I have not done my bookkeeping in over a year, what do I do?
Take a breath. This happens to more small business owners than you’d think. Running a business takes all your energy, and the books end up on the back burner. A year or more of backlog feels overwhelming, but it’s completely fixable.
The first step is gathering your financial documents. Bank statements and credit card statements for the entire period are the foundation. Most banks let you download these going back several years through online banking. If you’ve paid contractors over $600, pull those records for 1099 reporting. Invoices, receipts, and loan statements help fill in details, though the bank records are the most critical piece.
With documents in hand, the work involves reconstructing your books month by month. Each period gets entered and reconciled before moving to the next. Bank transactions are categorized, deposits are matched to income sources, and expenses are coded to the right accounts. This systematic approach makes sure nothing gets missed and each month ties out before moving forward.
You could tackle this yourself, but a year of backlog on top of actually running your business is a lot to take on. Catch-up bookkeeping exists for exactly this situation. Someone experienced can work through the backlog faster and knows what to look for to catch errors that could cause problems at tax time or during an audit.
This type of work is typically priced on a project basis rather than a monthly fee. The scope depends on how many months need reconstruction, how many bank and credit card accounts are involved, and how organized your existing documents are. Once you provide the statements and records, a bookkeeper can assess what’s needed and give you a clear quote.
After your books are caught up, you’ll have clean records ready for your accountant. You’ll also finally see where your business actually stands financially. Some owners discover they’ve been more profitable than they realized. Others spot where money has been leaking. Either way, having accurate numbers means better decisions going forward. And ongoing small business bookkeeping on Long Island takes far less effort than digging out from a year-long backlog every tax season.
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More Questions
What is included in full-service bookkeeping?
Full-service bookkeeping includes transaction categorization, bank and credit card reconciliation, and monthly financial reporting. These core functions keep your books accurate, organized, and ready for tax time without you having to manage them yourself.
Read answerHow long does it take to catch up months of messy books?
Timeline depends on how far behind you are, how many transactions you have, and whether records are organized or scattered. A few months of backlog with clean statements takes 1-2 weeks. Years of neglected books can take 6-8 weeks or more.
Read answerWhy is my cash flow tight even when sales are good?
Sales recorded on your books aren't the same as cash collected. When invoices sit unpaid, your profit and loss statement looks healthy while your bank account struggles. Tracking receivables and following up on overdue invoices tightens the gap.
Read answerHow far back can a bookkeeper go to clean up my books?
A bookkeeper can go back as far as records exist. Most catch-up projects focus on the last three to six years to cover IRS audit periods and unfiled returns. The main constraint is whether bank statements and other documentation are available to support the reconstruction.
Read answerAre the products I sell in my salon taxable in New York?
Yes, retail products like shampoo, conditioner, and styling products are taxable in New York. Services are generally not taxable outside NYC. Your bookkeeping should keep product sales separate from service revenue for accurate sales tax filing.
Read answerHow do I track income and expenses by property?
Use classes in QuickBooks to tag every transaction with a property name. This lets you run a profit and loss report for each building separately, showing which properties are profitable and which ones are costing you money.
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