The Ultimate List of Accounting Services for Small Businesses 

Have you watched Tom and Jerry’s “The Missing Mouse”?  

In this episode, Jerry is mistaken for an explosive white mouse, and Tom panics the whole time, trying not to blow everything up. However, he accidentally triggers a massive blast anyway.   

Although we love Tom and Jerry, this is not the IMDB post. The main reason for telling you about this episode was that running a small business without proper accounting services can feel similar. You might think you’re managing fine, but your business could face serious consequences if you make one wrong move.  

That’s why we’ve compiled the ultimate list of accounting services for small businesses. So, make sure to read till the end!   

List of Accounting Services for Small Businesses  

Running a small business means wearing a lot of hats. You are the CEO for one minute, and you are a bookkeeper for the other.   

Knowing what accounting services are available (and when to get help) can relieve a huge burden.   

Here’s a detailed list of accounting services for small businesses.   

1. Bookkeeping Services  

Bookkeeping is the foundation of your business’s finances. It’s about keeping track of every dollar that comes in and goes out. Running a business can be a lot harder without clean, up-to-date books.   

Good bookkeeping services don’t just record transactions; they help you keep an eye on your spending, stay on top of your income, and get your financial reports ready when you need them.  

When talking about bookkeeping services, financial statement preparation is another key piece of the puzzle.   

This is where accountants combine key information to show you the big picture, such as how much you own, how much you owe, what you’re earning, and where your cash is going. These reports usually include the balance sheet, income statement, and cash flow statement.  

They help you make smarter decisions, attract investors, and comply with legal or tax rules.   

Accurate bookkeeping feeds directly into solid financial reporting. When your books are handled properly, you get clear insights that help you identify opportunities, avoid problems, and scale your business.   

2. Accounts Payable  

Accounts payable, or A/P for short, is the money your business owes to suppliers and vendors. Suppose you ordered a batch of inventory today but agreed to pay the supplier 30 days later. That outstanding balance is accounts payable.   

Staying on top of A/P is a big deal because missing payments can hurt your relationships and even incur late fees. Many businesses lean on accounting services to manage their payables, making sure bills are tracked, paid on time, and even negotiated when possible.  

3. Accounts Receivable  

Accounts receivable, or A/R, is the other end of A/P. It’s the money that your customers owe you. Any time you send an invoice and wait to get paid, that amount sits on your books as accounts receivable. The good thing is it is counted as an asset.  

Most businesses keep an A/R ledger, a fancy term for a detailed record of who owes what and when it’s due.   

Typically, businesses send out monthly invoices listing what was sold and how much the customer needs to pay. Once the money comes in, the ledger is updated, and that account is officially closed.  

Without a proper system, it would be easy to lose track of who paid and who didn’t. An accountant tracks all invoices, sends reminders when needed, and records payments properly so the business keeps a healthy cash flow.   

4. Payroll Processing  

Payroll processing ensures your employees get paid the right amount at the right time and that taxes and benefits are deducted. It sounds simple, but a lot is going on behind the scenes.  

Most payroll pros use special software like QuickBooks to calculate wages, calculate tax withholdings, and generate pay stubs. This detailed process leaves little room for error.    

Since payroll can get complicated (and eats up a lot of time), many businesses hand it off to payroll service providers.   

When payroll is done right, it keeps your team happy, keeps you compliant with the law, and ensures that all those important wage and tax records stay organized and accurate.  

5. Bank Reconciliation  

Bank reconciliation is a fancy way of saying you’re double-checking your business books against your bank statements.   

You might think, “Oh, Tangent, it’s super simple, ” but it can get tricky and time-consuming once you factor in outstanding checks, bank fees, or deposits that haven’t cleared yet. Still, it’s one of those things you can’t skip if you want to keep your financial records accurate.  

6. Tax Accounting  

Tax accounting is about making sure your business pays what it owes, no more, no less. A tax accountant’s job is to help you stay on the right side of tax laws while finding ways to lower your tax bill wherever possible.   

There’s a misconception that tax accounting is about filing once a year; however, it’s a big part of keeping your business financially healthy all year round. When done right, it keeps you compliant, helps you spot tax-saving opportunities, and saves you from surprises during tax season.   

7. CPA Services  

CPAs (Certified Public Accountants) are the multi-taskers of the accounting world. They’re trusted to handle anything regarding your business finances.  

Most CPAs work for accounting firms, but plenty also run their businesses. They offer a wide range of services, from auditing your financials to giving tax advice to helping you plan for future growth.   

If you need someone to double-check your books, help you through an audit, or create a smart financial plan, a CPA can handle it.  

8. Auditing Services  

Auditing services give businesses an independent, honest look at their financial health. An audit checks whether a company’s financial statements are accurate and whether they follow the rules, specifically, generally accepted accounting principles (GAAP).  

Getting audited isn’t just about compliance, though. A good audit can uncover hidden problems, point out inefficiencies, and help businesses tighten their financial reporting before small issues become big ones.   

9. Fractional CFO Service  

A fractional CFO is like having a top-notch financial expert on your team without the full-time price tag. Businesses bring in fractional CFOs when they’re growing fast, facing big changes, or simply need strategic financial advice without committing to a full-time executive.  

Fractional CFOs focus on the big picture, such as improving cash flow, planning for growth, managing risk, and helping leadership make smart financial decisions. They’re not stuck in the day-to-day grind, but they’re crucial to steering the company toward a stronger future.   

10. Forensic Accounting  

Forensic accounting is where finance meets investigation. Forensic accountants dig deep into financial records to uncover fraud, embezzlement, or other shady activities.   

They are like financial detectives, using their accounting, auditing, and investigation skills to catch wrongdoing and prevent future problems.  

Let’s say a small business notices money mysteriously disappearing from their accounts. A forensic accountant would step in, analyze transactions, trace the missing funds, and help build a case to hold the responsible party accountable.  

Tips for Choosing the Right Accounting Service  

Picking the right accounting partner isn’t just important; it’s crucial for your business’s success. You want someone who knows what small businesses need, offers fair pricing, and has a strong track record you can trust.   

A great accounting partner will feel like part of your team, handling everything from bookkeeping to payroll so you can focus on growing your business.  

1. Expertise With Small Businesses  

Running a small business comes with its own set of challenges, like tight budgets, fluctuating cash flow, and wearing way too many hats. Not every accounting firm truly understands what that’s like.  

Don’t be shy about asking questions when you’re looking for the right fit. Have they worked with startups? Do they know the ins and outs of your industry? Are they familiar with the specific tax rules and financial bumps you might face?  

Choosing a firm that already knows your world can save you time and headaches. In addition, they’ll be able to offer advice that makes sense for your situation.

2. What About the Costs?   

Let’s be real: hiring an accounting firm is a big investment. So how much should you budget for it? Honestly, prices can be all over the place, making it even more important to know what you’re paying for and getting.  

Start by asking for a full breakdown. Are they charging by the hour, offering flat fees, or selling subscription plans? Get a clear list of what’s included. Also, find out if there are extra charges for consultations, audits, or emergency support — you don’t want surprise fees popping up later.  

It’s a smart move to get quotes from at least three firms. This way, you can see if what they’re asking matches what’s typical in the market.   

Some firms even offer bundled packages, including bookkeeping, tax filing, and financial planning, often at a better price.   

Remember, a good firm won’t neglect these questions. They’ll give you honest answers upfront.  

3. Accounting Support  

Your business today will not look the same a year from now, and your accounting needs should not be stuck in the past, either. You want a firm that can scale with you, handle more transactions, navigate complex taxes, or help you plan for major growth.  

Before you commit, ask them about their service levels. Do they offer flexible plans that can grow as you do? Can they handle bigger payrolls, new product lines, or even international tax issues down the road?  

It’s also worth asking how they support businesses through bigger moments like dealing with audits, prepping for investor funding, or managing multi-location operations. A firm ready for your future, not just your present, is the kind of partner you want.   

4. Keeping Clients in the Loop  

When it comes to your money, communication is everything. You shouldn’t have to chase your accountant for updates. A good firm will keep you in the loop, sending regular reports and letting you know what’s happening before you ask.  

Start by asking how often they send reports. Is it monthly or quarterly, or can they customize it for your needs? Don’t be shy about asking for a sample report, too. You want to make sure it’s clear, detailed, and easy to understand.   

Test how they share updates: Is it through email, a secure client portal, scheduled calls, or a mix of everything? It’s also a huge plus if they assign you a dedicated contact so you’re not bounced around when you need help.  

Finally, set clear expectations upfront, such as how fast they’ll respond to your emails or calls.   

5. Do They Use Advanced Accounting Tools?  

If your accountant still relies on spreadsheets from 1998, it’s time to look elsewhere. Modern accounting tools can save you time, reduce mistakes, and give you real-time insights into your business.  

Look for firms that use up-to-date, cloud-based software like QuickBooks, Xero, or similar platforms. If they have a client portal, ask for a quick demo. You’ll want to see how easy it is to use and what features it offers.  

Also, check if their systems can integrate with yours, such as syncing with your POS system, payroll platform, or invoicing software.   

Bonus points if they offer automated invoicing, real-time reporting, and built-in tax tracking. The right tools make life much easier for you and them. 

6. Check their Repute  

A firm’s reputation says a lot, but don’t just fall for slick marketing or a glossy website. The real story comes from people who’ve worked with them.  

Start by checking online reviews, but don’t stop there. Talk to other business owners in your industry or at a similar growth stage. Ask them who they trust (and who they’d avoid). You’ll get honest feedback you can’t find in a company brochure.  

You can also join industry-specific groups on LinkedIn or Facebook and ask for recommendations. Business owners are usually more than happy to share their experiences, the good and the bad. It’s a great way to get unfiltered insights and make a smarter choice.  

How to Get Started with Accounting Services?  

Once you’ve picked the right accounting partner for your small business, it’s time to set things up correctly so you can start with no confusion and no wasted time.  

1. Sign the Service Agreement  

Before you sign the service agreement, make sure it spells out everything you need. If you run a service-based business that charges by the project, double-check that the firm knows how to track and categorize your income properly.  

Are they already using software like QuickBooks? If so, let them know upfront and ensure they’ll continue using it to avoid any roadblocks.   

Also, get the full information on fees, whether they bill hourly or offer flat rates, and confirm how often you’ll get billed and the payment terms.  

2. Provide Initial Documents  

Your accounting team will need a clear snapshot of your financial situation to do their best work. Be ready to hand over key documents like your latest tax returns, profit and loss statements, and bank records from the past 6 to 12 months.  

If your business brings in money from different sources, like multiple services or locations, make sure you break it all down for them. This will help them track everything properly from the start.  

And if you’ve had past issues with things like cash flow, let them know. Sharing any old accounting reports or notes (especially ones that flagged problem areas) will also help them jump in faster and fix what needs fixing.  

3. Schedule an Onboarding Session  

The onboarding session is where you and your accounting firm fully agree on the numbers and your overall business goals.   

Be sure to walk them through how your business operates day to day. For instance, if you run a construction company, explain how you track costs and returns. These details can be complicated if they’re not handled correctly.   

If you want monthly or quarterly financial reports, make it clear upfront so they know exactly how often and how detailed you expect updates.  

Also, ask about tax planning. Make sure they’re familiar with small business tax breaks and strategies so you’re not leaving money on the table.  

4. Set Up Tech Stack  

If you’re already using tools like QuickBooks, Xero, or even good old spreadsheets, ensure your new accounting firm can plug right into your system. Give them access to your current platforms, and work with them to sync up things like invoices, payroll, and expenses.  

If they suggest switching to a new tool, ask for a walkthrough. You’ll want to know how it works and what it’ll change in your daily operations. For example, if you use Stripe to accept payments and QuickBooks for accounting, you’ll want those two talking to each other automatically, not leaving you stuck doing manual entries.  

5. Define Communication Channels  

Decide early on how you’ll stay in touch and how often. Figure out who on your team will be the main point of contact and set a schedule that matches your workflow.  

Weekly summaries might be a better fit if you’re a busy founder who doesn’t want to be bogged down with daily updates. On the flip side, if overdue invoices or cash flow dips are a big concern, you might want real-time alerts.  

Also, make sure the firm knows your preferred communication style, whether that’s email, phone, or messaging apps. If you’re using cloud-based accounting software, check that they can provide live updates so you always have a clear picture of your financial health without having to ask.   

6. Review the Initial Deliverables  

When you get your first set of financial reports or tax filings, take the time to go through them carefully. Make sure everything checks out. Your balance sheet should clearly show all your assets and liabilities, and your income figures should align with what you expected.  

If you notice gaps between what you projected and what you earned, flag them early. If your business is seasonal, now’s the perfect time to ask for cash flow projections to help you stay ahead during slower months.  

Final Thoughts  

So, there you have it. We hope your brain is not blowing like Tom’s. As you choose from the list of accounting services for small businesses we explored, think about what best fits your needs. Take your time, research, and partner with the right firm.   

Speaking of the right accounting firm, the good news is that you don’t need to open another tab to find it.   

Tangent Consulting helps small business owners like you outsource the entire accounting department. For over a decade, we’ve been helping hardworking pros, contractors, handypeople, and small business owners ditch the overwhelm and take control of their finances.          

Let’s get your accounting system working for you!         

P.S. If you are reading this, it means you can have access to our free consultation for your business. Avail this for free today before we change our mind 😉   

FAQs  

What type of accounting do small businesses use?  

Small businesses use either cash-basis accounting or accrual-basis accounting, depending on their size, complexity, and reporting needs.  

What are the accounting methods for small businesses?  

The two main accounting methods are cash basis (recording income and expenses when money changes hands) and accrual basis (recording income and expenses when they are earned or incurred).  

What is the best accounting software for a small business?  

QuickBooks Online is often considered the best accounting software for small businesses due to its ease of use, features, and integrations.