The number of months is only the beginning
Two businesses with twelve months of records can require very different amounts of work. One may have a dedicated account, consistent categories and monthly reconciliations. Another may have multiple accounts, missing statements, personal activity, loans, payroll and years of unresolved balances.
What drives the scope
- Number of bank, credit-card and payment accounts
- Transaction volume and number of reporting periods
- Missing statements, receipts or income records
- Personal and business activity in the same accounts
- Unreconciled or incorrect beginning balances
- Loans, assets, payroll and owner transactions
- Historical periods that must be reconstructed
- Required financial statements and supporting schedules
Cleanup is more than data entry
Transactions must be classified using available evidence, accounts reconciled to outside statements, transfers matched, duplicates identified and balances carried forward correctly. Assets, liabilities, loans, equity and payroll activity may require separate schedules. The work must leave a traceable path from source records to the resulting reports.
The intended use affects the deliverable
Books prepared only for tax-return support may differ from a package needed for financing, management review, ownership changes or formal accounting-system cleanup. The purpose determines the level of detail, reporting periods and supporting documentation required.
How clients can control cost
Provide complete statements, explain unusual transactions, separate personal activity, identify transfers and loans, organize payroll records and respond promptly to questions. Better source information reduces avoidable research and rework.