You trust your accounting firm with your money, your time, and your sleep. You should know exactly what you are getting. Many firms sell long lists of services that sound impressive but do not protect you when pressure hits. This blog cuts through the noise. It lays out 5 core services every accounting firm should offer before you sign an engagement letter. These services support tax, cash flow, and long term stability. They help you avoid penalties, missed deadlines, and ugly surprises. They apply whether you run a small shop or manage a growing company. They also guide you if you are choosing business accounting in North Richland Hills TX or any other city. As you read, compare each core service to what your current accountant provides. Then decide if you are covered or exposed.
1. Accurate bookkeeping and monthly reports
First, you need clean books. Without clean books, every other service turns weak and uncertain.
Your firm should
- Record every sale, expense, payroll run, and owner draw
- Reconcile bank and credit card accounts each month
- Track loans, assets, and equity so your balance sheet makes sense
- Give you monthly profit and loss and cash reports you can read
The numbers must match your bank statements. The categories must match IRS guidance. You can check common recordkeeping rules on the IRS recordkeeping page. When bookkeeping is strong, you see problems early. You notice rising costs. You spot slow paying customers. You see if your prices cover your costs.
2. Year round tax planning and filing
Second, your firm should handle tax planning all year. Tax work is not only a rush in March and April. You face tax choices with every major spend and every new hire.
Your firm should
- Estimate your tax bill during the year so you can set cash aside
- Review your legal structure and suggest changes if they save tax
- Explain what you can deduct in clear words without scare tactics
- Prepare and e file all required federal and state returns on time
The firm should base advice on current law from trusted sources like the IRS Small Business and Self Employed Tax Center. You should leave each tax meeting with clear actions. For example, you might adjust quarterly estimates or change how you track mileage. The goal is simple. No shocks. No fear. No letters you did not expect.
3. Payroll setup and compliance
Third, if you pay workers, your firm should help you run payroll in a safe way. Payroll mistakes cause harsh penalties and angry staff. You should not face this alone.
Your firm should
- Set up your payroll system and tax accounts correctly
- Confirm workers are classed as employees or contractors under law
- Calculate and deposit payroll taxes on the right schedule
- Prepare W 2 and 1099 forms and file them with the proper offices
The firm should also explain basic wage rules and overtime rules. You can compare their guidance with wage law help from your state and from the U.S. Department of Labor. Clear payroll support protects your staff and your business. It also protects you from back taxes and audits.
See also: 3 Signs It’s Time To Find A New CPA For Your Business
4. Cash flow and budget support
Fourth, your firm should help you understand cash. Profit on paper does not keep the lights on. Cash does.
Your firm should
- Help you build a simple budget that matches your goals
- Prepare cash flow forecasts that show what money comes in and out
- Point out months when you may run short so you can plan ahead
- Review pricing, payment terms, and key costs with you
This support does not need charts or complex models. It needs clear questions. How much do you need each month to cover rent and payroll. When do your customers pay. What costs can you cut without hurting service. When your firm walks through these with you, you can decide whether to save, borrow, or grow with less fear.
5. Clear guidance and ongoing check ins
Fifth, you deserve honest guidance, not silence. Numbers only help when someone explains what they mean in plain words.
Your firm should
- Offer regular check ins, at least once a quarter
- Walk through your reports line by line when needed
- Answer questions within a clear time frame
- Flag risks such as late payments, rising debt, or weak margins
A strong firm will not sugarcoat problems. It will show you where you stand and what you can change. That support reduces stress for you and your family. It also gives you confidence when you talk with lenders or partners.
Comparison table: minimum vs strong service
| Service | Minimum you often see | Strong support you should expect |
|---|---|---|
| Bookkeeping | Year end clean up for tax only | Monthly reconciled books with clear reports |
| Tax | One time tax return prep | Year round planning plus on time filing |
| Payroll | Basic pay run setup | Full payroll tax filing and worker status review |
| Cash flow | No budget or planning support | Simple budget and cash forecast with review |
| Guidance | Contact only at tax time | Regular check ins and fast replies to questions |
How to use this list with your current firm
You can use these five services as a checklist. Take your latest engagement letter. Mark each service as present, weak, or missing. Ask your firm direct questions.
- Who checks my books each month
- When do you review my expected tax bill
- Who handles my payroll filings
- When will we talk about my cash flow
- How often will we meet each year
If answers are vague, you have a clear sign. You may need to ask for stronger support or look for a new firm that offers these core services without drama or confusion.
