What Should a Bookkeeper Review in Service-Based Small Business Books?
If you own a service-based small business—whether you’re running an HVAC company, design studio, coaching practice, or wellness clinic—your bookkeeping is more than just categorizing expenses. Accurate books tell the story of your business health, help you avoid tax surprises, and give you confidence when making big decisions.
But here’s the truth: not every bookkeeper goes deep enough. If your bookkeeper isn’t reviewing the whole financial picture, you could be missing key insights.
What a Bookkeeper Should Review for Service Businesses
Balance Sheet Health
A proper review goes beyond Profit & Loss. Service businesses often rely heavily on assets like equipment, deposits, or prepaid expenses. Your balance sheet shows your true financial stability.Chart of Accounts
Many service-based businesses have overcomplicated charts of accounts—or categories that don’t match industry standards. A bookkeeper should simplify and structure it so reporting is useful and accurate.Products and Services Setup
Whether you bill by project, job, session, or retainer, your services in QuickBooks Online should be clear and tied correctly to income accounts. This helps track profitability by service line.Accounts Receivable & Payable
Cash flow is the #1 pain point in service industries. Bookkeepers should check if invoices are collected on time, if bills are recorded correctly, and if your reports match reality.Reconciliation History
Every bank and credit card account must be reconciled regularly. Skipping reconciliations creates inaccurate cash balances—which can lead to dangerous decisions.QuickBooks Online Settings
From sales tax to invoice templates, even small QBO settings can cause big headaches if they’re wrong. A review ensures your system supports how you actually do business.
Why This Matters for Service-Based Entrepreneurs
If your bookkeeper only “codes transactions” without reviewing the full financial picture, you may be getting reports that look clean but don’t reflect reality. A professional will always ask to see the full scope before taking over your books.
FAQ: Bookkeeping Reviews for Service Businesses
Q: Why do service-based businesses struggle most with cash flow?
A: Because income often comes in lumps (projects, retainers, or memberships) while expenses like payroll and rent stay steady.
Q: How do I know if my books need a review?
A: If your reports don’t match your bank account, or if you’re guessing what you can afford, it’s time for a professional review.
Q: Can QuickBooks Online help?
A: Yes—when set up correctly, QBO can track income by service, forecast cash flow, and make tax time easier.
👉 Book your free consultation with Dr. Bryan Raya, QuickBooks ProAdvisor, and let’s start Doing Business Right.
Schedule here
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