Some businesses use a separate payroll provider while their bookkeeper makes sure payroll activity is correctly reflected in the books. Others need additional payroll-related support.

This is exactly the kind of scope item that should be clear before you agree to a monthly fee.

What About Accounts Payable and Accounts Receivable?

Paying bills, tracking customer invoices and monitoring amounts owed can be part of a broader bookkeeping relationship, but not every company needs the same level of support.

A business with a handful of recurring bills has very different needs from one processing substantial vendor activity or managing large numbers of customer invoices.

Industry-Specific Bookkeeping Matters

Some businesses need much more than standard transaction categorization. Contractors may need job costing, subcontractor tracking, progress billing, retainage and labor or material allocation. Nonprofits may need restricted-fund, grant, program-expense and board reporting support.

Those requirements are part of why bookkeeping scope—and price—can differ significantly among companies.

Does Monthly Bookkeeping Include Cleanup?

Usually, ongoing bookkeeping and historical cleanup should be thought of as different projects. If the existing books are months behind or contain significant errors, they may need to be corrected before a reliable monthly process can begin.

Capacity offers bookkeeping cleanup and catch-up services when that work is needed.

How Much Should Monthly Bookkeeping Cost?

The cost depends on how much work your business creates. Transaction volume is one of the biggest factors, along with the number of accounts and the complexity of the bookkeeping.

A business with a handful of transactions should not need to pay a fee designed for a company processing thousands. Capacity prices ongoing bookkeeping with a fixed monthly fee based on the work the business actually requires.

See How Much Do Bookkeeping Services Cost for a Small Business? for a deeper explanation.

Questions to Ask a Bookkeeping Company

• Will I have a dedicated bookkeeper?
• Which accounts will be reconciled each month?
• What reports will I receive?
• What is included in the monthly fee?
• Which services cost extra?
• How are questions handled?
• What happens if my books are already behind?
• Do I have to sign a long-term contract?