Bank reconciliation
Shows that the books agree with the bank, with differences explained. If your books cannot do this, nothing else can be trusted.
Service
Accounting and bookkeeping that you can actually check
Good books answer simple questions, such as who owes you, whom you owe, and whether you made money. This page shows what to expect from good bookkeeping, whoever keeps your books.
What you should receive each month
Ask for these outputs by name. If someone cannot produce them, the work is probably data entry rather than bookkeeping.
Who owes you
A receivables list by party, with how long each amount has been due. This is the basis for chasing money.
Whom you owe
A payables list by supplier that matches their statements, or explains why not.
Profit and loss
A month and year-to-date view. Early versions may be provisional, so ask what is still estimated.
Balance sheet
Assets, loans, capital and balances. Unexplained "suspense" items are a warning sign.
A list of queries
Items the bookkeeper could not classify. A short honest list is better than silent guesses.
A ten-minute test of your own books
You do not need to be an accountant to run this. Pick any recent month and try the following.
- Does the closing bank balance in the books match your statement?
- Pick three invoices from your files. Can you find each one in the books?
- Pick your largest customer. Would they agree with the balance shown?
- Is cash in hand in the books close to what is really there?
- Is any large item sitting under "suspense" or "miscellaneous"?
- Are your personal payments separated from the business's expenses?
A "no" does not prove wrongdoing, but each one deserves a clear answer.
Who is responsible for what
| You | The bookkeeper |
|---|---|
| Hand over complete bills and statements on time | Record them accurately and on time |
| Say what unusual items were for | Ask, rather than guess |
| Keep original records and data ownership | Reconcile and report |
| Review reports and make decisions | Flag errors and gaps |
What the work involves
Bookkeeping is the record: sales and purchase entries, receipts and payments, expenses, and bank reconciliation. It usually sits in software such as TallyPrime or Zoho Books, built on a chart of accounts that suits your business.
Accounting builds on that: adjustments, depreciation, closing stock and financial statements. Someone can be good at the first and not at the second, so ask which they do.
Filing returns and audit are separate again. GST, TDS and income tax filings may or may not be included, so ask. An audit, where required, must be done independently by someone eligible. See who can do what.
Are you required to keep books?
Usually yes, though details depend on your entity and income:
- Companies must keep books of account under section 128 of the Companies Act, 2013. Section 128(5) requires the books for at least the eight preceding financial years, with their vouchers, to be kept in good order (all earlier years, for a company less than eight years old).
- Professionals: section 62 of the Income-tax Act, 2025 requires anyone in a specified profession to keep books. These are legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, information technology or company secretary work, or others notified.
- Other businesses and professions: for individuals and Hindu undivided families, including sole proprietors, the same section applies where business or professional income exceeds ₹2,50,000, or turnover or gross receipts exceed ₹25 lakh, in any of the three preceding tax years. For firms, companies and other persons the limits are ₹1,20,000 and ₹10 lakh. A new business is covered if it is likely to cross them. The section also covers anyone who declares less than a presumptive scheme's deemed profit. The Board can prescribe which books to keep and for how long, and years before 1 April 2026 fall under the Income-tax Act, 1961.
- GST-registered businesses have record-keeping duties under section 35 of the CGST Act. See what to keep for GST.
Sources: Income-tax Act, 2025, Gazette copy (opens in a new tab), section 62(1), (2) and (4) (read at source, November 2026); Companies Act, 2013, section 128(5), read on a consolidated secondary copy because the official MCA text could not be fetched.
What affects the fee
- Monthly transaction volume, and number of bank accounts
- Whether records are digital or on paper
- Backlog or clean-up needed before regular work begins
- Stock, multiple branches, or more than one GST registration
- Whether filings and reports are included
- Whether the work needs someone at your premises
We do not publish prices, because they depend on the scope. Ask for the fee in writing for a defined scope, and compare like with like.
Common mistakes
- Entering books only at return time. Errors are found when it is too late to fix them easily.
- Mixing personal and business money. It makes accounts unreliable and reviews harder.
- Reconciling nothing but the bank. Party balances and cash need checking too.
- Letting someone else own the data file. Keep ownership and backups with you.
When this is not what you need
- If you are mainly deciding who should do the work, read bookkeeping vs outsourced accounting.
- If you have a notice, audit or legal issue, check who is authorised to help before anything else.
- If you want to do it yourself first, start with the monthly documents checklist.
Want someone to keep your books?
Tell us your approximate monthly volume, your software, and how far behind you are.
