What CPAs Look for During Monthly Bookkeeping Reviews
When your bookkeeping is CPA-supervised, every number gets a second, professional look. But what exactly do CPAs review each month-and why does it matter?
Their review goes beyond scanning reports; it’s a detailed quality-control process that validates accuracy, compliance, and consistency.
Here’s what CPAs look for during monthly bookkeeping reviews and how this oversight keeps your business financially sound and audit-ready all year.
Learn more about our CPA Bookkeeping Services.
Account Reconciliations
The first thing a CPA checks is whether all accounts reconcile with their respective statements.
- Bank and credit-card balances must match statements exactly.
- Unexplained differences are investigated before closing.
- Loan and merchant accounts are validated for proper interest or fee postings.
Reconciliations confirm that your data ties to real-world activity.
Expense Categorization and Coding
Proper expense categorization is crucial for tax deductions and reporting accuracy.
CPAs ensure that:
- Expenses follow IRS-compliant categories.
- Personal or non-deductible items are excluded.
- Overlapping categories (like “supplies” vs “cost of goods sold”) are applied consistently.
Accurate coding now prevents problems during tax preparation later.
Understand the key distinctions between CPA bookkeeping and accounting services-essential for making informed financial decisions for your business.
Revenue Recognition and Timing
Income must align with the correct period and source.
During review, CPAs:
- Match deposits to invoices or sales receipts.
- Verify deferred or prepaid revenue entries.
- Ensure no double-posted or missing revenue exists.
This keeps your income reporting accurate and GAAP-compliant.
Adjusting Entries and Accruals
CPAs post and verify adjustments that bookkeepers may not handle:
- Depreciation schedules and fixed-asset entries
- Accrued payroll or unpaid vendor invoices
- Loan amortization or interest expense corrections
These ensure financial statements reflect true economic activity.
Variance and Trend Analysis
Each month’s data is compared to prior periods.
CPAs investigate large or unusual changes in:
- Gross margin
- Operating expenses
- Cash flow
They explain fluctuations so management can respond before issues escalate.
See how investing in expert CPA bookkeeping can deliver real returns-maximize accuracy, insights, and profit.
Compliance and Documentation Review
Documentation isn’t optional-it’s audit protection.
CPAs verify that receipts, contracts, and vendor bills are attached to transactions and stored securely. They also confirm retention compliance for multi-year audits.
How RemoteBooksOnline’s CPA Review Works
Every client’s file passes through CPA quality control.
- Automated reconciliations completed by bookkeepers
- CPA review for balance and category integrity
- Report generation and signoff within 10-15 business days
- CPA notes shared with your tax accountant as needed
It’s a professional-grade review built into your monthly plan.
FAQs
How often do CPAs review my books?
At least monthly, typically after all reconciliations and before report delivery.
What happens if they find an error?
The CPA corrects it immediately and documents the fix, ensuring clean audit trails.
Is a CPA review required for taxes?
Not legally, but it’s strongly recommended-especially if you want to minimize IRS risk.
Do all bookkeeping firms include CPA reviews?
No. RemoteBooksOnline includes CPA oversight in every plan at no extra cost.
CPA oversight complements our broader Accounting Services for complete compliance and reporting.
Keep your CPA-reviewed books consistent with Monthly Bookkeeping services.
Want the accuracy and credibility of CPA-reviewed books without the overhead? Get a free quote for CPA Bookkeeping Services from RemoteBooksOnline today.
