Outsourced bookkeeping for CPA firms

IRS Publication 583 lists the documents that support gross receipts, purchases and expenses: deposit slips, invoices, receipts, canceled checks, account statements and Forms 1099-NEC among them. An outsourced bookkeeper should attach or link the supporting document as the transaction is coded, not at year end.

The same publication says the rules for paper records apply to electronic storage systems, and originals may be destroyed once the electronic system has been tested. Agree with the provider where those images live.

An outsourced bookkeeper is usually a third-party service provider under the AICPA Code, so your engagement letter should carry the disclosure the Code expects. Bookkeeping records later feed returns, so check whether 7216 consent applies to the work your provider does.

Treat the provider as a service provider under the Safeguards Rule too: contract for safeguards and review them.

Running outsourced bookkeeping inside HelloBooks means the provider never holds its own copy of the client file. Bank feeds, receipt capture and AI categorisation do the first pass; the outsourced bookkeeper handles exceptions; your reviewer sees the same reports the client will.