How Can You Review Outsourced Bookkeeping?
Outsourcing your bookkeeping doesn’t mean giving up control – it means gaining efficiency while staying informed. To ensure your financials remain accurate and actionable, it’s essential to know how to review your outsourced bookkeeping properly.
In this guide, we’ll explain how to audit and assess the quality of your bookkeeping service, what to review regularly, and how to maintain transparency even when your books are handled by a third party.
Why Reviewing Your Outsourced Bookkeeping Matters
Even if a qualified team manages your books, reviewing their work is vital for:
- Spotting errors or misclassifications
- Ensuring reports match your business activity
- Monitoring cash flow and profitability
- Staying prepared for tax season or audits
- Verifying you’re getting the value you’re paying for
Bookkeeping is the foundation of your business’s financial health – and regular oversight protects your bottom line.
What to Review (and How Often)
Here’s a simple review checklist to ensure your outsourced bookkeeper is delivering quality work:
1. Monthly Financial Reports
Request these reports each month:
- Profit & Loss (P&L) Statement
- Balance Sheet
- Cash Flow Statement
- Accounts Receivable Aging Report (if applicable)
- Accounts Payable Aging Report (if applicable)
Review for:
- Unexpected spikes or drops in income/expenses
- Negative cash flow
- Inconsistent category usage
- Missing income or vendor payments
2. Bank and Credit Card Reconciliations
Ensure your accounts are reconciled every month. This confirms your books match actual bank and credit card activity.
Look for:
- Unmatched or uncleared transactions
- Duplicate entries
- Old unreconciled items still sitting in the books
3. Transaction Categorization
Spot-check transactions – especially large ones – to ensure they’re correctly categorized. For example:
- Office supplies vs. capital equipment
- Meals vs. travel
- Owner draws vs. salary or payroll
Misclassified transactions can skew your reports and impact tax deductions.
4. Payroll Entries and Liabilities
If your bookkeeper tracks payroll, confirm wages, withholdings, and tax payments are posted accurately.
Review:
- Payroll journal entries
- Payroll tax liabilities
- Correct classification of 1099 contractors vs. W-2 employees
5. Communication and Support
A good bookkeeping service should offer:
- Responsive email or phone support
- On-time monthly reports
- Proactive updates or questions if something looks off
- A clear point of contact for questions
If you’re left chasing your provider, it may be time to reevaluate.
Test Case: E-Commerce Brand Gains Confidence with Monthly Bookkeeping Reviews
Business: Online clothing store with high transaction volume across Shopify and PayPal
Problem: Owner didn’t know if the outsourced bookkeeper was tracking sales taxes or reconciling bank feeds properly
Solution: RemoteBooksOnline set up a review schedule with monthly reconciliations, clear sales tax breakdowns, and categorized reports by channel
Results:
- Owner received consistent monthly summaries
- Errors were caught early before tax season
- Real-time visibility into performance across platforms
Frequently Asked Questions
How often should I review my books?
At a minimum, monthly. Review reports after reconciliation and before tax deadlines. Quarterly deep dives are also useful for budgeting and planning.
Can I audit my outsourced bookkeeper?
Yes – and you should. Ask questions, request documentation, and even spot-check transactions regularly.
What if I don’t understand the reports?
Your provider should walk you through them. At RemoteBooksOnline, we offer CPA-ready reports with explanations and support included.
What are red flags to look for?
Late reports, inconsistent categorization, no reconciliation, poor communication, or sudden unexplained changes in financials.
What access should I have to my data?
Full access. You should always be able to log in to your QuickBooks or Xero account and view your data at any time.
Stay Informed, Even If You Outsource
Bookkeeping isn’t “set and forget.” With RemoteBooksOnline, we keep your books clean and transparent – and help you understand what you’re reviewing. Our secure, flat-rate bookkeeping services come with clear reports, regular communication, and total visibility.
Explore our monthly bookkeeping solutions or get started with a free trial.
