The Core Monthly Tasks — What We Do at Sharma Jyoti and Co Every Month
| Task | What It Involves | Why It Matters |
|---|---|---|
| Bank reconciliation | Match every bank and credit card transaction to your QuickBooks records. Clear unmatched items, investigate discrepancies. | Detects fraud, errors, and duplicate entries. Required for accurate financial reports. |
| Expense coding | Categorize every transaction to the correct expense account (office supplies, travel, meals, COGS, etc.) per IRS guidelines. | Correct coding = correct deductions. Wrong coding = overpaid tax or IRS audit risk. |
| Accounts payable | Enter supplier invoices, track payment due dates, process payment runs, reconcile vendor statements. | Ensures you pay on time, avoid late fees, and always know what you owe. |
| Accounts receivable | Record customer invoices, track outstanding payments, send payment reminders, reconcile payments received. | Prevents revenue leakage — unpaid invoices that fall through the cracks. |
| Monthly P&L report | Profit and loss statement showing revenue, cost of goods, gross profit, operating expenses, and net profit for the month. | Tells you whether you made money this month — the single most important report. |
| Monthly balance sheet | Assets, liabilities, and equity at the end of the month. | Shows your business's financial position — required by banks and investors. |
| 1099 contractor tracking | Track all payments to US contractors throughout the year. Flag anyone paid over $600. Prepare 1099-NEC at January 31. | Missing 1099s = IRS penalties of $60–$310 per form. |
| Payroll data entry | Record payroll runs in QuickBooks — gross pay, federal and state withholding, FICA, 401k deductions, net pay. | Accurate payroll records needed for quarterly 941, W-2s, and year-end CPA workpapers. |
| Sales tax tracking | Track sales tax collected by state, reconcile to sales tax liability account, prepare data for quarterly state filings. | Sales tax errors are a leading cause of state audits for small businesses. |
Quarterly Tasks
- Form 941 data preparation — quarterly payroll tax summary showing FICA employer and employee shares, federal income tax withheld, and any adjustments. We prepare the data; your CPA or EA files.
- Quarterly management report — P&L vs. prior quarter, cash flow summary, key metrics commentary. Helps you plan ahead rather than discover problems at year-end.
- Estimated tax calculation support — we provide your CPA with the quarterly income data they need to calculate quarterly estimated tax payments.
- Sales tax return data — state-by-state sales tax data for your CPA or state filing agent.
Year-End Tasks — The Workpaper Package for Your CPA
At year-end, we prepare a complete workpaper package so your CPA can file efficiently. This is where the value of organized monthly bookkeeping compounds — your CPA receives clean data instead of a pile of unreconciled transactions:
- Year-end trial balance — all accounts with full-year totals, reconciled to the penny
- Bank reconciliation as of December 31 — confirmed clean
- Payroll summary — all employees, full-year gross, withholding, FICA, net pay, aligned with W-2s
- 1099-NEC preparation — all contractors paid over $600, filed via IRS e-file by January 31
- Fixed assets and depreciation schedule — additions, disposals, and year-end net book values
- Prepaid expenses and accruals summary — any year-end adjustments
- Shareholder/member loans and distributions (for S-corps and LLCs)
- Officer compensation record (for S-corps — IRS requires reasonable salary documentation)
When your CPA receives this package from us, they typically spend 3–5 hours on your return instead of 10–20. That saves $1,000–$3,000 on your annual CPA bill — more than our full year of monthly fees for most clients.
What a Bookkeeper Does Not Do
Be clear on the boundary so you know what to expect:
- Sign or file tax returns — only a CPA or Enrolled Agent can sign Form 1040, 1120-S, 1065, or 1120. We prepare everything; your CPA files.
- Give formal tax advice — we flag potential issues and observations, but formal tax advice (in writing, under privilege) requires a CPA or EA.
- Represent you in an IRS audit — CPA or EA only.
- Make business decisions — we tell you the numbers; you make the calls.
What Good Bookkeeping Looks Like — Deliverables Timeline
| When | Deliverable from Sharma Jyoti and Co |
|---|---|
| Within 5 business days of month-end | Bank reconciliation complete, P&L and balance sheet delivered via email |
| By the 15th of each month | Previous month's management report with commentary |
| January 31 | 1099-NEC filed for all contractors paid $600+ in prior year |
| Quarterly (Jan 31, Apr 30, Jul 31, Oct 31) | Form 941 data package delivered to your CPA |
| Within 30 days of year-end | Full year-end workpaper package delivered to your CPA |
How Much Does a Small Business Bookkeeper Cost?
| Provider Type | Monthly Cost | What You Get |
|---|---|---|
| US freelance bookkeeper | $400–$1,500/mo | Reconciliation, reports — quality varies |
| Online service (Bench, Pilot) | $300–$900/mo | Basic bookkeeping, limited to their platform |
| Part-time in-house (20 hrs/week) | $2,200–$3,500/mo all-in | On-site, but high fixed cost |
| Sharma Jyoti and Co | $200–$600/mo | Full service — reconciliation, P&L, payroll data, 1099s, quarterly reports, year-end workpapers. CA-supervised. |
About Sharma Jyoti and Co
We are an ICAI-registered Chartered Accountant firm. Our ICAI CAs complete a five-year qualification covering audit, taxation, and financial reporting — comparable to a US CPA in technical depth, without the US license to sign returns. We handle everything on this page for US small businesses at $200–$600/month. Get a free quote →
We are an ICAI-registered Chartered Accountant firm. Our ICAI CAs complete a five-year qualification covering audit, taxation, and financial reporting — comparable to a US CPA in technical depth, without the US license to sign returns. We handle everything on this page for US small businesses at $200–$600/month. Get a free quote →
Related Reading
Bookkeeper vs accountant vs CPA — what's the difference?Who does what for a US small business
Do I need a bookkeeper for my LLC?When an LLC actually needs one
How much does outsourced bookkeeping cost for a US small business?Full cost breakdown — India vs US rates
When should a small business hire a bookkeeper?The 6 trigger points that mean it's time
Frequently Asked Questions
Every month: reconciles all bank and credit card accounts, categorizes income and expenses, processes accounts payable and receivable, records payroll entries, prepares P&L and balance sheet. For 50–200 monthly transactions, this takes 8–15 hours of skilled work — which is why most businesses outsource it rather than doing it themselves.
A bookkeeper records and organizes transactions. An accountant analyzes records and prepares financial statements. A CPA is state-licensed and can sign tax returns and represent you before the IRS. For a small business, the monthly work is bookkeeping — your CPA is needed at year-end. Paying CPA rates for monthly bookkeeping is the most common expensive mistake small businesses make.
A bookkeeper handles payroll data preparation — FICA calculations, QuickBooks payroll entries, W-2 and 1099 tracking, and Form 941 data for your CPA. Many businesses use Gusto or QuickBooks Payroll and have their bookkeeper manage it. At Sharma Jyoti and Co we manage payroll data in your existing software. Your CPA or EA files the 941 — that requires a licensed signature.
US freelance bookkeeper: $400–$1,500/month. Online services (Bench, Pilot): $300–$900/month. Sharma Jyoti and Co (Indian CA firm): $200–$600/month — CA-supervised, QuickBooks reconciliation, P&L, balance sheet, payroll data, 1099 tracking, and year-end workpapers included. Cost depends mainly on monthly transaction volume.
QuickBooks Online is the most widely used — it is our primary platform at Sharma Jyoti and Co. We also work with Xero and FreshBooks. For payroll: Gusto, QuickBooks Payroll, or ADP. For document capture: Dext or Hubdoc — you photograph receipts, they land in our queue for coding. No need to send physical paperwork.