Catch-Up Bookkeeping: A Comprehensive Guide

The company may also be obliged to file back taxes with the BIR or submit reports or other filings to the SEC or LGU. Catch up accounting can be a crucial activity for any start-up, SME or long-standing company that has issues within their accounting, bookkeeping, compliance or reporting functions. Maintaining your books up to date is not just about compliance, but it also aids in better financial control, timely tax submissions, and identifying potential tax deductions. However, it’s important to note that your bookkeeper won’t be the only person working on your business finances. So you’ll want to understand which tasks your bookkeeper is and isn’t responsible for handling.

When it happens to you, catch-up bookkeeping can feel like horror, especially if you have lost receipts, reconciliation discrepancies, or a visit from the Canada Revenue Agency. Let us handle your overdue books, and you’ll get a tidy Year End Financial Package for every year we complete–so catch up bookkeeping you can get filed fast. Wherever your bookkeeping is at, we’ll do your overdue books with total accuracy—fast. Well, the truth is, it doesn’t take long for your books to fall behind when your business grows exponentially, which can lead to non-compliance with the IRS.

Categorize Transactions

Tax season can be a nightmare if you don’t keep up with your bookkeeping. This is because you’ll need to gather your financial information and organize it before filing your taxes. If you’re not prepared, this can lead to costly mistakes, such as overpaying or underpaying your taxes.

• Today, we’re proud to say that we swept all the cobwebs out of his financial records, and his desk is no longer a graveyard for misplaced receipts.
• It’s unlikely that you’ll be able to find the time to perform catch-up duties, at least not with the speed and accuracy your business deserves.
• However, it’s important to note that your bookkeeper won’t be the only person working on your business finances.
• However, it’s generally more practical for an outsourced accounting firm to do the job as it allows the in-house accounting team to focus on the current year accounts.
• However, it is important to know the limitations of catch-up bookkeeping and consult a professional bookkeeper if you have any questions or concerns.
• Next, contact any vendors or clients you have done business with over the past year.
• Collect the receipts from every business purchases you have made during the tax year.

His bank statements were unreconciled, and peppered with unmatched transactions. It took some hard work to pull him out of the grave he’d dug for himself, but together we managed to weather the storm. Getting ready to do bookkeeping cleanup sounds intimidating, but can be done effectively by systematically working through these steps to gather the information you need. Once you’ve cleaned your bookkeeping, your business will be better prepared for growth, tax season, and investment opportunities. See why thousands of small business owners just like you made the switch to Bench. From bookkeeping to tax filing, Bench is the all-in-one financial toolkit your business can count on.

Best Accounting Software for Small Businesses

Now, let’s discuss some tools and resources that will help you with catch-up bookkeeping. Save time, reduce error, and avoid fraud with Redmond Accounting Inc. Once everything is back in order, make it a point to implement systems that prevent future backlog and the need for bookkeeping clean-up. During this step, the bookkeeper will touch base with you on any questions they have that only you or someone in your organization can answer. Business owners have to-do lists that are miles long, and bookkeeping often falls by the wayside. To make matters worse, many owners underestimate the complexity of bookkeeping.