When business is blooming and growing bigger each day, it’s hard to keep records of all the financial data. You might be Feeling lost in the sea of receipts, bank statements and invoices?

We know how stressful it is, But there is a solution!

It is the catch-up bookkeeping that can convert your forgotten financial records into a clear picture of the health of your business. It’s all about updating or bringing your books up to date whether you’re behind by a few months or even several years.

Just think of it-no more suffering from insomnia because of worrying about missed deductions or incorrect reports. As a result, catch-up bookkeeping is an answer to your financial concerns as this enables you to make decisions based on actual facts, rather than what may be thought about it.

Let us get into it and learn how we can become financially organized.

What is catch-up bookkeeping?

Catch-up bookkeeping is the process of getting your financial records up to date. This necessary part of bookkeeping includes everything from analyzing bank statements to reconciling your accounts receivable.

You don’t just require catch-up bookkeeping after a sustained period of neglected books. Rather, anytime you need to reconcile your accounts or migrate your data, you can use a catch-up bookkeeping service to confirm that you’re working with current information. If you have even a short period between a new bookkeeper, you’ll also want to do some catch-up bookkeeping to start your new staff member.

When do you need catch-up bookkeeping?

There are many signs that will tell you when you need to do catch-up bookkeeping.

• When you keep forgetting to update your regular transaction. If you keep missing data, it can mess up your entire financial picture.
• You can’t determine how much money is coming and going out. If that happens it’s not possible to give precise financial reporting. 
• Are you getting fined by the Tax Authority? Or tax season is near but your records are incomplete? Then it’s time for catch-up bookkeeping. 
• You are trying to prepare a final statement, but can’t do it because data is missing.
• Do you have business debt? It’s crucial for you to showcase your clear financial picture. With catch-up booking you can do it easily. 
• Are you over-spending but clueless about it? Updating your bookkeeping helps to determine where you are spending your money. 

Why is it important? 

It’s important to know the financial health of your company. Keeping specific fiancial record will give insight to business cash flow, profitability, and overall financial stability. If the business owner fails to do that then it will cause lots of issues, including: 

• Cost reduction- if you do catch-up bookkeeping then you will have a better understanding about your expenses. Eventually it will help you to reduce cost and stop you from overspending.
• Helps you to make informed decisions- a business owner can make future decisions if he is unable to determine the financial growth. With proper bookkeeping you can make better choices,  find better investment opportunities based on solid facts.
• Helps you to prepare a budget- whether your business is small or large budgeting is an important task. With catch-up bookkeeping you can make better budgets for your company. 
• Better financial management- your financial management will be greater with catch-up bookkeeping. Your business will thrive and grow faster. 
• Auditing and Tax will be easier – your auditor can complete his task faster if you can provide necessary documentation and keep an organized record. When tax season rolls around, keeping your books up to date and detailed makes filing your taxes a lot easier.

The Process of Catch-Up Bookkeeping

Catch-up bookkeeping can be overwhelming for some, especially if you miss lost too much financial data. But it’s never too late to start. With a systematic approach you can manage to get back on track. Here is how: 

• Sort and manage your financial record- this is the first and easy step. Start collecting all your invoices and receipts. You need to ensure that all of these transactions are written correctly and don’t forget to double-check. 
• Gather All Financial Documents: collect all the relevant documentation like bank statements, including receipts, invoices and other financial documents. Sort them accordingly to facilitate the reconciliation process. 
• Reconcile bank account- reconciliation is very important to catch up on bookkeeping. It will help to find out any inconsistency in data entry or missed transactions. 
• Separate business and personal transactions– if you don’t separate bank accounts for business and personal expenses it will mess up which expenses personal or professional.
• Evaluate payable and receivable- regularly checking accounts payable and accounts receivable crucial for your business to run smoothly. You can spot inconsistency as well as you can avoid overdue bills and reduce the risk of late payment.
• Use accounting software- there are many useful software like QuickBooks, Zipbooks, xero or fresh books that can help you to do catch up bookkeeping. 
• Create a schedule for bookkeeping- it’s very important to make sure that you never forget to do bookkeeping. Make a schedule to prevent future backlogs.
• Hire a professional bookkeeper- you can do the bookkeeping by yourself but it’s always wise to hire a professional bookkeeper. Is there professional they will not make any mistake

Frequently Asked Questions- FAQ

What is catch-up bookkeeping? 

Catch-up booking is a process where you update and organize your financial transaction  you forgot to do. It’s also called bookkeeping cleanup. 

How often do I need to do catch up bookkeeping? 

You should do it when you realize that you have to record transactions. Can create a schedule and regularly update your financial record it can be weekly or monthly. 

Which bookkeeping software should I use? 

There are many softwares which you can use for bookkeeping apps like zero freshbook QuickBooks sage zip books are helpful.

What kind of documents do I need for catch-up bookkeeping? 

For catch- up bookkeeping you need a bank statement, invoice, receipts or any kind of financial data.

What will happen if I don’t do catch-up bookkeeping ? 

If you don’t record your financial transaction it will be hard to do financial management, difficulties in business audit, difficulties in tax season, problems in budget making. All this problem can lead to incorrect decision making. 

Do I need to hire a professional or should I do it by myself?

If you are a small business owner you can do the ketchup bookkeeping by yourself. But there is always room for error so it’s better to hire professionals who know what they are doing.