Overwhelmed with Your Bookkeeping? How to Actually Find Your Way Forward!
Remember, You are Not Alone With Your Bookkeeping!
Running your business is more than a full-time job, and that means bookkeeping can easily fall behind!
Especially if you hate dealing with numbers and spreadsheets!
Here are your first four steps:
Give yourself a break; there is no need or benefit in feeling embarrassed or ashamed!
Ignoring your books will only make the problem more daunting and increase your stress and procrastination.
Taking just one small step can help create relief.
Here’s what to do next:
~ Organize what you have.
~ Understand what needs attention; and
~ Develop a manageable plan for yourself or with a professional. (We can help!)
Do Not Try to Fix Everything At Once: 5 Simple Steps
Like everything in life, bookkeeping is a process and doesn’t need to be fixed all at once!
First, identify how far behind your bookkeeping may be:
A few weeks?
Several months?
A year or longer?
Next, take a deep breath and create a list of the months that need attention. Congratulations, you now have a starting point!
Start with the oldest month because each month's number affects the next month.
Avoid opening every account, receipt, invoice, and tax document at the same time!
Focus on steady progress, not perfection. You're on a marathon, not a sprint!
Gather Your Financial Information
And keep business and personal records separate!
Start by downloading your electronic statements for your:
Business bank statements.
Business credit card statements.
Sales and payment processor reports.
Customer invoices.
Vendor bills.
Payroll reports.
Loan statements.
Receipts for major purchases.
Previous tax returns or financial reports.
Check the Most Time-Sensitive Items
Next, look for items that require your immediate attention!
Unpaid payroll or sales taxes.
Overdue vendor bills.
Uncollected customer invoices.
Missed estimated tax payments.
Unfiled tax returns or information forms.
Bank notices, penalties, or account problems.
Upcoming tax or reporting deadlines.
By addressing all outstanding deadlines and cash flow concerns first, you can prevent unnecessary fees, penalties, or strained business relationships with vendors and/or customers.
Reconcile One Month at a Time
Remember, you’re on a marathon, not a sprint, so to avoid overwhelm, address and reconcile one month at a time to ensure your books are complete and accurate.
Begin with the oldest incomplete month.
Record income and expenses for that period.
Match bookkeeping records to the bank and credit card statements.
Review any transactions that are missing, duplicated, or unfamiliar.
Confirm all loan payments, owner withdrawals, and transfers are categorized correctly.
Finish and reconcile one month before moving forward.
Person Reconciling Finances with Calculator and Receipts at Desk (Courtesy: KaboomPics/Pexels.com)
A Simple Routine to Stay Current: 6 Steps
Once your books are accurate and up-to-date, stay current by:
Scheduling a weekly financial check-in.
Uploading or filing receipts regularly.
Reviewing unpaid invoices and bills.
Reconciling accounts monthly.
Asking questions as soon as something looks unusual.
Considering ongoing monthly bookkeeping professional support to stay on track.
You're Not Alone: Ask for Professional Help!
It may be time to contact a bookkeeper if:
You are many months, or even years, behind.
Your accounts have never been reconciled.
Business and personal expenses are mixed together.
Payroll, sales tax, or tax filings are affected.
You are unsure whether your financial reports are accurate.
Overwhelm and stress are preventing you from getting started.
“We’re not here to judge how you got behind. We’re here to help you move forward.” (Steven, Piece of Mind Bookkeeping)
Bottom Line: Ask for Help!
Remember, falling behind with your books does not mean you failed!
It does mean you need a workable starting point and a plan to move your business forward effectively, keeping you on track with less frustration and stress! And if numbers aren't your thing, add a professional bookkeeper to your team (consider remote too!) for the clarity, confidence, and control that protects your business!
Are the Books for Your Business Behind?
We can help you get back on track; you’re not alone!
Remember, we are here to help you, not judge you!.
About the Author
Steven Thompson
Founder, Piece of Mind Bookkeeping
Steven brings over a decade of experience in bookkeeping, tax preparation, and financial advisory services. He specializes in helping small businesses (particularly in the pet services and veterinary space) simplify finances so they can grow with confidence.
When he’s not balancing budgets, Steven explores his adopted country, Brazil, plays with his dogs, or works on personal development, such as practicing yoga.
Connect with Steven:
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