As a business owner, it can be stressful to be behind on bookkeeping. Most business owners understand that accurate bookkeeping is something that will help them reach their goals and grow their businesses. If you have fallen behind, it can quickly start to feel like you will never be able to catch back up. Catching up on your bookkeeping might require some work and effort, but it will all be worth it on the back end. Propel Your Accounting is here to share some tips to help you get your bookkeeping caught back up.
Importance of Avoiding Bookkeeping Backlogs
Believe it or not, when your bookkeeping isn’t up to date and starts to fall behind, the effects of that can be felt throughout every aspect of your business. The tax reports and deadlines start to fall behind, you lose the vision of your cash flow, you are making decisions with outdated information, and more. You will have blind spots in your business that will keep you from accomplishing your goals. The biggest problem with being behind on bookkeeping is the fact that the problems will continue to compound with time.
Tips to Catch Up on Your Bookkeeping
It can be overwhelming when you feel like you are buried under months of bookkeeping tasks that need to be caught up. Taking it one step at a time can be helpful when you’re trying to tackle this task.
– Gather Financial Data: You are going to need your financial data gathered to get started. This is going to include bank statements, invoices, payroll records, receipts, and expense reports.
– Work One at a Time: It is nearly impossible to catch everything up in one sitting. Start with the oldest month and start to work towards present day. Reconcile all of your bank accounts, credit accounts, and be sure to categorize all transactions. If you need to revisit something, make sure you are bookmarking that somehow.
– Prioritize Compliance Concerns: When you are behind on your bookkeeping, that may mean that you have missed sales tax filings, payroll tax deposits, or other compliance deadlines. You will need to handle these first and foremost.
– Check for Mistakes: If you have made mistakes along the way in the form of misclassified expenses, duplicate entries or even revenue that has been long forgotten, this is a great time to correct those mistakes.
– Create a Process: Now that you have gotten things caught back up, put some measures in place that will help you maintain it. A great way to ensure you stay caught up is to outsource your bookkeeping needs.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you struggle to keep up with your bookkeeping, you can turn to Propel Your Accounting to take that off your plate. We will ensure your bookkeeping is done accurately and in real time so that you always have the information you need. Call us today!
