What to Do If You’re Behind on Your Bookkeeping
Here we are halfway through the year. Have you been keeping up with your bookkeeping?
Falling behind on your bookkeeping happens to more small business owners than you’d think. Life gets busy, receipts pile up, and before you know it, you’re months behind. First of all—take a breath. It’s fixable. Whether you’re scrambling ahead of tax time or just want to get a clearer picture of your finances, here’s what to do if your books are behind:
1. Don’t Panic—Start with a Reality Check
Take stock of how far behind you actually are. Knowing the scope of the catch-up work will help you plan your next steps. Open up your accounting software or bank statements and figure out the last time everything was up to date.
2. Gather Your Financial Documents
You’ll need:
Bank and credit card statements
Receipts for large purchases
Loan or financing documents
Payroll reports (if applicable)
Prior tax filings
Any software or reports that track sales, invoicing, or revenue
Even if things aren’t perfectly organized, pull everything you can into one spot. If you work with a bookkeeper (or plan to), this will save a lot of time.
3. Decide Who’s Doing the Work
Are you going to tackle the catch-up bookkeeping yourself, or hire help? If it’s only a few months and your books aren’t too complex, you might be able to manage it. But if you’re behind more than a year, have multiple accounts, or need things clean for tax purposes, hiring a professional can save time, stress, and costly mistakes.
4. Rebuild Month by Month
If you’re doing it yourself, go one month at a time. Reconcile each account, categorize your income and expenses, and make sure your records match your bank statements. Don’t skip ahead—staying in order ensures your reports are accurate.
5. Communicate with Your Tax Professional
If you're catching up to prepare for tax filing, loop in your CPA early. They can tell you exactly what reports they’ll need and may offer guidance on how to structure your financials to make their job (and yours) easier.
6. Put a System in Place Moving Forward
Once you’re caught up, the real win is not falling behind again. Schedule time each month (or week) to reconcile accounts, or set up a monthly bookkeeping service to take it off your plate. Keeping up with your books regularly saves you time, money, and last-minute stress.
Need Help Catching Up?
At Just Bookkeeping, we specialize in getting your books up to date and setting you up for consistent, ongoing monthly bookkeeping. Whether you're a few months behind or it’s been a while, we’ll help you get clarity and control over your finances—so you can mind your business, not your books.
Disclaimer: This post is for informational purposes only and should not be considered financial or tax advice. Please consult your tax professional for personalized guidance.
Why Having Your Spouse Do Your Bookkeeping Might Not Be the Best Idea
When you’re running a small business, it’s natural to turn to the people closest to you for help. That’s exactly what one of our clients did. Her business was growing faster than expected, and with expenses piling up and client payments coming in, she needed someone to help keep things organized. Her husband offered to step in and manage the books—just until things “settled down.”
At first, it seemed like the perfect solution. He was good with spreadsheets, and they figured they could save money by keeping the task in-house. But as time went on, the cracks started to show. Transactions went uncategorized for months. Bank reconciliations were incomplete. And when it came time to file taxes, they had no clear reports to share with their CPA. What started as a thoughtful gesture quickly turned into a point of stress between them—and a source of tension in the business.
The truth is, bookkeeping is more than just data entry. It requires accuracy, consistency, and an understanding of how your financials tell the story of your business. And when a spouse takes it on without the proper background or systems in place, even small mistakes can compound. More importantly, it can blur the lines between personal and professional life—making it hard to have objective conversations about money, mistakes, or growth.
Eventually, this client came to us for help. We cleaned up the books, put consistent systems in place, and gave both partners peace of mind. Her husband was relieved to step out of the role, and she felt a huge weight lifted knowing her numbers were finally reliable. Their working relationship shifted back to support rather than strain.
There’s nothing wrong with accepting help from your spouse—but when it comes to bookkeeping, it’s worth considering whether a professional might be the better long-term solution. Your business deserves accurate, timely financials—and your relationship deserves a little less stress.
Labor as a Percentage of Revenue
Labor is often one of the largest expenses for small businesses—whether that’s payroll, subcontractors, or even your own time. Tracking how much of your revenue goes toward labor helps you:
Understand your profitability
Spot potential overstaffing or inefficiencies
Make informed decisions about pricing, hiring, and scaling
It’s especially important for service-based businesses, where labor drives revenue.
Calculation
Labor % = (Total Labor Costs ÷ Total Revenue) × 100
Include in Labor Costs:
Gross wages or salaries
Payroll taxes
Benefits (if applicable)
Independent contractor payments (1099s)
Example:
If your business earned $50,000 in revenue this month and you spent $20,000 on labor:
($20,000 ÷ $50,000) × 100 = 40% labor-to-revenue ratio
What’s a Good Benchmark?
Under 30% is excellent for many industries
30–50% is common for service-based businesses
Over 50% may indicate the need to evaluate efficiency, pricing, or workload balance
These ranges vary by industry, so context matters—but consistent tracking will help you identify trends and issues over time.
Summer Systems
Summer can be a busy season for some and a slower stretch for others—but either way, it often brings disruptions to routine. Between vacations, shifting schedules, and changing client needs, it’s easy for administrative tasks like bookkeeping, billing, and planning to fall behind. That’s where systems come in.
Putting a few simple systems in place can help your business stay organized and reduce stress—whether you’re working reduced hours or just trying to keep things steady.
1. Automate Recurring Tasks
Set up automations in your accounting software to handle repetitive processes:
Recurring invoices for regular clients
Bank rules for categorizing common expenses
Scheduled payment reminders to follow up on unpaid invoices
Even small automations can free up time and keep your cash flow steady.
2. Use a Cloud-Based Document Hub
If you haven’t already, move your receipts, reports, and tax documents into a shared cloud folder (like Google Drive or Dropbox). Organize by year and month so everything is easy to find—even if you’re checking in from the road.
3. Block Time for Bookkeeping
Instead of waiting until the end of the month (or summer), schedule a recurring 30–60 minute block each week to:
Reconcile transactions
Categorize expenses
Review your cash flow and outstanding invoices
Putting it on your calendar makes it more likely to happen—even during a busy week.
4. Create a Simple SOP (Standard Operating Procedure)
Document a few key workflows: how you onboard clients, send invoices, or close out each month. It doesn’t have to be fancy—a simple checklist is enough. This helps if you step away or delegate during the summer months.
5. Check In on Your Financial Goals
Halfway through the year is a great time to review your goals. Are you on track with revenue? Are expenses creeping up? Use this season to reflect, adjust your budget, or set a fresh goal for fall.
Summer doesn’t have to mean chaos or catch-up. With a few intentional systems in place, you can keep your business running smoothly—and even enjoy a little extra breathing room.
Some Small Business Deductions
Understanding what expenses are tax-deductible can help reduce your taxable income and improve year-end planning. While every business is different, here are some common deductions small business owners may be eligible for:
1. Business Meals
50% of meals with clients, vendors, or employees related to business activities may be deductible. Keep detailed records of who you met with and the business purpose.
2. Office Supplies and Equipment
Pens, paper, software, computers, and other tools used in your day-to-day operations can usually be deducted.
3. Rent or Home Office Expenses
If you rent a commercial space or qualify for a home office deduction, you may be able to deduct a portion of rent, utilities, and internet expenses.
4. Mileage and Vehicle Expenses
If you use your personal vehicle for business, you can deduct either the standard mileage rate or actual vehicle expenses—whichever provides the better deduction. A mileage log is essential.
5. Professional Services
Fees paid to accountants, bookkeepers, lawyers, consultants, and other professional services used for your business are deductible.
6. Marketing and Advertising
Expenses related to promoting your business—such as website hosting, ads, graphic design, business cards, and social media marketing—are deductible.
7. Insurance
Business insurance premiums, including liability and property insurance, are generally deductible.
8. Continuing Education and Training
Workshops, seminars, industry courses, or even books that help you maintain or improve skills related to your business can be deductible.
9. Software Subscriptions
Tools like QuickBooks Online, Canva, or project management apps used for your business may qualify.
10. Employee Wages and Contractor Payments
Wages paid to employees and payments to independent contractors (if properly documented) are deductible business expenses.
Disclaimer: This content is for informational purposes only and does not constitute tax or legal advice. Always consult your CPA or a qualified tax professional to confirm which deductions apply to your specific business and situation.
Things to remember as April approaches…
April can feel overwhelming for small business owners, but a little preparation can go a long way in reducing stress. As tax deadlines get closer, here are a few key things to keep in mind:
File Your Taxes by April 15 (or Request an Extension)
Make sure your federal (and state, if applicable) tax returns are filed on time. If you’re not ready, you can request an extension—but remember, an extension to file is not an extension to pay.Ensure Your Books Are Accurate and Complete
Double-check that all income and expenses from the prior year are recorded, reconciled, and categorized correctly. Clean books help prevent errors and missed deductions.Gather Supporting Documents
Collect receipts, invoices, bank and credit card statements, and any documentation for major expenses, charitable contributions, or deductions.Review Estimated Tax Payments
If you pay quarterly taxes, now is a good time to review what you’ve paid so far and prepare for your first 2025 estimated tax payment, which is due April 15.Plan Ahead for Next Year
Use this time to identify areas you can streamline—like setting up monthly bookkeeping or better record-keeping habits—so tax season is less stressful next year.
Disclaimer: This post is for informational purposes only and is not tax advice. Always consult with your tax professional or CPA to ensure you’re meeting your specific obligations and deadlines.
How to Make the Most of the Slow Seasons
Every business has seasons—times when everything is moving fast, and times when things slow down. It’s natural. Some months are filled with back-to-back client work, emails, and deadlines. Other times, you might find yourself with extra space in your calendar and fewer incoming inquiries. Rather than viewing the slower seasons as a setback, consider them an opportunity.
When things are quiet, you can shift your focus to the parts of your business that often get overlooked. Here are a few ideas to make the most of that time:
Organize your books – catch up on categorizing expenses, reconciling accounts, or reviewing financial reports…or meet with Just Bookkeeping to help you:)
Review your pricing or service offerings – make sure they still reflect the value you provide.
Refresh your systems – update workflows, automate repetitive tasks, or clean up your files and inbox.
Reconnect with your why – revisit your goals, plan for the next quarter, or reflect on what’s working and what’s not.
Invest in yourself – take a course, read something inspiring, or just give yourself permission to rest.
No matter the season you’re in, there’s something valuable to be found. Busy times help you grow; quiet times help you rebuild and realign. Both are part of a healthy business cycle.
New Year Habit
One thing I like to do at the start of every year is take a quick look at my business expenses—especially subscriptions. It’s amazing how easy it is to sign up for tools, apps, or software and totally forget about them. Even small charges can sneak up and add up fast.
So, I carve out 30 minutes, pull up my bank and credit card statements, and scan for anything recurring. If I’m not using it or don’t even remember what it is, it gets canceled or paused. It's a simple way to tidy things up and free up cash for things that actually matter.
This isn’t just about saving money—it’s about starting the year with more clarity and less clutter.
Tax Prep!
Once you’ve finalized your year-end bookkeeping, the next step is getting your tax documents in order. Whether you work with a CPA, tax preparer, or file taxes yourself, having clean, organized reports makes the entire process smoother—and helps you avoid delays, errors, or missed deductions.
Here’s a breakdown of the essential financial reports and documents your tax preparer will typically need:
1. Year-End Profit & Loss Statement (P&L)
Also known as an Income Statement, this report shows your total income and expenses for the year. It’s a snapshot of your business’s performance and forms the basis for calculating taxable income. Review it carefully before sharing to ensure all income and expenses are properly categorized.
2. Year-End Balance Sheet
The Balance Sheet gives a snapshot of your business’s financial position at year-end, including assets, liabilities, and equity. It’s especially important for incorporated businesses and may be required when filing certain tax forms. If something seems off—like negative bank balances or mismatched equity—flag it before filing.
3. General Ledger (if requested)
Some CPAs may ask for the full General Ledger, which is a detailed record of all financial transactions for the year. This is often used for deeper reviews, audits, or when the preparer wants to verify specific entries or accounts. You can export this directly from most accounting software platforms.
4. Supporting Documentation for Major Purchases or Deductions
If you purchased large assets (like equipment, furniture, or vehicles), be ready to provide invoices, receipts, or loan agreements. Your tax preparer may need these to calculate depreciation or verify deductibility. It’s also helpful to provide records for items like charitable contributions, home office use, or startup costs.
Providing accurate, complete financial reports helps your CPA file your return efficiently and ensures you’re getting all eligible deductions. It also reduces the risk of back-and-forth requests that can delay your filing—or worse, trigger unnecessary scrutiny from the IRS.
Disclaimer: This post is intended for informational purposes only and should not be considered legal or tax advice. Always consult your tax professional or CPA for guidance specific to your business and current IRS regulations.
Start Strong
As the new year kicks off, one of the most valuable things you can do for your business is to close out your prior year’s financials. December isn’t just the final month of the calendar—it’s your last opportunity to make sure everything is accurate, organized, and ready for tax time. Taking the time to reconcile and review your books now sets the stage for smarter decisions and a less stressful year ahead.
Here are four key steps to wrap up your December financials properly:
1. Reconcile All Accounts
Make sure all bank and credit card statements through December 31 are fully reconciled. This ensures that your books match actual account activity and that there are no missing or duplicate transactions.
2. Categorize Income and Expenses Accurately
Go through your income and expense transactions from the year to confirm everything is categorized correctly. Clean, accurate data leads to more meaningful financial reports—and fewer surprises during tax prep.
3. Review Financial Reports
Pull and review your Profit & Loss Statement and Balance Sheet for the full year. Look for anything that seems off, like unusual balances, missing expense categories, or negative numbers in the wrong places.
4. Lock the Books (If Applicable)
If your accounting software allows it, lock the books for the prior year once everything has been reviewed and finalized. This prevents accidental changes to historical data and helps maintain the integrity of your financial records.
Closing out December isn’t just about compliance—it’s about clarity. Starting the new year with clean books means you’ll be better prepared for tax filings, budgeting, and making confident business decisions.
What Small Business Owners Need to Know About 1099s for Contractors
It all begins with an idea.
If you’ve paid independent contractors in your business, January brings an important deadline you don’t want to miss: issuing 1099-NEC forms. These forms are how the IRS tracks payments to non-employees, and failing to file them correctly—or on time—can result in penalties. Understanding the basics now can save you stress and help you stay compliant.
Why 1099s Matter
1099s are part of your business’s responsibility to report income paid to others. Unlike employees, independent contractors are responsible for handling their own taxes—but you still need to let the IRS know what they were paid. If you paid a contractor $600 or more during the calendar year for services related to your business, you’re required to send them a 1099-NEC. This form ensures both the IRS and the contractor have accurate income records.
Who Gets a 1099-NEC?
You must issue a 1099-NEC to each non-employee individual or business (typically sole proprietors and partnerships) you paid at least $600 for services. Common examples include:
Freelancers and consultants
Independent contractors
Bookkeepers, graphic designers, IT support, and other service providers
Corporations generally do not receive 1099s, except in cases where they’re providing legal or medical services. To determine whether a contractor should receive a 1099, you should request a completed Form W-9 from them before or shortly after you begin working together.
Disclaimer: This post is for informational purposes only and is not legal or tax advice. Always consult with a qualified CPA or refer to the latest IRS guidance to ensure compliance with current rules and deadlines.
Tips to Set Up Your Business Financials for the New Year
It all begins with an idea.
Starting the year with clean, organized financial systems gives your business a solid foundation for everything that follows—whether it’s managing cash flow, preparing for taxes, or making confident decisions. When your income and expenses are captured accurately from the beginning, it’s easier to spot trends, stay compliant, and avoid the stress of playing catch-up later. A little time spent setting things up now can save hours of sorting, correcting, and searching down the road.
1. Separate Business and Personal Finances
Open dedicated business bank and credit card accounts if you haven’t already. Keeping business and personal finances separate is one of the most important things you can do to ensure clean, accurate bookkeeping.
2. Review and Refresh Your Chart of Accounts
Make sure your categories (e.g., income, cost of goods sold, expenses) are clear, relevant, and easy to work with. Remove old or unused categories and add any new ones needed to reflect your business activity accurately.
3. Set Up or Review Your Accounting Software
Whether you use QuickBooks Online or another platform, take time to ensure your system is properly connected to your bank and credit card accounts. Confirm rules and automations are working correctly to reduce manual work.
4. Create a Receipt Capture System
Decide how you’ll keep track of receipts—this can be through an app (like QuickBooks, Dext, or Hubdoc), a cloud storage folder organized by month, or even emailing receipts to a dedicated inbox. Choose a method you’ll consistently use.
5. Schedule a Monthly Financial Review Time
Block time on your calendar each month to review your books. This could include reconciling bank accounts, checking for uncategorized transactions, and reviewing your profit and loss report.
6. Update or Create a Budget
Start the year with a realistic monthly or quarterly budget. Comparing your actual numbers to your budget helps you stay on track and catch problems early.
7. Confirm or Renew Vendor Contracts and Subscriptions
Review any regular payments, subscriptions, or vendor agreements. Cancel anything no longer needed, and note renewal dates or upcoming changes in cost.
8. Track Mileage (If Applicable)
If you use your vehicle for business, set up a mileage tracking system now—whether through an app like MileIQ or a simple spreadsheet. You’ll save yourself a major headache later.
9. Organize Last Year’s Records
Move prior-year financials into labeled folders (physical or digital) to keep your current-year documents clean and focused. This also makes tax prep easier.
10. Back Up Your Financial Data
Ensure your accounting files, spreadsheets, and important documents are backed up securely—ideally in the cloud and on a local drive if possible.
Why It’s So Easy to Fall Behind on Bookkeeping (And What You Can Do About It)
It all begins with an idea.
If you’ve ever looked up and realized it’s been months since you’ve reconciled your accounts or categorized your expenses, you’re not alone. For many small business owners, bookkeeping is one of those tasks that quietly slips to the bottom of the to-do list. Not because it isn’t important—but because there are only so many hours in the day. When you’re busy serving clients, managing your team, and trying to grow your business, sitting down to update your books just doesn’t feel urgent… until it is. I know this firsthand—because even I, with an accounting background, fell behind on my financials when I was running my own company.
Bookkeeping is often delayed because it rarely demands immediate attention the way other business issues do. You can still operate your business with messy books—for a while. But over time, that disorganization can snowball into cash flow confusion, missed deductions, inaccurate reporting, and stressful tax seasons. Add in the complexity of managing multiple accounts, receipts, software tools, and deadlines, and it’s easy to see how even well-intentioned business owners fall behind.
If you're not ready to hire help just yet, start by setting aside a consistent time each week—even 30 minutes—to update your records. Download your bank and credit card transactions regularly, categorize your expenses, and reconcile your accounts monthly. Use tools like QuickBooks Online or Wave to stay organized and automate what you can. Keep digital folders for receipts and financial documents by month, and always back up your data. Staying consistent—even with a simple system—will go a long way in keeping your books manageable.
Welcome!
It all begins with an idea.
Welcome!
I’m Jody Boryski—founder of Just Bookkeeping. I started this firm because I’ve seen too many small business owners lose sleep over their finances, unsure if their books are accurate or if they’re missing something important. After years in corporate finance and analytics, and over a decade running my own small business, I realized I could make the biggest impact by helping other entrepreneurs gain clarity and confidence in their numbers.
Just Bookkeeping was built on the belief that financial organization leads to better decisions and less stress. With over 15 years of experience in accounting and data analysis for large organizations—and 16 years navigating the ups and downs of entrepreneurship myself—I know how vital it is to have reliable financials and a partner who understands the real-world challenges of running a business. I also teach business as an associate professor, and I bring that same educational mindset to my work—explaining the “why” behind the numbers and using tools like QuickBooks Online and Client Hub to keep things streamlined and transparent.
This blog is my way of sharing insights and support with the small business community. I’ll cover topics like cleaning up your books, understanding financial reports, and using technology to stay organized. Whether you’re just getting started or growing fast, I’m here to help you get control of your numbers—so you can stay focused on what you do best.