Bookkeeping Tax Services – Everything You Need To Know

bookkeeping and tax services

After reading this article, you should be able to sift through the many different bookkeeping and tax services which exist and find one that closely matches your business’ needs. On this page, we will break down everything you need to know about high-quality bookkeeping and tax services.

When it comes to things like bookkeeping and tax services, businesses value the time that they can save by hiring somebody else to handle necessary financial tasks rather than trying to handle things on their own.

This way, you can decide if this is the right type of service to assist your business, and what you should expect if you end up searching for the best bookkeeping and tax services for your business.

What is Bookkeeping?

bookkeeping and tax servicesA bookkeeper is somebody that you can depend on for handling your day-to-day expenses. They will help you keep your finances organized. By careful examination and monitoring of your accounts and expenses, bookkeeping services are really useful for those who tend to have a difficult time handling financial matters on their own. As a business owner, you already have to spend lots of time managing your own tasks every day. When you start to rack up both income and expenses with your business, though, keeping track of your finances can start to be too time-consuming. This is where bookkeeping services really come in handy.

Top Related: Bookkeeping Services

Not Quite Tax Preparation Professionals, But Similar

To be clear, you shouldn’t view professionals like a bookkeeper, accountant, and tax preparer in the same manner. Since business finances can quickly get complicated, especially when taxes come into play, there are many different specialists in this industry which excel in targeted niches of business finances. If you look through the bookkeeping and tax services which exist, you will see that there are also normally a group of professionals who specialize in a combination of many different niches of business finance.

Handle Daily Expenses and Current Finances

The simplest way to understand the job of a bookkeeper is that they are the person who handles current financial tasks. They are not the person you would keep around for advice on broader business financial strategies. Although, this is clearly a very valuable position for your business since a bookkeeper will always keep your financial records up-to-date and organized. They will be the first person you talk you if you need an update on your account balances, income, expenses, and so on. Having a bookkeeper around for your business typically pays for itself quickly when you consider the time you can save for other tasks by having them around.

Basic Financial Statements

There are certain financial statements which a responsible business owner needs to be ready to have at a moment’s notice. Whether it be for the government, or simply an update on your financial situation, a bookkeeper will help you prepare each of these basic financial statements. Typically, this is also where bookkeepers really excel at their craft. A professional bookkeeper is usually able to create some really visually engaging and interactive statements. After all, this is a task that they have practicing for quite some time if they have plenty of experience.

Basic Job Responsibilities of a Bookkeeper

bookkeeping and tax servicesAs mentioned, a bookkeeper is the one that you depend on for keeping track of all the current events in your business finances. Although there are definitely many bookkeepers which can help you to handle the responsibilities that come along with taxes, you shouldn’t expect this from them. As we will demonstrate, though, bookkeepers are still a crucial part of the tax preparation process, and will definitely help make your life a lot easier when tax season arrives.

Top Related: Small Business Bookkeeping

Tasks Which You Need Later on for Taxes

When you are ready to start filing taxes, you will need to have access to records of all the financial activity for your business’ fiscal year. If you had a bookkeeper around for the entire year, this will be very simple. You simply will need to pull up the financial statements that your bookkeeper prepared, and transfer this information over to your tax forms. If you hire one of the best bookkeeping and tax services, both bookkeeping and taxes can be handled for you. Just don’t expect services which specialize in bookkeeping alone to handle your taxes.

Income Statements

Income statements are something that any sort of bookkeeper will handle for you. This is the document which illustrates all the revenue and expenses which you generated over a certain period of time. These are usually done monthly or weekly, but can also be done annually. When it comes time for you to do taxes, the person handling the job will need to have access to this information so that they can file the right information on over to the government on your tax forms. When handled by a professional bookkeeper, income statements will be a very helpful component to assist you during tax season.

Balance Sheets

As a responsible business owner, staying updated with your business’ current net worth is important. By calculating the value of all your business assets, accounting for your business equity and any liabilities, a bookkeeper will prepare balance sheets. The main goal here is to keep the management of your business up-to-date with your business’ net worth. If your business is doing well financially, the profits and the total value of your assets will be higher than expenses and debts. In simple terms, balance sheets are a snapshot of your business’ financial situation, and also something which any bookkeeper can handle for you.  

Cash Flow Statements

In a world where expenses are becoming increasingly digital, accounting for cash flow is something which is important for understanding the full scope of your business’ financial status. Cash flow statements prepared by a bookkeeper will compile and organize all the transaction information for cash and cash-equivalent transfers within your business. If you understand where your business cash is going, and where it comes from, you can start to have a heightened understanding of how your business handles these types of transactions. It might also help you to generate strategies for reducing your expenses as you start to notice cash expenses which aren’t exactly necessary.

Statements of Changes in Equity

Statements of Changes in Equity are required under USA law, and various governments around the world, to be available in situations where you need to present income statements and balance sheets. It is also one of the basic financial statements which you should expect your bookkeeper to handle. The equity for your business can be calculated by adding up the total value of your assets and subtracting the total value of your liabilities (like your debts). Since this can change quickly over time, this statement should be updated by your bookkeeper each time you need to present this information over to the proper authorities

Do Bookkeeping Services Also Help with Taxes?

bookkeeping and tax servicesOne of the points we have tried to make clear is that your average bookkeeper is not a specialist in taxes. However, this doesn’t necessarily mean that each and every bookkeeping service you come across won’t handle taxes. People who assist with business finances are part of a very large and broad industry of professionals. Just like any other industry, there will be people who specialize in certain aspects of the industry, and those that don’t handle the jobs that you need help with. Thankfully, there are also businesses which have employees to handle many different niches of business finance.

Bookkeepers Themselves Don’t Usually Handle Taxes

Bookkeepers themselves are usually not the ones you will call if you need assistance with taxes. As mentioned above, they can help you with the financial statements you need along the way in order to handle taxes on your own. In order to find somebody who can handle both of these jobs for you, you are best off looking for a company which handles both bookkeeping and tax services.

Bookkeepers Are a Crucial Part of Tax Preparation

Although a bookkeeper won’t be the person you call when tax season arrives, they should be the person that you have around in all other parts of the year. If your bookkeeper does their job correctly, they will leave you with all the information that you need to provide on your tax forms. As a result, even though bookkeepers may not handle the specific job of filing your business’ taxes, they will help you with just about every step along the way.

Certain Businesses Have Employees for Both

bookkeeping and tax servicesIf you want to have both bookkeeping and tax services, one of the best options for you to consider is hiring a service which has employees that specialize in both bookkeeping and tax filing. Although you may come across many different applicants and service options which solely supply bookkeeping or tax services, it’s important to understand that there are many services which provide both of these things. This is a great option if you want to have a different specialist for handling bookkeeping and tax forms without needing to hire multiple employees or services.

Necessary Components & Tips for Handling Taxes on Your Own

To be clear, you don’t necessarily need to hire any of the bookkeeping and tax services that are available. As long as you have access to all of your business’ yearly financial information, and keep great records, handling taxes on your own isn’t always entirely difficult. In this section, we will break down some of the necessary components for handling taxes on your own. While you look through each of the following aspects of handling taxes on your own, consider whether or not you want to handle this process, or if you would rather delegate these tasks to one of the many bookkeeping and tax services.

1. Receipts & All Expenses

Business expenses are something which you should keep really great track of. When your business expenses are strategically planned and remembered, you will be able to record many of them on your tax files in order to receive a better deduction. This is something which business owners can get a little lazy on. If you have a professional bookkeeper on your team, though, you will simply need to pull up their financial statements to access this information for your tax forms.

2. Business Account & Card Statements

If you don’t have a bookkeeper to help you out, your business account and credit card statements will need to be something you have ready at your disposal while filing your taxes. This will help you to calculate all of your expenses, income, and so on. When you consider that you may end up needing to sift through 12 months of statements, this can end up being a pretty time-consuming job. Having a bookkeeper, though, would have saved you a lot of time since they routinely generate income statements which include information like this.

3. Total Sales Revenue

Depending on the type of business you have, where your business operates, your total sales revenue, and so on, you will need to pay a percentage of your total revenue for taxes. Although this may not necessarily account for things like business expense deduction and payroll taxes, having your total sales revenue for the fiscal year will be necessary in order to file and pay your taxes legally. Those who have bookkeeping and tax services at their disposal won’t have to worry about this, since it something which will be continuously calculated and updated.

4. Money Set Aside for Payment

Taxes are a part of life that you simply won’t be able to avoid. For this reason, many business owners who handle their own taxes will gradually prepare for taxes by setting aside money that will be spent on taxes. To do this, they will need to know all the latest tax laws and calculate how much they need to set aside each month or so to be used later on for taxes. Those who have small businesses will especially find this technique useful since they will likely already be dealing with limited funds. Setting aside and preparing money for taxes will help you to pay taxes without causing a financial burden. However, this will also be difficult for those who don’t know how to calculate what they will owe.

5. Knowledge of All Taxable Income Streams and Deductible Expenses

There is income which is very easy to keep up with, and there are certain types of income which may be easy to miss. If you are serious about filing your taxes to the best of your ability, this is something which you might mess up. Sometimes, your business has income which comes from sources which may be hard to remember. The interest that you earn from your accounts, as an example, is taxable. The same could be said for business expenses which you may not realize can be deducted. Businesses who handle taxes on their own will be a lot more likely to forget to file all their deductibles and taxable income streams than those who hire one of the best bookkeeping and tax services that specialize in their knowledge of the picky and minute details.  

6. Plenty of Time to Invest

The most frustrating part of filing taxes on your own is that it will also usually entail a pretty sizable time investment. When you are in charge of a business, you already will have plenty of responsibilities to handle. Your time will quickly become one of your greatest assets. If you have enough income, the time you save by hiring employees and services will soon prove to be a lot more valuable than the money you spend paying other people to handle tasks. Tasks like this, which you would rather pay others to do, are also jobs which will be done more effectively and quickly in the hands of a specialist. These are a couple of reasons many business owners might choose to hire others for taxes.

7. All the Necessary Government Paperwork

The many different government forms that can be involved in the tax filing process are one of the biggest reasons why a business can end up hiring bookkeeping and tax services to handle things for them instead of trying to do everything properly on their own. Although certain businesses may only need to fill out a handful of forms, there are many types of businesses and circumstances where you will be expected to do more. The worst part is that nobody is going to call you and guide you through the process. As a result, if you aren’t already aware of each form that you file over during tax season, this will be a lot more difficult. If you get lost, though, you can always hire a professional service to handle things for you.  

Bookkeeping and Tax Services: What they Look Like & What to Expect

bookkeeping and tax servicesIf you are able to make the extra investment, hiring one of the best bookkeeping and tax services will likely prove to be worth your while. Whatever reasons you have for choosing to hire a professional service for handling bookkeeping and tax filing, it’s important that you know what to expect. With many different high-quality bookkeeping and tax services on the market to consider, here are some of the services which you should expect in order to get the best possible service to match the needs of your business.

Affordable Rates Which Don’t Harm Your Business

Hiring one of the best bookkeeping and tax services shouldn’t be something that creates a big hole in your pocket. As a responsible business owner, it is your job to ensure that you don’t put your company in a position where they make financial commitments that they can’t afford to uphold. Typically, bookkeeping and tax services are something which doesn’t cost too much, but will still be a sizable expense. For this reason, one of the things you should look for as you sift through your bookkeeping and tax services options is a price which you can easily fit into your business budget.

Really Efficient When Used All Year

As we illustrated above, there are many tasks of a bookkeeper which will simplify and shorten the time commitment that is required to properly file your taxes. Without the organized records that a bookkeeper routinely provides in their financial statements, you will need to spend more time compiling all this information with a year’s worth of account statements, credit card statements, and so on. If you take advantage of bookkeeping services all year, it will be much easier to pass on their information to the person who will file your taxes. It will also be more affordable since you will have much of the information you need to file taxes from your bookkeeper’s work.

Bookkeeping & Tax Services Take on Multiple Job Descriptions

Typically, those who want both bookkeeping and tax services for their business are best off hiring a company which takes on both of these job descriptions. After all, bookkeepers don’t usually file taxes, and professional tax filers don’t usually handle bookkeeping tasks. To make up for the demand in the market, there are many different companies which combine the skills from multiple niches of business finance to provide a one-stop solution for jobs like these.

Should Handle Daily Expenses & Financial Statements

Tax filing will only be a yearly tradition. If you hire a company which handles both bookkeeping and tax services, daily expenses need to be organized. This is part of a bookkeeper’s job, and should accordingly be expected to be part of any service like this. The same goes for the preparations of the basic financial statements we described above. Since putting both bookkeeping and tax services together usually requires a team of professionals of both niches to work together, bookkeeping tasks like these should be a gradual part of the process taken for tax preparation.

Preparation of Tax Documents

Depending on the type of your business, your total income, and various other possible variables, you will need to prepare a particular number of tax documents. There are endless possibilities here. These will come with names like Form 1040, Form 1099, Form 1120, and so on and so forth. Tragically, it is often very confusing for a business owner to navigate a complicated system like this, with a seemingly endless collection of possible forms. Of course, you are expected to know the law and which forms you need to fill out. This is why many people will simply hire one of the best bookkeeping and tax services to handle all the forms for them.

Assistance with Broader Financial Plans

One of the benefits of working with a company that handles both bookkeeping and tax services is that they probably also handle other similar jobs in the industry. For example, receiving broader financial planning advice is something that any of the best bookkeeping and tax services will also offer you. Since need of assistance with financial matters is what compelled you to search for these sorts of services in the first place, you should expect the best option to also be a resource for you to trust for advice on financial plans, strategies, and so on. Bookkeepers usually don’t handle broader strategies, but if you hire a company which takes on multiple niches of business finance, this is something that you should expect.

IRS Problem Assistance

When the worst-case scenario arrives, your business is in trouble with the IRS. In many cases, those who are being audited by the IRS ended up in their position because they were ignorant of a certain law or necessity. Not necessarily because they meant to break the law. Then, there are instances where the IRS is wrong, and you are being investigated because they suspect you may be guilty of something you are actually completely innocent of. When IRS problems arise, having the help of professionals who are experienced in handling similar problems in the past will be helpful. Thankfully, this is also something that many of the best bookkeeping and tax services will offer.

5 Examples of High-Quality Bookkeeping and Tax Services & Why They Work

bookkeeping and tax servicesNow that we have broken down how the bookkeeping and tax services industry works, let’s go ahead and highlight 5 different companies which provide top-quality service in this niche. Although you may not even choose to hire one of these companies, if anything, you will leave with a heightened sense of what to expect from this sort of service.



bookkeeping and tax servicesBased out of Virginia, has a team of professionals who specialize in all areas of accounting, bookkeeping, taxes, and so on. They offer a service which is completely remote, which lets USA-based businesses from all states hire this company without needing to dedicate some extra office space for new employees.

Service Highlights

    • Remote Bookkeeping and Accounting
    • Tax Preparation & Advising
    • Review of Financial Statements
    • Financial Planning & Advice
    • Budget Planning
    • QuickBooks Set-Up
    • IRS Resolutions

Prices & Packages

A bookkeeper may not be the most affordable option that you will find on the market, but they have a very clear system of prices and packages which make it a lot easier to know exactly what type of service you will receive in advance. Depending on the number of transactions your business handles in a month, you may or may not qualify for one of their small business packages.


No matter what your business size is, needs, or reasons that compel you to consider bookkeeping and tax services, Bookkeeping stands out for their longevity in the field and a team of professionals which specialize in all different niches of business finance.

  1. On Line Bookkeeping and Tax Services

bookkeeping and tax servicesIntro

With a team of professionals that have plenty of experience in each of their particular niches of business finance, On Line Bookkeeping and Tax Services is another great one-stop solution that can provide businesses with both tax and bookkeeping services.

Service Highlights

    • Online Client Portal and Accounts
    • Bookkeeping Statements
    • Tax Planning and Compliance
    • A team of Specialists in Diverse Niches
    • Fulfillment of all CFO tasks
    • Half-Hour Complimentary Consultation

Prices & Packages

It isn’t always easy for services like this to price themselves in a manner which is beneficial to both their clients and themselves. One area where this service could be improved upon in the future is having clear-cut packages with prices.


Just like some of the other top options in this industry, On Line Bookkeeping and Tax Services serves clients across the United States, regardless of what state that they live in. They offer the ability to do all interaction and payments online, which makes it really easy to use this service to save some time.

  1. Coleman & Associates Tax, Accounting & Financial Services

bookkeeping and tax servicesIntro

Many businesses who want to hire a service for handling their bookkeeping jobs and to help with filing taxes will prefer to hire a company which works completely remotely. With remote CFO services and a team of qualified professionals, Coleman & Associates stands out as one of the best at handling jobs like business bookkeeping and taxes.

Service Highlights

    • Remote CFO Services
    • Remote Bookkeeping Services
    • Bill Processing and Payment
    • Online Client Center and Payment Portal
    • Tax Preparation Services

Prices & Packages

Depending on what specific services you need, and how much work you need to have handled, the prices and packages of this company can vary. In order to receive a quote, you need to contact them and provide them with a complete picture of your business’ needs.


This is another great company to keep in mind as an example of a high-quality provider of bookkeeping and tax services. What makes this company really stand out is that they can be hired remotely, regardless of what part of the United States you live in. This makes things a lot easier than making physical trips to an office to talk with your bookkeeper.

  1. Balanced Bookkeeping and Tax Services


bookkeeping and tax servicesThis is another example of a bookkeeping company which can handle all the tasks of a bookkeeper, but still, have the employees and qualifications necessary to help with taxes. Like some of their competitors, clients have the ability to make payments online and know exactly what they will receive before committing to any sort of deal.

Service Highlights

    • Tax Preparation, Planning & Problem Solving
    • QuickBooks Setup, Training & Assistance
    • Bookkeeping Tasks and Statements
    • IRS Problem Resolutions
    • Estate Planning & Elder Care
    • Online Payment Portal

Prices & Packages

Balanced Bookkeeping and Tax Services provides many services, which include much more than assistance with financial statements and tax filing. For this reason, the price that you pay with them depends on what you need assistance with. In any case, one thing that really stands out with this company is that they offer an impressive range of financial services for your business.


In terms of professionalism, responsiveness, and quality, this is one of the best companies to keep in mind as an example of excellent bookkeeping and tax services. They have a wide array of services, employees with all the necessary credentials and expertise, and a simple system of payment and receiving services.

  1. ABC Bookkeeping and Tax Services


bookkeeping and tax servicesBased out of California, ABC Bookkeeping and Tax services provide their services to those based locally. Featuring a group of professionals who specialize in many different industries of business finance, this is another great option to consider if you want to hire somebody locally in California.

Service Highlights

    • Bookkeeping Statements and Responsibilities
    • Tax Preparation & Planning
    • QuickBooks Setup, Training & Support
    • IRS Problem Resolution
    • Notary Public

Prices & Packages

Since this is a company which specializes in many different tasks and niches of business finance, the exact service prices that you should expect will depend on the current circumstances of your business, and the exact services that you are seeking to have. Those who simply want bookkeeping and tax services will clearly be able to have a better price than those who take advantage of all the available services.


This company is a wonderful example of a high-quality bookkeeping service which can handle many other jobs like taxes, IRS problems, and assistance with helping your business become more financially organized on their own. Due to their high-quality and diverse range of services, and the background experience to handle many different business financial tasks, this company stands out as another great model of excellent service.

Bookkeeping and Tax Services: Major Points & Summary

A bookkeeper is usually not the person that you will call if you need assistance with taxes. They will typically handle basic financial statements and monitoring of your daily expenses. Thankfully, there are many ways to receive both bookkeeping and tax services from one source. Typically, people will either hire a professional which specializes in both of these niches of business finance or simply hire a company with a team of professionals competent in handling these tasks, along with any other financial services that you may need.

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