Behind on Your Bookkeeping? Here's How to Get Your Books Back Under Control
It starts with one busy month.
You don't reconcile your accounts.
Then another month passes.
Transactions pile up.
Receipts accumulate.
QuickBooks starts looking increasingly confusing.
Before long, you're three, six or even twelve months behind.
If this sounds familiar, you're not alone.
More importantly:
Being behind doesn't mean you have to stay behind.
Why Business Owners Fall Behind
Most entrepreneurs didn't start their companies because they love bookkeeping.
They're focused on customers, employees, sales and operations.
Bookkeeping gets pushed to the weekend.
Then the weekend gets busy.
Eventually, the financial records become overwhelming.
The danger isn't simply having untidy books.
If your financial records aren't current, it becomes harder to understand what's happening inside your company.
Start With a Bookkeeping Cleanup
The first step is determining where things stand.
A bookkeeping cleanup may involve reviewing:
Bank accounts
Credit cards
Transaction categorization
Reconciliations
Chart of accounts
Outstanding items
Existing financial reports
QuickBooks setup
The objective is to establish financial records that are organized enough to support reliable ongoing bookkeeping and reporting.
Reconcile Your Accounts
Reconciliation is an important part of the process.
Your accounting records should be compared with bank and credit card statements so discrepancies can be identified.
Skipping this process month after month can allow errors to accumulate.
Review Your Financial Reports
Once records are updated, you can begin reviewing reports such as your profit and loss statement and balance sheet.
These reports can provide far more useful information when they're based on properly maintained financial records.
Don't Get Behind Again
Cleaning up your books solves the immediate problem.
Creating a consistent bookkeeping process helps prevent the problem from returning.
That's where ongoing monthly bookkeeping becomes valuable.
Instead of spending several weeks every year trying to reconstruct what happened, your financial records can be maintained throughout the year.
Let SBC Bookkeeping & Consulting Help You Get Back on Track
SBC Bookkeeping & Consulting provides bookkeeping cleanup along with ongoing monthly Bookkeeping & Consulting.
Depending on your business, your engagement may include transaction categorization, reconciliation, QuickBooks support, financial reporting and additional financial consulting.
The goal isn't simply to clean up yesterday's mess.
It's to create a better financial system going forward.
Whether you're three months behind, six months behind or haven't looked at QuickBooks in longer than you'd like to admit, the most important thing is to start.
Your books can be fixed.
Let's get them back under control.
Get started with SBC Bookkeeping & Consulting.