ACCOUNTING TIPS & NEWS
What Is Monthly Bookkeeping—and Why Your Small Business Needs It
By Anna Kovchina, CMA & Founder of AKcounting, LLC – ak-counting.com
As your business grows, managing your finances becomes more complex. Whether you’re just starting out or scaling your operations, having accurate books is critical for success – and peace of mind.
That’s where monthly bookkeeping comes in. It’s one of the most efficient and affordable ways to stay on top of your business finances – especially with the help of remote bookkeeping services.
But what does monthly bookkeeping actually involve? And how do you know if it’s the right fit for your business?
Let’s dive into the essentials.
What Is Monthly Bookkeeping?
1. Transaction Categorization
2. Account Reconciliation
The bookkeeper reconciles your bank and credit card accounts—making sure the balances match the statements. If there’s a discrepancy (like a check that hasn’t cleared), it’s documented and resolved. We also reconcile other key balance sheet accounts such as loans, though not always monthly.
3. Financial Reporting
You’ll receive clear financial reports – Profit & Loss and Balance Sheet statements – with optional month-over-month comparisons. These reports help you understand your business performance and spot potential issues early.
4. Ongoing Support
Why Not Just Use QuickBooks?
Real Example #1
A client came to us after using automated rules to categorize all deposits as revenue. In reality, some of those deposits were personal contributions used to cover payroll. The software mistakenly recorded them as business income, inflating the revenue – and the business was about to pay taxes on money it never actually earned. We caught the error and corrected it just in time.
Real Example #2: When DIY Goes Wrong
Another small business upgraded to an advanced QuickBooks Online (QBO) subscription thinking it would solve everything. They paid for extras like live expert support and premium features, spending far more than a basic bookkeeping for small business plan would have cost.
But they tried to handle it all themselves – setting up incorrect income and expense accounts, creating faulty categorization rules, and ending up with completely inaccurate financial reports. Expenses were coded as income. Financials were unusable.
By the time they reached out to us, we had to undo everything, clean up the books, and rebuild their chart of accounts from scratch. It took valuable time – but with our help, they’re now on a reliable monthly bookkeeping track.
The Truth About DIY Bookkeeping
One of the biggest misconceptions small business owners have is that they’ll “get around” to bookkeeping. But in our experience?
We’ve never seen a business owner who consistently does their own bookkeeping every month.
It gets postponed. Life gets busy. And soon, you’re making important decisions without looking at up-to-date financials. That’s like driving in the dark without headlights.
Meanwhile, a professional can do the same work in a fraction of the time—with greater accuracy. What takes you hours (or days), we can do in a couple of hours – correctly. It’s not just about saving time. It’s about making smarter decisions, based on real numbers.
Most small businesses use the cash basis accounting method—recording income when received and expenses when paid. Simple, right?
But even with this method, mistakes can happen. Here are a few examples:
– Payroll: Typically includes three separate payments—net pay, payroll taxes, and provider fees. IRS rules require reporting gross wages and employer taxes correctly, so you can’t record them based just on bank statements. That’s why we need access to your payroll reports.
– Loans: Deposits may be lower than loan principal due to fees. Monthly payments include both principal and interest, which need to be split out correctly to avoid overstating expenses or debt.
This is where expert remote bookkeeping services add value—ensuring accuracy and compliance.
Personalized Service, Wherever You Are
We proudly provide remote bookkeeping services that are efficient, reliable, and tailored to your needs – but that doesn’t mean we’re impersonal.
If you’re local to Irvine, California, we’re always happy to meet with you in person to get started. Sometimes, it’s just easier to connect face-to-face. After that, most of the work – and future meetings – happens online. That’s not only more efficient for everyone, it allows us to serve businesses across California and beyond.
We currently support clients throughout the state, as well as in other parts of the U.S. – all with the same level of accuracy, responsiveness, and personal connection. You’ll always know who’s working on your books and have direct access when you need it.
What We Need to Get Started
When onboarding for monthly bookkeeping, we’ll ask for:
– Company documents (EIN, formation details)
– Prior-year tax return
– Bookkeeping software access – or we’ll help set one up
– Read-only access to bank and credit card accounts
– Access to payroll and payment processors (Stripe, Square, etc.)
– Loan documents or portals access
– Fixed asset purchase agreements
We know this is sensitive information. That’s why we use written information security policies (WISP), portals upload and include non-disclosure terms in our agreements – for your peace of mind.
Is Monthly Bookkeeping Right for You?
Monthly bookkeeping is ideal if:
– You or your staff handle day-to-day transactions but need oversight
– You want accurate books for tax filing and compliance
– You want to understand your business’s financial health
– You’re tired of errors and want things done right
– You don’t want to waste time trying to figure it out on your own
– You want a real person, not a faceless system, handling your books
With basic bookkeeping for small business, you get professional support at a fraction of the cost of hiring in-house. And when you’re ready to grow, we can expand into payroll, budgeting, and AP/AR services – with zero learning curve.
Book Your Free Consultation and Review Today
Let’s take the stress out of your business finances.
Whether you’re starting fresh or need a cleanup, our team is here to help.
Book your free consultation and bookkeeping review now and discover how our accurate, personalized remote bookkeeping services can help your business grow – locally in Irvine, across California, or anywhere in the U.S.
Book your free 30 minute
consultation with AK-COUNTING today
ABOUT ANNA KOVCHINA, CMA
Anna Kovchina, CMA is the Founder of AKcounting, LLC. Anna Kovchina has extensive experience in financial accounting from multinational corporations – including Hyundai – to emerging startups.
“I believe clear communication is the most important aspect of my role. Clients know they can expect professional, dependable support and and that I will get to know their businesses to provide the best guidance and advice possible.”
Get more helpful tips and information about Anna’s Bookkeeping and Accounting for small and growing businesses at AK-Counting.com
