7 Signs Your Bookkeeping is Behind

You Don't Know How Much Money You Have

Imagine not knowing how much money is in your piggy bank! It's the same for your business. If you don't know how much cash you have right now, your bookkeeping is probably behind. You need to know this to pay bills and make smart choices.

• You guess how much money you have.
• You don't check your bank account often.
• You're not sure if you can afford new things.

You Haven't Sent Bills to Customers in a While

When you do work for someone, you send them a bill, right? If you haven't sent bills (called invoices) to your customers in weeks or months, you're not getting paid! This is a big sign your bookkeeping is behind. Sending bills on time helps you get your money faster.

• You have a pile of jobs you haven't billed for.
• Customers are asking for their bills.
• You're waiting a long time to get paid.

Your Bills Are Piling Up

Just like you send bills, other businesses send bills to you. These are for things you bought, like supplies or rent. If you have stacks of unopened bills or you're forgetting to pay them, your bookkeeping is behind. This can lead to late fees and problems with your suppliers.

• You're getting 'past due' notices.
• You're paying bills late a lot.
• You don't know who you owe money to.

You Don't Know How Much You Spent Last Month

It's important to know how much money went out of your business. This helps you see where your money is going and if you're spending too much. If you can't quickly say how much you spent on things like rent or supplies last month, your bookkeeping is behind. Good books show you your spending clearly.

• You have no idea what your biggest costs are.
• You're surprised by how much money leaves your bank.
• You can't remember what you bought last week.

You're Worried About Tax Time

Taxes can be scary if your books aren't ready. If you're already stressed about finding all your money papers for taxes, that's a huge sign your bookkeeping is behind. When your books are up-to-date, tax time is much easier and less stressful. It means all your income and costs are recorded.

• You have a shoebox full of receipts.
• You dread getting papers ready for your tax person.
• You're afraid you'll miss important tax deductions.

You're Making Money, But Your Bank Account Isn't Growing

This can be confusing! You're working hard and making sales, but your bank account balance stays low. This might mean you're spending too much, or not collecting money fast enough. Without good bookkeeping, it's a mystery. Your books help you see the full picture.

• Your sales are good, but your cash is low.
• You feel like you're always short on money.
• You can't figure out where your profit is going.

What to Do First: Catch Up!

If you see any of these signs, don't worry! The first step is to start catching up. Gather all your bank statements and receipts. Even a shoebox is a start! Then, enter all that information into a system. LedgerDude can help you with this by taking your receipts and making sure your money is counted right every month. We can even help link up to programs like QuickBooks.

• Gather all your bank and credit card statements.
• Collect all your paper and digital receipts.
• Reach out for help if it feels like too much. LedgerDude can take this off your plate!

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