What Is Catch-Up Bookkeeping?

Regular bookkeeping means knowing where your money is going every month. It will help you spot trends in expenses (e.g., if you’re spending too much on office supplies) and opportunities for savings (e.g., maybe that new printer isn’t really needed). It will also help you see where your business could go in the future. While bookkeeping is necessary and vital, sometimes, things fall through the cracks. If you’re looking to get your company’s books caught up, a bookkeeper can help.

What Is Catch-Up Bookkeeping?

In basic terms, catch-up bookkeeping is updating your finance and accounting books so they are ready for year-end taxes, reports, and filings. Catch-up bookkeeping is crucial because it paints an accurate picture of how your business is doing and allows you to make sound business decisions.

Catch-up bookkeeping is the process of reconciling the books to the actual financial statements. It can be done in a few months or years, depending on how out of balance your books are and how quickly you want to get them back up to date. The catch-up phase often involves reviewing the financial statements and adjusting the books accordingly.

The Risks Of Outdated Bookkeeping:

Lack of visibility. If you’re not keeping track of your business finances, it’s hard to know where you stand. You might not notice when a customer has been slow to pay or when an employee has gone rogue with their expenses.

Inaccurate financial reports. Without accurate records, it’s tough to produce accurate financial reports. If you don’t know how much money you have in the bank or where it went, it will be difficult to forecast future profits and losses and make smart business decisions based on that information.

Noncompliance issues. If you don’t have current books and records for your business — particularly if you have employees — you could be in trouble with regulators and other authorities who require proof of compliance with certain regulations (such as payroll taxes).

How Much Does Catch-Up Bookkeeping Cost?

Catch-up bookkeeping costs vary depending on several factors, including the size of your business. The larger the company, the more complex it can be to keep track of all the transactions that happen in a year. Smaller companies generally have less complicated accounting systems and cost less.

Which Records And Documents Do I Need To Supply?

As a small business owner, you’re responsible for maintaining records and documents supporting all the financial transactions that occur in your company. If you have an accountant or bookkeeper on staff, it can be a good idea to supply them with all of your financial records for the past year. This ensures they have everything they need to keep accurate monthly books.

How Long Will It Take To Complete My Catch-Up Bookkeeping?

The amount of time it takes to complete your catch-up bookkeeping will depend on the size and complexity of your business, as well as how much time you have available.

If you’re only looking to catch up on a few months’ worth of records, then it could take a couple of weeks if you have someone available who knows what they’re doing. However, if there has been a lot happening since the last time your books were kept up-to-date and accurate—such as hiring new staff or expanding into new markets—then it’s likely that more than just a few months worth of data needs to be reviewed and updated. In this case, expect your catch-up bookkeeping to take several months to complete!

Should I Choose A Bookkeeper Or An Accountant?

When choosing between an accountant and bookkeeper, consider that:

Accountants are usually more expensive

Bookkeepers are usually cheaper

Bookkeepers may have more experience with small businesses

The best way to get your books caught up is to hire a qualified and experienced bookkeeper.

A qualified and experienced bookkeeper can help you get your books caught up quickly, for less money than an accountant, and in a way that is tailored to your business.

Conclusion

There are many reasons why people need catch-up bookkeeping. If your books are in disarray, then you may be at risk of being audited by the IRS. Having your records in order can also help you avoid paying unnecessary fines and penalties. If you have just started a business and have no idea where to start with organizing your financial records, then hiring an experienced bookkeeper may be the best option for you. Running a small business is hard, so don’t make things more difficult by falling behind on bookkeeping. At Kurv Business, we make it possible for you to hire expert bookkeepers at a price you feel good about. Learn more about us here.