Find catch-up bookkeeping overwhelming? Many small and medium business owners need help to stay up-to-date regarding bookkeeping. Whether you have fallen behind a couple of months or several years, here are some steps you can take to fill the gaps and update your records.
For more help catching up on your bookkeeping and getting your small business bookkeeping back on track, contact the experts at Bookkeeping For You today online or by phone at 314-605-1800. Offering superior bookkeeping services nationwide, we look forward to helping you with all your bookkeeping services, from bookkeeping for taxes to transaction processing and account reconciliation services.
Catch-Up Bookkeeping: 3 Key Steps
The following are some of the most important key steps you should take when trying to catch up on bookkeeping and get organized.
1. Organize Your Receipts
The first step to take for catch-up bookkeeping is to gather all your receipts and organize them. While this can be time-consuming and tedious, it is a vital step to guide other actions you take toward updating your books.
These are the documents you need to look for:
- Invoices – Gather any customer invoices you have sent. You may have physical copies of invoices or may have stored them digitally on your computer.
- Bad Debts – Check if there are any bad debts or amounts you have not been able to collect from customers. Having records of bad debts can reduce the gross income on which tax is calculated.
- Vendor Invoices – Ensure you collect and organize all the bills and invoices sent by your vendors or suppliers. You can request contractors or vendors to resend any bills that are missing.
- Business Expenses – Gather all the receipts of business expenses you have encountered in the period that needs catch-up bookkeeping. These expenses required to run your business are tax deductibles such as equipment, salaries, office rent, supplies, utility costs, subscriptions, and professional dues.
- Credit Card/Bank Statements – Print out any credit card and bank statements for the period you need to do catch-up bookkeeping.
2. Prepare the Bank Reconciliation Statement
A bank reconciliation statement is prepared by businesses to align the bank transactions they have recorded in their books with the bank statement. The statement helps you check if the entries you have made in your book are correct. It will also help you identify to whom and when you made a payment and from whom and when you received payments. This data can fill any gaps in the catch-up bookkeeping exercise.
3. Separate Your Personal and Business Accounts
Set clear boundaries between your personal and business finances. It becomes tricky to manage if you have merged the two accounts. Create a credit card and bank account specifically for your business that makes it easy to track expenses and payments made to the account.
Once you complete all these steps, you must diligently record the day-to-day financial transactions in the dedicated filing system.
Advantages of Hiring a Professional Bookkeeper to Catch Up on Bookkeeping
Bookkeeping is a crucial factor that is linked to any business’s success. Many small business owners face financial challenges because of avoidable bookkeeping mistakes or failure to update their books. If you have fallen way behind in your bookkeeping, the task of catching up on bookkeeping can seem overwhelming. This is where Bookkeeping For You steps in. As experienced bookkeepers, we use cutting-edge software and our deep expertise to organize and update your bookkeeping, including everything from accounts receivables and bank reconciliation to rectifying incorrect entries.
Let our top-rated bookkeeping services address your catch-up bookkeeping needs, no matter how far behind you are with your records. Contact us by phone at 314-605-1800 and take the first vital step towards streamlining your small business bookkeeping and finances.