How to Bookkeep: Catch-Up Bookkeeping: Clean-Up Years’ Worth of Work Quickly!

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Reading Time: 3 minutes

Catch-up bookkeeping becomes essential when you know your accounting is a mess. However, don’t be a firm that just accepts that as their fate. Handling
financials and messiness aren’t mutually inclusive.
What’s more, we’d ask that you don’t consider a broken system as a fact of
bookkeeping. After all, every time you look at it, it adds to your stress. In addition to that, it is going to limit the opportunities for business success. Finally, you waste more time and spend money on keeping such a system functional.


Determine the Presence of a Mess before Playing Catch-Up
Bookkeeping


Before guidance on how to do a years’ worth of bookkeeping in one day,
determine if there even is a mess. Don’t know which indicators to look at? Try these:
Even the thought of contacting your tax preparer leaves you in tears – and
vice versa.

A stack of paper and receipts sits permanently on your desk


Pulling a Profit and Loss statement is like pulling teeth


Both your practice management/invoice and accounting systems work
separately


Double-entry for transactions are the norm


Prioritize the Fixing


Catch-up bookkeeping becomes necessary for a business if:

You Have a Costly Mess

We have unearthed dozens of unpaid invoices when working with our clients. They fall through the cracks. Consequently, the business keeps losing money. There’s another way this mess could be harming your business. At tax time, you are sorting things out so you miss out on strategic advice that can benefit you. In addition to those disadvantages, here’s one more. A lack of insight will prevent you from determining which part of your business is doing better than the others. Also, you won’t be able to see margins. Hence, making informed decisions that build your business up becomes almost impossible!
The Mess Turns into a Risk
You could be putting your firm at an increased risk of the mishandling of funds. Trust accounting is never smart. You could also be falsely reporting revenue albeit unknowingly.


Getting Down to the Fixing via Catch-Up Bookkeeping
Essentially, these steps outline the process of catch-up bookkeeping:


Target the Accounting System
The system is like a house. You build it on the sand, and it will take your business down. But if you rebuild it after wiping the transactions slate clean, you can get out of the quagmire.


Grab your Tools


Most attorneys prefer practice management systems. Internet-based
entrepreneurs, on the other hand, work best with invoicing systems. You should be comfortable with your new accounting software. For a comprehensive
financial system, integrate both.

Create a Chart of Accounts


This structure lists your business’ accounts. So, it will be immensely helpful in booking transactions to the proper accounts.
Regularly Reconcile for Seamless Catch-Up Bookkeeping
Next, categorize everywhere a transaction takes place. For example, bills will require reconciliation with expense accounts first. Then you must tie them to receipts. Payments should be associated with a revenue account and
invoice. You’ll find both expense and revenue accounts in the chart you set up beforehand. What does regular reconciling do? It provides you with real-time financial reports and information. Those will be instrumental in guiding your business. Besides that, receiving reports at the click of a button will make tax season infinitely easier too.


Know When to Ask for Directions


Most importantly, recognize when it is time to stop attempting reconciling
transactions yourself. We aren’t just old hands at this. AKIF CPA will also quote you a highly reasonable catch-up bookkeeping price.
Briefly, we begin with a QBO Diagnostic. This is an in-depth review that can help us diagnose your transactional problems. After that, you get a report of our expert findings. Next, our team works on your QuickBooks. In the end, you get the true picture of your financials and squeaky clean books. So, contact us now!

 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Akif CPA will not be held liable for any problems that arise from the usage of the information provided on this page.

Leave a Reply

Your email address will not be published. Required fields are marked *

Client Reviews
AKIF CPA
5.0
Based on 95 reviews
powered by Google
Ammoria Daniels
Ammoria Daniels
02:11 16 Sep 21
We contacted Akif with an urgent matter regarding corporate taxes. Akif immediately understood what was needed and... within days had everything ready to sign. The level of service we received was amazing and unmatched. Waqar expertise in trucking industry made our situation seamless. His communication was outstanding; I heard from him daily and could have been completed sooner if I was as fast as he was 😃 Highly recommended!read more
Joe Paneitz
Joe Paneitz
18:30 18 Aug 21
What an absolute pleasure to work with this CPA firm. My business is already seeing such a positive impact and growth.... I cannot believe I didn't connect with them sooner. This firm is helping in so many ways! 5 stars is an understatement! Thank you so much for your help AKIF CPAread more
Helptest ARCpoint Labs
Helptest ARCpoint Labs
15:02 18 Aug 21
The firm is quick, responsive, and has the latest technological software. Thus far, I have been with them for 3+ years... and will continue to work with them even after relocating. They make it easy even when I'm miles away. Would highly recommend them.read more
Luz Tipaz
Luz Tipaz
16:06 13 Jul 21
Saim and his team are the best CPAs in town. I have been their client for years. All started when I needed help with... company structure with multiple companies and then accounting and Taxes. I have been very happy ever since. Thank you AKIF CPA.read more
Maria perez
Maria perez
18:31 08 Jun 21
Me and my husband have been getting all of our personal Taxes, business Taxes, monthly bookkeeping, accounting and... payroll done with AKIF CPA. Recently, we had more stuff come up and had detailed analysis done on capital gains, single family rentals (SFR) and business disposition. You will only know how great this CPA company is until you have worked with them and given them a chance. Words can’t describe our experience. AKIF CPA gets the job done every time - very reliable, professional and affordable.read more
Afnaan Amin
Afnaan Amin
22:14 02 Jun 21
Very good experience, we had unique situation in regards to cross border income as Canadians currently residing in the... US. Income on both sides of the border through completely different channels. Everything was very easy and completed timely, I also had lots of random questions and Mohammad provided top notch service along the way and even after we finished our taxes!! Highly recommended.read more
Ryan Paton
Ryan Paton
10:56 08 May 21
I moved to the USA from Canada late 2018 as part of a promotion/relocation for work. For my 2019 returns, I used an... accounting firm recommended by the local Canadian social club in my city, which was a terrible experience. They were slow to respond to inquiries and would follow up in piecemeal requests which dragged out my return process over several months, often asking for information I had already provided.For the price I paid, I vowed to find better service. I found Mohammad online and decided to reach out. Mohammad was extremely responsive, took care of my US and Canadian returns as well as my wife's business returns in a timely manner. Overall, it was a very positive experience and I would recommend him to another in my situation.read more
Tuan Vo
Tuan Vo
01:59 20 Apr 21
I relocated to Texas from Alberta, Canada and needed a CPA to help me with my cross-border taxes as I was not happy... with the CPA that I used previously. During my interviewing process to find another CPA, I had good feedback from Mohammad as he was able to answer my questions regarding my unique tax situation with expertise, and importantly to me, in a timely manner. I decided to use his services for the current tax year and I have nothing but compliments for the work Mohammad provided. If you are in need of a professional cross-border CPA, I highly recommend reaching out to Mohammad Akif.read more
See All Reviews