What is full service bookkeeping?

Full-service bookkeeping is a comprehensive, hands-off solution for businesses where a dedicated bookkeeper or firm handles virtually every day-to-day financial record-keeping task. Bookkeeping Services in Baltimore. It provides a complete, accurate, and up-to-date picture of a business’s finances without the business owner having to spend time on manual data entry or reconciliation.

It’s the highest level of bookkeeping service, essentially outsourcing the entire financial record-keeping process.

What Full-Service Bookkeeping Typically Includes

A full-service package covers the entire accounting cycle (the stages of bookkeeping) from the initial transaction to the generation of monthly reports.

  1. Daily Transaction Management

Transaction Recording & Categorization: Automatically or manually capturing every expense, sale, and bank deposit and assigning it to the correct account (following the Chart of Accounts).

Source Document Management: Organizing and storing digital copies of receipts, invoices, and bills.

  1. Month-End Reconciliation & Close

Bank & Credit Card Reconciliation: Comparing the business’s internal ledger to all bank and credit card statements to ensure they match perfectly, catching any errors or missing transactions.

Adjusting Entries: Making necessary non-cash entries (like depreciation and amortization) to ensure the books follow the Accrual Method and are finalized for the period.

  1. Accounts Management

Accounts Receivable (A/R): Tracking customer invoices, recording incoming payments, and monitoring what customers owe the business.

Accounts Payable (A/P) & Bill Pay: Tracking vendor bills, ensuring they are paid on time, and managing vendor relationships.

  1. Financial Reporting

Monthly Financial Statements: Preparing and presenting the three core reports vital for business management:

Profit & Loss (P&L) Statement: Shows revenue and expenses over a period.

Balance Sheet: Shows assets, liabilities, and equity at a specific point in time.

Statement of Cash Flows: Tracks actual cash movement.

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