Catch-Up4 min read
What Catch-Up Bookkeeping Includes and When You Need It
Learn what catch-up bookkeeping usually includes, how it differs from monthly bookkeeping, and when a cleanup project should happen first.
Short answer
Catch-up bookkeeping brings old months current before monthly bookkeeping begins. It usually includes statements, transaction review, categorization, reconciliation, balance sheet cleanup, and owner questions.
Checklist
- Gather bank and credit card statements.
- Import or review missing transactions.
- Categorize income and expenses.
- Reconcile accounts month by month.
- Review AR, AP, loans, owner equity, payroll, and sales tax.
- Document open questions before final reports are issued.
Common mistakes
- Starting monthly service before old months are clean.
- Skipping reconciliation to move faster.
- Ignoring balance sheet problems.
- Not asking the owner about unclear transactions.
Examples for service businesses
- A contractor behind six months may need deposits, materials, and subcontractors reviewed by job.
- A landscaper behind after busy season may need payroll, fuel, sales tax, and equipment costs cleaned up.
- A service business changing bookkeepers may need cleanup before the handoff.
Cleanup creates the starting point
Monthly bookkeeping works best after the past is current. Otherwise, old problems keep flowing into every new report.
Request a Bookkeeping Review
If your books are behind, Sabillon Advisory can review where things stand and map the cleanup work before monthly bookkeeping starts.
Request a Bookkeeping ReviewRelated resources
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