Everything you need to know

A bookkeeper keeps the books updated as the business runs. This includes recording daily transactions, reviewing bank and payment feeds, matching entries, sending invoices, tracking outstanding payments, and flagging discrepancies early. Each week, they reconcile accounts, update vendor and customer balances, and keep cash flow records accurate. At the month-end, they close the books and prepare reports so the accountant or CPA can work with clean, reliable data instead of fixing issues.

A bookkeeper handles the day-to-day financial work that keeps the books current. This includes recording transactions, raising invoices, tracking payables and receivables, reconciling accounts, and making sure the numbers are updated throughout the month. An accountant steps in after the bookkeeper’s work is done. They review the books, check accuracy, make adjustments, prepare financial statements, handle compliance, tax filings, and higher-level analysis. The bookkeeper keeps the data updated and organized, while the accountant uses that data to interpret results and make formal financial decisions.

Yes, in most cases you do. Xero and QuickBooks automate data entry, but they do not review or correct what data comes in. Someone still needs to check entries, reconcile accounts, fix categorization issues, and close the books each month. Most problems in small businesses come from missed reconciliations, incorrect categories, or timing differences that software does not flag on its own. If your business has regular transactions, a bookkeeper helps catch these issues early, before they turn into larger clean-up work later.

The monthly bookkeeping fees vary based on transaction volume, complexity, and whether the support is local or remote. The ranges below reflect remote bookkeeping services, which many small businesses use for ongoing daily reviews, reconciliations, follow-ups, and month-end close. A full-time offshore remote bookkeeper typically costs between $420 and $960 per month, or roughly €390 to €890, while part-time support usually falls in the $215 to $420 range, or about €200 to €390. The hourly rates generally range from $6 to $12 while the cleanup work rates are separate. If books are behind, cleanup work often takes 20 to 60 hours, depending on how long updates have been missed.

Outsourcing is usually far cheaper than hiring in-house. A full-time offshore remote bookkeeper typically costs between $420 and $960 per month, or roughly €390 to €890, while an in-house bookkeeper in the US, UK, or Europe often costs $3,500 to $5,000 or more once salary, benefits, payroll taxes, software, and office overhead are included. For most small businesses, outsourcing delivers the same consistency at a much lower fixed cost.

Most small businesses need between 60 to 100 hours of bookkeeping work each month, depending on how active they are. Businesses with lower transaction volumes often need around 15 to 25 hours a week. Ecommerce businesses, agencies, and companies with multiple bank accounts or payment gateways usually sit closer to the higher end of the range because of frequent payouts, vendor activity, refunds, and reconciliations.

A business usually hires a bookkeeper when basic financial tasks start piling up. If reconciling bank accounts, updating invoices, or checking payouts regularly takes more than an hour or two each week, the workload has crossed that line. Another clear signal is month-end stress, when closing the books involves chasing missing entries or fixing mismatches. For startups, hiring a bookkeeper early often avoids larger clean-up work later, which typically costs more time and money than maintaining the books consistently from the beginning.

The month-end close is the process of finalizing the books for a completed month for a business. It usually includes reconciling bank and credit card accounts, identifying missing or duplicate entries, updating receivables and payments, reviewing expenses, and recording any required adjustments. Once everything matches the statements, basic reports like the balance sheet and profit and loss are prepared and ready for review by an accountant or CPA.

If your bank balance does not match what appears in your accounting software, the records are off. When invoices or expenses stay uncategorized for weeks, or you cannot generate a clean profit and loss report without digging through entries, your books are a mess. Another common signal is when your accountant asks for the same documents every month because the numbers keep changing. Month-end often makes the issue obvious. If closing the books regularly takes longer than expected or brings up new issues each time, the books need attention.

Yes, when access is set up correctly, outsourced bookkeeping is very secure. Most businesses give bookkeepers limited permissions inside accounting software, so they can record transactions, reconcile accounts, and prepare reports, without the ability to move money or approve payments. This keeps control firmly with the business owner. In many cases, outsourcing is safer than local setups because all activity happens inside cloud systems with clear audit trails, making every change visible and easy to review.

Yes. Xero and QuickBooks are built for remote access, so a bookkeeper only needs a user login with the right permissions. They can update entries, reconcile accounts, run reports, and manage the books in real time without any local setup. Most remote bookkeepers already work daily with tools like QuickBooks, Xero, Sage, Zoho Books, Tally, and Wave. In most cases, access can be set up, and work can begin within an hour.

Most offshore bookkeepers work around the client’s business hours or follow a simple handover routine. A common setup includes daily updates done during client’s off-hours, with a short overlap window for questions or clarifications if needed. Since bookkeeping is task-driven and does not require constant meetings, time zones rarely create friction. In practice, many businesses find it helpful because entries are updated overnight, and the books are ready to review the next working day.

Getting started is usually straightforward. A bookkeeper typically needs access to accounting software, a list of customers and vendors, a chart of accounts, recent bank or credit card statements, and clarity on how transactions are currently categorized. If you have any existing processes on how things are handled, these help as well. Once access and structure are in place, the day-to-day work becomes routine, and most setups are completed within a day or two.

Cleanup tasks usually depend on how far behind the books are. If a business is only one or two months behind, cleanup often takes less time. But if the books have not been updated for a long time, cleanup can take anywhere between 60 to 80 hours. It can also increase if there are multiple bank or payment accounts or missing statements. Ideally, cleanup is a one-time effort, but it requires focused work because each entry has to be reviewed, corrected, and reconciled before the books can be closed properly.

Ideally, yes. Ecommerce bookkeeping is more complex than a typical service business as it includes inventory adjustments, multiple bank feeds, marketplace payouts, payment gateways, refunds, and returns. A general bookkeeper can handle this work, but only if they are already familiar with platforms like PayPal, Stripe, Razorpay, Shopify, WooCommerce, and Amazon. The volume and frequency of transactions in ecommerce businesses is higher and usually needs around 60 to 80 hours of bookkeeping work each month to keep everything updated and reconciled properly.

A bookkeeper records inventory and prepaid expenses in a way that spreads their impact correctly over time. Inventory movements are updated as goods are purchased and sold, cost of goods sold is recorded when sales happen, and vendor payments are tracked against stock levels. Prepaid expenses, such as rent or software subscriptions paid in advance, are recorded first and then adjusted monthly, so the full amount does not hit the profit and loss statement at once. When inventory tools or POS systems are used, the bookkeeper matches their data with the accounting software to keep records aligned.

Most small businesses receive three core reports each month. It includes a cash flow summary, a balance sheet, and a profit and loss statement. Owners can also ask for receivables and payables’ ageing reports, weekly sales summaries, or a breakdown of major expenses. The reports should be accurate, consistent, and ready on time so the accountant can review them without having to correct the entries.

Bookkeepers usually support payroll and tax work, but they do not run payroll or file taxes. Their role is to record payroll entries, match pay slips with bank transactions and ensure payroll and tax-related amounts are classified correctly in the books. A payroll provider, an accountant, or a CPA can handle actual payroll processing and tax filing as these tasks involve compliance checks and statutory responsibility.

Yes. Bookkeepers routinely work with accountants and CPAs. The bookkeeper keeps the records updated during the month and prepares clean reports. The accountant reviews these reports, makes any required adjustments, and handles compliance-related work. The CPA then steps in for tax filings, audits, or statutory matters.

The process for selecting the right bookkeeper includes checking whether they are comfortable with your accounting software and the type of transactions your business handles. They should also be able to explain how they deal with missing entries, reconciliations, and month-end close, and how they manage multiple clients without delays. A good sign is when they can clearly explain their workflow and share examples of similar work they have handled before.

Most bookkeepers work with standard accounting software such as QuickBooks, Xero, Zoho Books, Tally, and Sage. For ecommerce businesses, they also handle platforms like PayPal, Stripe, Razorpay, Shopify, Amazon Seller Central, and other POS systems. Alongside these tools, spreadsheets such as Excel or Google Sheets are often used for reconciliations, vendor tracking, and cash flow checks where a more flexible view is needed.

Yes, as long as the workload for each company is reasonable. For many small businesses, bookkeeping typically takes between 460 to 80 hours a month, which allows one bookkeeper to support two or three clients without quality slipping. What matters most is transaction volume and complexity. A bookkeeper can manage multiple companies effectively when the work is steady, well-scoped, and does not involve constant catch-up or frequent exceptions.

Yes, for many small businesses it makes complete sense. In the first year of their business, founders often end up spending time updating records, fixing entries, or searching for data at the end of the month. Outsourcing bookkeeping early helps keep the books organized from the start and avoids costly cleanup work later. It also makes life easier for accountants and investors who need accurate numbers when reviewing the financials of the business.

Asking the right questions is important. You should start by checking whether they are comfortable with your accounting software and understand the type of transactions your business runs. Then ask how they handle routine updates, reconciliations, missing entries, and mismatched balances, and what their month-end close process looks like. It also helps to know whether they have worked with businesses similar to yours. Reviewing a few past reports or giving a small test assignment usually provides a clear sense of their working style and attention to detail.

In small businesses, skipped reconciliations usually show up later as unexpected discrepancies that take time and effort to untangle. When accounts are not reconciled regularly, bank balances differ from the software; invoices go missing, expenses remain uncategorized, and reports stop reflecting reality. The longer reconciliation is delayed, the more time it takes to fix, and the harder it becomes to trust the reports.

A bookkeeper supports cash flow planning but does not fully own it. They can track inflows and outflows, maintain a cash flow sheet, and highlight unusual months or gaps. Long-term budgeting, forecasting, and scenario planning are usually done by an accountant or finance head. The bookkeeper’s role is to keep the numbers accurate, so planning decisions are based on reliable data.

Many bookkeepers handle basic invoice follow-ups. This usually includes sending reminders, updating payment status, tracking overdue invoices, and keeping receivables current. They do not handle aggressive collections, but they make sure the numbers clearly show who owes what at any point in time.

For most businesses, books are updated daily or every other day. Ecommerce and multi-account setups usually need daily updates because of frequent payouts and adjustments. Businesses with lighter activity can make do with two updates a week. Ideally, more frequent updates make month-end close faster and reduce last-minute fixes.

You must pay close attention to how they explain reconciliations. If a bookkeeper cannot clearly walk you through how they reconcile accounts, that is a red flag. Many bookkeeping errors come from weak reconciliation habits. Clear explanations and confidence in the process usually reflect actual work done and real experience.

Yes. This is what bookkeeping cleanup involves. Past entries are reviewed, incorrect categories are fixed, opening balances are adjusted, reconciliations are corrected, and records are matched back to statements. Cleanup takes time, but once access and documents are available, the process is straightforward.

No. You should never share your bank login details. Bank feeds can be connected through accounting software, or statements can be shared securely. Bookkeepers only need access to transaction data, not control over the bank account itself.

Bookkeepers can prepare reports based on existing accounting data, such as balance sheets, profit and loss statements, and basic cash flow summaries. Forecasting, projections, and investor-specific analysis are usually handled by an accountant. The bookkeeper simply has to ensure that the underlying data is clean and consistent.

Offshore bookkeepers typically cost less than local hires in the US and Europe. They are also quite experienced and have hands-on knowledge of a wide range of tools and industries, which helps with complex setups. Businesses benefit from regular updates and clean month-end close without spending internal time managing routine bookkeeping tasks.

Bookkeepers prepare the books for year-end but do not file returns unless they are licensed to do so. Their role is to ensure records are accurate, reconciled, and ready for the accountant or CPA. This preparation makes year-end filings smoother and faster.

Most bookkeepers need bank and credit card statements, sales reports, vendor bills, receipts, payroll summaries, and records of major expenses. If you use platforms like Stripe, PayPal, or Shopify, payout reports are also needed. Once the process is set, sharing these documents becomes a monthly routine task.

They usually flag the transaction and ask for clarification. If a receipt is unavailable, the entry is recorded based on the statement and marked for follow-up. This keeps the books moving without delaying the month-end close.

Yes. Bookkeepers prepare the records that auditors rely on. They ensure transactions are accurate, reports are complete, and supporting documents are available. While auditors handle compliance questions separately, good bookkeeping reduces audit time and back-and-forth.

For most businesses, a monthly review is enough. This usually includes checking the profit and loss statement, reviewing unusual entries, and confirming balances. High-volume businesses, such as ecommerce, may benefit from weekly reviews.

Yes. Most accounting tools support multi-currency entries. Bookkeepers record foreign transactions, match conversions, reconcile payouts, and normalize everything to the base currency. As long as the system is set up correctly, multi-currency bookkeeping is routine.

Cash-basis records income and expenses only when money moves in or out of the bank. Accrual-basis records them when the activity happens, even if payment comes later. Many small businesses start with cash-basis because it is simpler. As businesses grow, accrual-basis provides a clearer view. Bookkeepers can work with either, but the choice is usually made by the accountant.

Yes. Most clients give limited access that allows data entry, reconciliations, and report generation. Permissions related to settings, integrations, or sensitive changes usually remain with the owner or accountant.

Most bookkeepers need one to two weeks to get familiar. This time is spent understanding accounts, vendors, payment methods, regular expenses, and bank structure. Once that is done, the workflow becomes predictable. High-volume businesses may take slightly longer.

Yes. Credit card reconciliation is a standard task. Each transaction is matched to receipts, categorized correctly, and checked against the statement balance. It follows the same logic as bank reconciliation but involves more individual entries.

Bookkeepers usually help with the transition. This includes exporting reports, mapping accounts, setting up opening balances, and recreating records in the new system. Simple setups can switch quickly. Complex businesses take longer, but clean books make the process manageable.

A bookkeeper can explain month-to-month changes, expense movements, and whether trends look consistent. Deeper analysis and planning are handled by an accountant or CFO. The bookkeeper’s role is to ensure the numbers are accurate so that explanations are meaningful.

Yes. Bookkeepers record loan disbursements, track EMI payments, update interest entries, and reconcile balances with bank statements. They do not advise on loans but keep records accurate.

Yes. Many businesses operate with more than one account. Bookkeepers reconcile each account separately, record transfers correctly, and watch for missing or duplicate entries. Multiple accounts require more attention, not a different process.

A bookkeeper will record digital payments from statements and log cash transactions based on receipts or records you provide. Consistency matters most. When cash activity is shared regularly, month-end close remains smooth for your business.

A bookkeeper can manage the financial side of vendor activity. This includes recording bills, tracking payables, updating payment status, and monitoring due dates. They do not handle procurement or negotiations but keep vendor balances accurate and current.