CPA Bookkeeping Compliance Overview

Understand what it takes to keep your books compliant, audit-ready, and aligned with CPA standards—ideal for small businesses and growing teams.

For small business owners and growing firms, accurate bookkeeping is just the beginning. True compliance requires CPA-ready reports, audit-friendly records, and clean handoffs to your tax preparer.

This CPA Bookkeeping Compliance Guide shows what you need to stay compliant, pass audits, and avoid tax-season chaos.

Download the full guide as a PDF or follow the steps below.

What Makes Books "CPA-Ready"?

  • tick Monthly reconciliation of all bank and credit accounts
  • tick Proper categorization of all transactions (income, COGS, expenses)
  • tick Timely closing of each month’s books
  • tickDocumented chart of accounts
  • tick Clear audit trails and system access logs

Compliance Requirements by Season

Year-Round:

  • tick Reconcile accounts monthly
  • tick Save digital records of all receipts and invoices
  • tick Maintain proper categorization for all transactions

Quarterly:

  • tick Run and review P&L, balance sheet, and cash flow statements
  • tick Prep and file quarterly estimated tax payments (if required)
  • tick Update payroll and contractor records

Year-End:

  • tick 1099 prep and filing (for vendors over $600)
  • tick Tax return prep coordination with CPA
  • tick Lock prior-year books (in QuickBooks or Xero)

Red Flags That Trigger CPA Concerns

  • tick Missing months of reconciliations
  • tick Unlabeled or vague chart of accounts
  • tick Personal expenses mixed into business books
  • tickNo backup for major transactions
  • tick Prior-year books still open and editable

Tools to Keep You Compliant

  • tick QuickBooks Online or Xero for audit trail
  • tick Cloud file storage for receipts (e.g., Google Drive, Hubdoc)
  • tickRegular backups of accounting files
  • tickMonthly review checklist (see Monthly Bookkeeping Starter Guide)

Test Case: Sandra, CPA in Texas

Problem: Sandra had a new client whose books were “done,” but nothing was reconciled, and 1099 data was missing.

Solution: We cleaned up 9 months of entries, added missing contractor data, and delivered audit-ready reports.

Outcome: Sandra filed taxes on time, with full documentation-and now recommends us to her clients.

Make compliance easy

Make your books CPA-approved before tax season hits.

Call us at 1-800-583-0148 or

Request a CPA Bookkeeping Review

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