How to
Catch Up Bookkeeping: How to Fix Months of Messy Books
Behind on your books? Here is how catch up bookkeeping works, what it costs and how long it takes.
If you have not touched your books in months, you are not unusual and you are not in trouble yet. Catch up bookkeeping is a normal project with a normal process. Here is how it works and what to expect.
Step 1: Gather the raw records
You need bank statements, credit card statements, loan statements and any receipts you still have for every month you are behind. Most banks let you download a year or more as PDFs in a few minutes.
Step 2: Rebuild month by month, oldest first
Books are built in order. Starting with the oldest month means each reconciliation lands on a correct starting balance instead of guessing. Skipping around is how errors get baked in.
Step 3: Reconcile every account
Reconciling means the ending balance in the books matches the bank statement exactly. This is the step that proves nothing is missing. If a service skips it, the books are not actually caught up.
Step 4: Clear the unknowns
Expect a list of charges nobody can identify. Answer them in one sitting while the details are fresh. A good service keeps this list short by matching receipts automatically first.
How long it takes and what it costs
A clean six month catch up usually takes one to three weeks. Cost is normally billed per month you are behind, close to the regular monthly fee. Being behind on taxes too can add penalties, so the sooner you start, the cheaper it gets.
Questions people ask
What is catch up bookkeeping?
Catch up bookkeeping is rebuilding and reconciling past months of books that were never done, so your records and tax filings are accurate and current.
How far back should I catch up?
At minimum, back to the start of the oldest tax year you have not filed. Many owners go back further to get a clean picture of the business.
How long does catch up bookkeeping take?
Around one to three weeks for six months of records, depending on how quickly you can send statements and answer questions.
Want your books handled for you?
LedgerDude is outsourced bookkeeping for small business owners. We read your receipts, match your bank transactions and send you one short list of questions each month.