Write-up services (also called bookkeeping services or accounting services) are a foundational offering for many CPA firms, particularly those serving small and mid-sized businesses.
What Are Write-Up Services?
Write-up services involve the CPA firm performing routine accounting functions on behalf of the client:
Core Services
- Transaction recording: Entering journal entries from source documents
- Bank reconciliation: Matching bank statements to recorded transactions
- General ledger maintenance: Maintaining the chart of accounts and ledger
- Trial balance preparation: Generating adjusted trial balances
- Financial statement preparation: Producing balance sheets, income statements, and cash flow statements
- Payroll processing: Computing wages, withholdings, and filings
Additional Services
- Accounts receivable and payable management
- Fixed asset tracking and depreciation
- Sales tax calculations and filings
- Year-end adjusting entries
- 1099 preparation and filing
Write-Up vs. Other CPA Services
| Service | Write-Up | Compilation | Review | Audit |
|---|---|---|---|---|
| Record transactions | ✅ | ❌ | ❌ | ❌ |
| Prepare financials | ✅ | ✅ | ❌ | ❌ |
| Provide assurance | ❌ | ❌ | Limited | Reasonable |
| Independence required | ❌ | ❌ | ✅ | ✅ |
Client Profile
Write-up services are typically used by:
- Small businesses: Companies with fewer than 50 employees
- Startups: New businesses building financial infrastructure
- Owner-managed: Businesses where the owner handles operations, not accounting
- Industry-specific: Restaurants, retail, construction, medical practices
Engagement Structure
Monthly Services
- Process prior month's transactions
- Deliver financial statements and reports
- Review results with client
- Handle payroll processing
Quarterly Services
- Quarterly financial reporting
- Tax estimate preparation
- Sales tax filings
- Compliance reviews
Annual Services
- Year-end adjusting entries
- Annual financial statements
- Tax return preparation
- Planning and advisory sessions
CPA Firm Economics
Revenue Model
- Monthly or quarterly recurring fees
- Annual engagements for year-end work
- Additional fees for ad-hoc services
Profitability Considerations
- Staff leverage: Junior staff perform routine work
- Standardization: Templates and checklists reduce time
- Technology: Cloud accounting reduces manual data entry
- Upsell opportunity: Write-up clients often need tax, advisory, and audit services
Technology Trends
Modern write-up services leverage:
- Cloud accounting (QuickBooks Online, Xero): Shared access with clients
- Bank feeds: Automated transaction import
- AI categorization: Machine learning classifies transactions
- Client portals: Digital document exchange
- Automation: Rules-based processing for recurring transactions