Outsourced Bookkeeping Services: Scope, Deliverables, and Cleanup

Let's address the elephant in the room: your books are probably a mess. Maybe not a complete disaster, but if you're being honest, there are transactions categorized as "miscellaneous," receipts you never recorded, and that reconciliation from three months ago you never quite finished.

Here's the good news: you're not alone. According to a study by Intuit, 40% of small businesses say bookkeeping is the worst part of running their business. The better news? Outsourced bookkeeping services can take this headache off your plate entirely. But before you hand over your shoebox of receipts, let's talk about what outsourced bookkeeping actually includes, and what you should expect to receive.

What Outsourced Bookkeeping Actually Includes
Bookkeeping sounds simple - you record financial transactions. But in practice, it involves dozens of specific tasks that need to happen consistently and accurately.

The Core Services
Transaction recording and categorization. This is the foundation - recording every dollar that comes in or goes out of your business and categorizing it correctly. This includes sales and revenue from all sources, expenses and purchases, payroll transactions, loan payments, and owner investments and draws. Proper categorization matters because it affects everything from your profit and loss accuracy to your tax deductions.

Bank and other account reconciliation. Each month, your bookkeeper matches your accounting records to your bank and credit card statements to catch errors, missing transactions, or irregularities. This isn't just good practice - it's essential for knowing your true financial position.  Cash generation and use is the heart of every organization.

Accounts receivable management. Tracking who owes you money, when invoices are due, and following up on late payments. This directly impacts your cash flow.

Accounts payable management. Recording bills, ensuring they're paid on time (but not early), and taking advantage of early payment discounts when they make sense.

Monthly financial statements. At a minimum, you should receive a Profit and Loss statement, Balance Sheet, and Cash Flow statement. These aren't just numbers on a page - they tell you whether you're profitable, what you own versus owe, and whether you'll have enough cash to operate.

General ledger maintenance. Think of this as the master record of all your financial transactions. Your bookkeeper maintains the backbone of your accounting system.

Value-Add Services
Many outsourced bookkeeping services include additional capabilities like contractor payment tracking, 1099 preparation, policy creation and compliance monitoring, custom reporting and analysis beyond standard financial statements, and financial process consulting to improve your systems and lower your risk going forward, among others.

What You Should Expect to Receive (And When)
One of the biggest frustrations with bookkeeping is not knowing what to expect or when.

Monthly Deliverables
Each month, you should receive your Profit and Loss statement, Balance sheet, Cash flow statement, account reconciliations, accounts receivable aging report, accounts payable aging report, and any custom reports, among others, that you've requested.  All of this needs to be received in a time frame when the information is still relevant.

Beyond scheduled deliverables, you should have real-time access to your accounting system, scheduled check-ins at least monthly, responsive communication with questions answered within one business day, and a clear escalation path for urgent issues.

Cleanup: Why It Matters and How to Do It
It's November. Your books are behind.  What now? If you have an effective outsourced accounting solution, you should not have much “year-end clean-up.” However, if your records are not in good condition, fear not!  An outsourced accounting group is accustomed to performing cleanup activities as it begins service with a new client.  

It is crucial to get the accounting records “cleaned up” at a point in time, so one has a clean beginning, unaffected by past issues. Without clean books, you might not actually know if you made money. Messy books also increase risk. If you need a loan or a line of credit, lenders are leery of companies with unreliable financials. You also run the risk of making bad decisions, relying on inaccurate financial information.

Cleanup Process
A thorough cleanup starts with completing bank account reconciliations. Reconcile every month you're behind (or pick a month to make all of your adjustments through that date; this will not make sure every period is right, but will provide a clean starting point for subsequent periods) - this is foundational. Until your bank accounts are reconciled, you can't trust any other numbers.  In general, cleaning up one's accounting records would include steps similar to those noted below.


​This involves comparing the company's internal records with external statements, such as bank statements or vendor statements, to ensure that all transactions are accounted for and discrepancies are identified and resolved.

Review and Adjust Journal Entries: Ensure that all journal entries are accurate and complete. This may involve making adjustments for accrued expenses, prepaid expenses, and other necessary adjustments to reflect the true financial position of the company.

Verify Accounts Receivable and Payable: Confirm that all invoices issued and received are recorded correctly. This includes ensuring that all customer payments are accounted for and that all supplier invoices are processed.

Inventory Count and Valuation: If applicable, conduct a physical inventory count and reconcile it with the inventory records. Adjust the inventory valuation to reflect any discrepancies.

Depreciation and Amortization: Calculate and record depreciation and amortization expenses for the month to allocate the cost of tangible and intangible assets over their useful lives.

Review and adjust judgmental accounts.  This would include reserves for bad debts, inventory obsolescence, and damage, etc.

Financial Statement Preparation: Prepare the monthly financial statements, including the balance sheet, income statement, and cash flow statement. Ensure that these statements accurately reflect the company's financial position and performance for the month.

Review and Approval: Have the financial statements reviewed and approved by the appropriate personnel, such as the finance manager or controller, to ensure accuracy and completeness.

Close the Books: Once all adjustments and reviews are complete, close the accounting books for the month. This involves locking the accounting period to prevent any further changes to the financial records for that month.
By following these procedures, one can ensure that the monthly financial statements are accurate, complete, and reliable.

The Realistic Timeline
How long does cleanup take? The timeframe depends on how far behind you are, the scale of your organization, and just how “messy” the records are.  This can range from days to many weeks.

While this “cleanup process can be painful, until one gets a clean starting point, there can be no assurance of accurate financial statements going forward.  Accordingly, if you have messy accounting records, the cleanup process will likely be an outsourced accounting partner’s first task.

Struggling to get timely, accurate financials? Finding it hard to interpret your numbers or keep reliable accounting talent in place? You’re not alone, and you don’t have to tackle it alone. Lauber’s Outsourced Accounting team is built to bring clarity, stability, and real financial insight to your organization. Let’s talk about how we can support you and move your business forward.