Is Monthly Accounting a Must-Have or Overkill?

Most small business owners opt for the DIY approach or outsource bookkeeping and taxes. These options are well-known and affordable, so when you discover monthly accounting, you may wonder, “Is this worth it, or is it unnecessary?”

Paying for a monthly accounting package (bookkeeping, monthly financial statements, year-round tax strategy and filing, and unlimited advice) seems like a lot if you’ve just been doing the bare minimum, but it’s not overkill! Let me explain.

At CSI Accounting & Payroll, we’ve provided monthly accounting for nearly 60 years. That means we’ve spoken to thousands of prospective clients who have wondered:

• Is monthly accounting even necessary for my business?
• Is a monthly accounting package too many services? Why can’t I pick which services I want?
• How can I tell if a monthly accounting firm is good?

Is Monthly Accounting Unnecessary?

Why do some people call monthly accounting unnecessary? Because it’s not necessary to keep a business open. It’s not even the only thing that can help a business grow.

It’s simply a tool. Monthly accounting is protein powder, not a Band-Aid. It fuels growth if you work at it, but it won’t save a business that’s failing.

There are many businesses that are NOT good fits for monthly accounting services. Super small ones with very little financial activity won’t get enough insights to get good value, whereas large ones that hire in-house accountants or a CFO won’t need to outsource anymore.

Is monthly accounting right for you? Or is a different solution better? Find your answer here:

Package vs. Individual Services

For those who are good fits on paper but don’t see the value in a complete monthly accounting package, it’s the same story.

Some business owners aren’t interested in a full monthly accounting package; They just want their taxes filed. While some monthly accounting services will just file taxes, others don’t (including us at CSI). That’s because of the: 

• Lost value.
• Higher filing fees.

Let’s talk about them.

Lost Value

When you outsource your taxes, your tax preparer uses the financial data that your bookkeeper put together. If those services are separate, tax strategy is lost (if it's ever even attempted), and there’s no free audit protection in place (since your tax preparer can’t certify that your books are correct).

With a full monthly accounting package, you get a complete, year-round tax strategy to legally minimize what you owe – plus audit protection is often included at no extra charge.

Higher Filing Fees

Beyond that, monthly accounting services that charge separately for tax filing often charge more than an annual tax preparer would. You’re paying more, but you’re not reaping any of the benefits of a full monthly accounting package:

• Minimized taxes.
• Accurate and current books.
• Unlimited advice from an expert in your industry all year long.

If you’re okay with not getting those benefits, it makes more sense to go to an annual tax preparer to file your taxes instead.

Good vs. Bad Monthly Firms

Lastly, many people worry about finding a good-quality solution (no matter what kind of solution they’re looking for). What’s the difference between good and bad monthly accounting firms?

Bad monthly firms:

• Are hard to reach.
• Use confusing accounting lingo.
• Have lots of staff turnover.
• Make your business feel unimportant because they have large business clients.
• Get bogged down with individual, non-business owner taxes.
• Are not able to take on new clients at times.
• Don’t have transparent pricing and procedures on their website.
• Outsource their work overseas for cheap and don’t pass the savings on to you.
• Don’t include audit representation in their monthly fee.
• Charge thousands of dollars at once to file your taxes.
• Overuse AI and lose their personal touch.

Good monthly firms are the opposite. They:

• Are easy to reach and actively reach out.
• Use simple terms and explain difficult concepts thoroughly.
• Have great staff retention.
• Make your business feel important because they focus on small business clients.
• Don’t handle individual, non-business owner taxes so they’re free to do yours without an extension.
• Are always able to take on new clients.
• Have transparent pricing and procedures on their website.
• Don’t outsource their work overseas to ensure the work is done accurately.
• Include audit representation because they’re confident in their work.
• Distribute the cost to file your taxes throughout the year, avoiding a fee spike.
• Use AI to the best of its ability while keeping their personal touch.

(By the way, CSI checks all of the boxes of a good-quality monthly accounting firm!)

Monthly Accounting: See for Yourself!

Ultimately, the need for monthly accounting varies. It’s just not the right solution for every business, the full package is required to get a great value, and there are good and bad monthly accounting firms.

Now that I’ve clarified these points, are you ready to check out monthly accounting services? If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation: