How to Catch Up on Your Bookkeeping Bench Accounting

This is especially important if you have employees, as the IRS requires accurate reporting for payroll taxes. Let’s say you invoiced a client for $5,000 three months ago, but the payment is still outstanding. Reviewing accounts receivable allows you to follow up on unpaid invoices. If your June bank statement shows a closing balance of $15,000, but your books only show $14,500, there may be an unrecorded transaction or error that needs to be corrected. Find out how pre-accounting automation can transform your business—boost efficiency, unlock time savings and organize expenses with ease. Digitizing records allows easy access, organization, and updating of financial documents.

• After reconciling accounts, reviewing payables and receivables, and analyzing inventory, you’re ready to update your financial statements.
• We’ve compiled a quick to-do list to catch yourself up before last year’s taxes are due.
• Pay close attention to routinely checking bank and credit card statements, keeping an eye out for any anomalies, and keeping an eye out for any other activity that might be unusual.
• The catch-up process involves entering all the transactions into an accounting system and reviewing and reconciling them.
• Although we offer a Catch Up Bookkeeping Service here at Bench, we know that some business owners prefer to tackle overdue bookkeeping on their own.
• If you are unsure of how to prepare these reports you can enlist the help of a bookkeeper to prepare them for you.
• Not maintaining them can literally cost you all the investment that you made in order to run the business.

Step 3: Review Accounts Payable and Accounts Receivable

They can guide you through the audit process, communicate with the IRS on your behalf, and advocate for your interests to ensure a fair outcome. Follow @ReceiptorAI on Twitter for the latest updates, tips on expense management, and insights into the future of AI in personal finance. Get the latest on AI bookkeeping automation and save hours on financial admin. With limitless options available during retirement, having tangible goals increases motivation, which increases the likelihood that those goals are met. Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives. Our professionals will work as per your needs and will come up with proper documentation of all your data which will help in making future decisions about the company.

How to Manage Bookkeeping for Catch Up?

A bookkeeper can help you get caught up and understand your financial position better. They can also catch up accounting provide support to stay on top of your collections so that you fix your small business’ cash flow issues. The first step is to gather all your receipts, and bank and credit card statements related to any business expenses for every month you have fallen behind on.

Regain Financial Control with Catch-up Bookkeeping Handbook

The chart of accounts is the backbone of your financial story – a bookkeeping skeleton. It outlines all your vital business’s financial accounts and categorizes them bookkeeping for cleaning business into assets, liabilities, income, expenses, and equity. Ensure every account is correctly labeled to sidestep confusion down the financial road. The Internal Revenue Service (IRS) mandates small and medium businesses to issue these reports, necessitating the maintenance of accurate records year-round. Keeping your books in order ensures precision in January when you fill in these forms to report various types of income, such as contractor payments (1099s) and employee wages (W-2s).

It’s not necessary to implement all the time management strategies at once. You can start with a single method, gradually incorporating others as they become habits. For example, you might begin by using the Eisenhower Matrix to prioritize tasks, and then introduce the Pomodoro Technique to enhance focus. Over time, a sustainable time management system can be built that seamlessly integrates with your workflow. This tax season doesn’t have to be as stressful as last year—take control of your time today.

• Send W9s and 1099-Miscs to contractors paid over $600, and W2s to employees.
• Late tax filings can lead to penalties, so address them as soon as possible.
• If you find yourself in a situation where a customer is not paying you can write it off as a bad debt expense.
• Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives.
• Ensure every account is correctly labeled to sidestep confusion down the financial road.
• Once you have a good picture of the timeframe that you need to get caught up in, it is time to start collecting the documents you need to do the work of catching up.
• Having a bookkeeper handle this portion of your bookkeeping can not only save you time but could save you some costs, as it would be more expensive to have your accountant manage this for you.

Yet, neglecting your financial records can lead to missed opportunities, compliance issues, and hindered growth. That’s where catch-up bookkeeping steps in—a systematic approach to updating all your financial records, ensuring they’re accurate, complete, and ready for informed decision-making. If you’re reading this article, it’s likely that you’re wanting to do everything yourself when it comes to bookkeeping and filing your taxes. When you put off bookkeeping for normal balance months, you lose track of income, business expenses, and invoices.