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Podcast

What Should a Bookkeeper Be Doing for Your Online Business?

Episode Summary

In this episode of The Profit Pillars Show, Parker Stevenson lays out exactly what a professional bookkeeper should be doing for your online business each month and why it’s about much more than “just” tracking expenses.

He starts with the basics: downloading all transactions from your bank accounts, credit cards, merchant accounts, and other financial platforms. While software like QuickBooks can automate much of this, Parker warns that not every account connects cleanly and some, like PayPal, require a more manual process to ensure accuracy.

From there, every transaction must be categorized properly. Parker explains why this isn’t a task to blindly trust to AI or automation, there’s too much nuance. The right categories help you understand where your money is going, maximize deductions, and create clear reports you can actually use.

Once transactions are categorized, they must be reconciled, meaning the balances in your bookkeeping software match your actual financial statements to the penny. Skipping this step, or covering discrepancies with “adjusting entries,” can create tax problems and erode trust in your numbers.

Parker also shares critical adjustments that many bookkeepers overlook:

  • Monthly payroll entries that reflect taxes and benefits accurately
  • Breaking out merchant fees and refunds so you know your true sales and expenses
  • Separating revenue by offer so you can see exactly what’s driving your income

He emphasizes that the final step should be delivering reports in a way that’s easy for you to review and understand, not just dumping data into QuickBooks and leaving you to sort it out.

Parker also touches on why bookkeepers shouldn’t be bogged down with administrative tasks like paying bills or sending invoices, why daily or weekly bookkeeping is rarely worth the cost, and how to recognize when your current bookkeeping setup isn’t meeting your needs.

The result? A clear roadmap for holding your bookkeeper accountable or, if you’re doing your own books, understanding the process to follow each month.

Frequently Asked Questions

Here are a few common questions business owners ask around this topic:

What should my bookkeeper be doing every month for my online business?

Every month, your bookkeeper should download all transactions, categorize them accurately, reconcile each account to the penny, and make key adjustments like payroll, merchant fees, and refunds. From there, they should deliver clear, easy-to-read financial reports. This monthly process ensures your tax reporting is accurate, your profitability is clear, and you have data-driven insights to grow your online business.

Why is monthly reconciliation so important for online business bookkeeping?

Monthly reconciliation keeps your books accurate by matching your records with your bank and credit card statements. Without it, you risk missing income, losing deductions, or duplicating transactions. For online businesses using multiple payment processors like Stripe, PayPal, or Square, reconciliation is essential to avoid costly errors, inflated tax bills, and even IRS audit issues.

Should my bookkeeper handle paying bills, invoicing, or payroll?

No, your bookkeeper’s primary role is maintaining accurate records, compliance, and reporting, not handling administrative tasks. While some services offer bill pay, invoicing, or payroll, these are better managed by in-house staff or a virtual assistant. Keeping your bookkeeper focused on accurate monthly financials and tax compliance ensures your online business gets the most value from their expertise.

Do I need weekly or daily bookkeeping for my online business?

For most online businesses, monthly bookkeeping is more than enough to maintain accurate and up-to-date records. If you think you need weekly or daily updates, it’s often a sign you need better financial forecasting, budgeting, or cash flow management, not more frequent reconciliations. Daily and weekly bookkeeping also costs significantly more and still isn’t fully accurate until the reconciliation process is completed at month’s end.

How can I tell if it’s time to find a new bookkeeper for my online business?

Warning signs include inconsistent or missing reconciliations, never asking questions about unclear transactions, providing confusing or incomplete reports, or skipping important adjustments like payroll, merchant fees, and refunds. If your bookkeeper isn’t experienced with online business models or payment processors, you may be missing valuable insights and risking compliance issues. In that case, it’s worth looking for a bookkeeping service that specializes in online entrepreneurs and modern small business accounting.

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The Profit Pillars Show

The Profit Pillars Show by Evolved Finance gives online entrepreneurs and modern small business owners the real-world guidance and insights they wish they had sooner. Each episode delivers actionable, straight-to-the-point advice on finances, operations, and overall business strategy, drawn from host Parker Stevenson’s years of experience helping entrepreneurs build stronger, more profitable businesses.