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
Can a bookkeeper clean up my books and then maintain them?
Yes, and this is actually the ideal approach. A bookkeeper who cleans up your file already understands your business, making the transition to ongoing maintenance smooth and efficient.
Read answerHow is bookkeeping different from tax preparation?
Bookkeeping is the ongoing work of recording and categorizing transactions throughout the year. Tax preparation is the annual process of filing returns using those records. Good bookkeeping makes tax prep faster and cheaper.
Read answerCan you fix bookkeeping that was done wrong?
Yes, fixing bookkeeping that was done incorrectly is common work. Cleanup typically involves correcting miscategorized transactions, removing duplicate entries, and re-reconciling accounts to match your actual bank statements.
Read answerWhat are the signs that my books are a mess?
Unreconciled accounts, uncategorized transactions, balances that don't match bank statements, and personal expenses mixed with business spending are the clearest signs. If you can't produce a current profit and loss statement, your books need attention.
Read answerWhat 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 answerWhat financial reports should I get from my bookkeeper every month?
At minimum, your bookkeeper should provide a profit and loss statement and a balance sheet each month. A cash flow statement is also valuable, especially for service businesses where timing of income and expenses matters.
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