What do Bookkeeping Services Include?

Bookkeeping services include day-to-day recording, organizing, and reconciling your business’s financial records. A bookkeeper keeps your bank accounts, expense records, payroll information, and general ledger accurate so your accountant can complete tax preparation correctly, and you can rely on your financial reports when making decisions. At its core, bookkeeping is the backbone of financial management because it keeps your numbers clean, current, and usable. 

Below is a complete breakdown of what bookkeeping services include, with clear explanations and SEO-optimized structure. 

Core Tasks Included in Bookkeeping Services 

Transaction Recording 

Every financial activity must be entered into your general ledger, from sales to expenses to asset purchases. This includes supplier payments, customer invoices, payroll entries, and loan payments. Clean transaction recording ensures your books stay organized, and your profit and loss statements remain accurate. 

Categorizing Income and Expenses 

Bookkeepers categorize every entry into the right account. Proper categorization improves your profit and loss statements, your balance sheet, your cash flow statements, and the reliability of your financial records. This accuracy matters not only for decision making but also for tax preparation, since miscategorized transactions can affect deductions and CRA compliance. 

Bank and Credit Card Reconciliation 

Bank reconciliation is one of the most important steps in bookkeeping. Your bookkeeper compares your accounting software to your bank statements and credit card statements, matching every transaction to ensure nothing is missing or duplicated. This process also helps detect errors, incorrect charges, or fraudulent activity. Reconciliation gives you confidence that your bank accounts truly reflect your books. 

Accounts Payable Support 

Bookkeeping services often include managing outgoing payments. This covers recording vendor invoices, tracking due dates, preparing payments, and keeping supplier records organized. Strong accounts payable practices protect your cash flow and prevent late fees or missed payments. 

Accounts Receivable Support 

Bookkeepers may handle customer invoicing, payment tracking, and overdue follow ups. They maintain an accurate aging report so you always know who owes you money. This support is especially important for businesses that rely on consistent cash flow to operate. 

Receipt and Document Management 

Modern bookkeeping includes digital organization of documents. Your receipts, invoices, contracts, and bank statements are stored, categorized, and kept audit ready. Organized documentation saves you time during tax preparation and reduces the chance of errors. 

Payroll Support and Entry 

Although bookkeepers do not run payroll systems directly, they record payroll journal entries, reconcile payroll reports, and ensure vacation, benefits, and deductions align with your financial statements. This payroll support keeps your financial records consistent and reduces payroll-related discrepancies. 

Sales Tax Tracking 

Bookkeepers track GST or HST collected and paid, making sure your sales tax activity is complete and ready for filing. They identify taxable and non-taxable transactions and prepare the information needed for accurate returns. 

Monthly Financial Reports 

Most bookkeeping packages include monthly financial reporting. These reports often include: 

• Profit and loss statements 

• Profit and loss reports by month or category 

• Balance sheets 

• Cash flow statements 

• Accounts receivable aging 

• Accounts payable aging 

These financial reports show how much you earn, how much you spend, and how your cash moves through the business. 

Advanced Bookkeeping Services 

Some businesses require more than basic bookkeeping. Advanced services can include cleanup work, historical catch up, inventory tracking, and job or project costing. 

Cleanup and catch-up work focuses on fixing messy or outdated books. This may involve reclassifying transactions, clearing duplicates, correcting past errors, or bringing multiple years of records up to date. 

Many businesses also outsource software setup when moving to systems like QuickBooks Online. This includes setting up the chart of accounts, configuring integrations, and designing financial workflows. 

Inventory tracking and job costing help businesses understand profitability at a deeper level, whether by project, location, or product line. 

Outsourcing Bookkeeping vs Hiring In House 

Outsourcing bookkeeping, also called outsourced bookkeeping, is now common for small and medium sized businesses. It gives you access to experienced bookkeepers without hiring full-time staff. Outsourcing bookkeeping can reduce costs, improve accuracy, and give you access to professionals who specialize in bank reconciliation, financial reporting, and financial management. 

What Bookkeeping Does Not Include 

Although bookkeeping supports your accountant, it does not replace accounting. Bookkeepers do not offer: 

• Tax planning 

• Corporate tax preparation 

• Cash flow forecasting 

• Year-end adjustments 

• Audit support 

• Financial strategy 

These tasks fall under accounting, controller services, or CFO level advisory. 

Why Bookkeeping Matters for Small Businesses 

Accurate bookkeeping helps you manage cash flow, avoid CRA issues, and stay on top of your financial health. Clean financial records support loan applications, investor reporting, and smarter business decisions. Without proper bookkeeping, financial management becomes guesswork, and tax preparation becomes stressful and costly. 

If you want to understand how bookkeeping differs from accounting, we have a separate article that explains the differences in detail titled ‘Bookkeeping vs Accounting’. 

Need Professional Bookkeeping? 

If you want accurate books, reliable financial reports, and peace of mind every month, Mesa CPA can help. 

Book a consultation with Mesa CPA and get bookkeeping support that keeps your business organized and audit ready.