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"?
Monthly reconciliation of all bank and credit accounts - Proper categorization of all transactions (income, COGS, expenses)
- Timely closing of each month’s books
- Documented chart of accounts
- Clear audit trails and system access logs
Compliance Requirements by Season
Year-Round:
- Reconcile accounts monthly
- Save digital records of all receipts and invoices
- Maintain proper categorization for all transactions
Quarterly:
- Run and review P&L, balance sheet, and cash flow statements
- Prep and file quarterly estimated tax payments (if required)
- Update payroll and contractor records
Year-End:
- 1099 prep and filing (for vendors over $600)
- Tax return prep coordination with CPA
- Lock prior-year books (in QuickBooks or Xero)
Red Flags That Trigger CPA Concerns
- Missing months of reconciliations
- Unlabeled or vague chart of accounts
- Personal expenses mixed into business books
- No backup for major transactions
- Prior-year books still open and editable
Tools to Keep You Compliant
- QuickBooks Online or Xero for audit trail
- Cloud file storage for receipts (e.g., Google Drive, Hubdoc)
- Regular backups of accounting files
- Monthly 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
- Need monthly cleanup? Try our QuickBooks Cleanup Checklist
- Missed months? See Catch-Up Bookkeeping Services
- Want a routine? Use our Monthly Bookkeeping Starter Guide
- Full-service CPA bookkeeping? Explore Bookkeeping Services
Make your books CPA-approved before tax season hits.
Call us at 1-800-583-0148 or