The short answer
A written scope should name the accounts to be reconciled, the reports you will get and the date they arrive, any cleanup or catch-up work, and who files payroll returns, sales tax returns and Forms 1099. It should also cover how access is set up, who owns the file, how the work changes and how either side ends it. Agree to it in writing before any work starts.
Why the scope matters more than the sales conversation
A bookkeeper has sent you a proposal, or is about to, and the question is simple: what exactly am I agreeing to? A written scope of work, sometimes part of an engagement letter, is the answer. It protects both sides. You know what you will receive and when, and the bookkeeper knows what you will provide in return.
Vague scopes cause most of the trouble in bookkeeping relationships. "Monthly bookkeeping" can mean entering bank transactions and nothing else, or it can mean reconciling every account, chasing receipts and explaining the reports. The scope is where that gets settled. This page covers what to look for from a bookkeeping point of view; it is not legal advice, and you may want an attorney to read any contract before you sign.
The work, named precisely
A good scope lets someone who was not in the meeting read it and know what happens each month. Look for:
- Accounts reconciled, by name. Each bank account, credit card, loan and payment processor. Cards and loans are often left out by accident.
- The volume assumed. Roughly how many transactions, accounts and employees the work is based on, so everyone knows what would change it.
- Bills and invoices. Whether the bookkeeper enters bills only, or also schedules payments for your approval; whether they create customer invoices or only record payments.
- Payroll recording. Whether payroll from your provider is recorded in the books each pay period, and by whom.
- Cleanup or catch-up. Any work to fix or fill in earlier months, listed as its own item with the period it covers and a point at which it counts as done.
- What is excluded. Tax preparation and tax advice, audits and reviews, legal advice and investment advice are not bookkeeping, and a careful scope says so. It should also name anything else left out.
| Task | Who usually does it | What the scope should say |
|---|---|---|
| Federal payroll returns (Form 941, quarterly) and deposits | The payroll provider or the employer; the employer stays responsible | Who files and pays, and that the bookkeeper records payroll and reconciles liabilities |
| Idaho withholding returns (Form 910) and annual Form 967 | The payroll provider or the employer | Who files, and whether a Form ID-POA is on file for anyone speaking to the Tax Commission |
| Idaho sales tax returns | The owner or a tax professional, usually online through the Tax Commission's TAP system | Who files and on what schedule; the bookkeeper keeps sales tax payable reconciled |
| Forms 1099-NEC for 2026 payments | A CPA, a filing service or the owner | Who files by the IRS due date; the bookkeeper provides reconciled vendor totals and W-9 status |
| Business income tax return | A CPA or enrolled agent | What year-end package the bookkeeper delivers, and by when |
| Approving and releasing payments | The owner | That the bookkeeper records payments but does not approve them |
Filing roles belong in writing
The bookkeeper prepares and reconciles the records behind payroll, sales tax and Forms 1099. Who actually files each return is a separate question, and the scope should name a person or provider for each one. The table above shows the usual split.
This matters because responsibility does not move with the work. The IRS says an employer that outsources payroll is ultimately responsible for depositing and paying federal employment taxes, and remains liable for taxes, penalties and interest if the provider fails to pay. The IRS suggests employers enroll in EFTPS with their own PIN to check that deposits are being made.
State agencies have their own rules. The Idaho State Tax Commission says an employer using a tax preparer or accountant must file a valid power of attorney, Form ID-POA, before the Commission can speak to that person about the withholding account. For Forms 1099-NEC, the IRS reporting threshold rose to $2,000 for payments made in 2026, and the form is due by January 31, or the next business day when that falls on a weekend; for 2026 payments that is Monday, February 1, 2027. Paying contractors: the records to have before January covers the vendor records behind those forms.
Reports, dates and the handoff to your CPA
Name the reports, not just "monthly financials". A typical list is a profit and loss statement, a balance sheet, a reconciliation report for every account, and accounts receivable and payable aging where you invoice or enter bills. What your bookkeeper should send each month explains each one.
A scope should give two dates. One is when you provide statements, receipts and answers to open questions. The other is when the bookkeeper delivers reconciled books and reports. It should also say what happens when the first date slips, which is usually that the second one moves.
Add the year-end handoff. Say what the CPA will receive, such as reconciled year-end statements, the general ledger and the vendor totals for Forms 1099, and roughly when. The CPA prepares the return; the bookkeeper makes sure the records are ready for it.
Access, ownership and how it ends
The last part of a scope covers trust and the exit. Reasonable terms include:
- A separate, named login for the bookkeeper in each system, never a shared password, with view-only bank access where that is enough.
- Multi-factor authentication on accounting, payroll and bank logins where offered, which the SBA's cybersecurity guidance encourages.
- An agreed way to exchange statements and payroll documents other than ordinary email where possible.
- The accounting file and subscription in your business's name, with you holding administrator rights.
- Your records stay with you. The IRS generally expects records to be kept until the period of limitations for the return runs out, and employment tax records for at least four years.
- Notice each side gives to end the work, what is finished before handover, and when access is removed.
Fees and changes, without surprises
The fee section should state what the fee covers, how often it is billed, and when payment is due. One-time work such as setup or cleanup should be priced separately from the recurring monthly work. It should also explain how changes are handled: a new bank account, a new employee or a second location usually changes the work, and extra work should be agreed in writing before it is done.
At Danielson Bookkeeping & Consulting, a consultation and a records review come first. What is included, what is not, the schedule and the fee are then agreed in writing before work starts, as set out on how we work. The services the scope can draw on are listed on small business bookkeeping. For what to bring to that first conversation, see the consultation checklist. Churches have their own version: what a church bookkeeping scope should spell out.
