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.