How to Catch Up on Bookkeeping Fast: A Step-by-Step Guide for Business Owners

Andrew Schliesman
Aug 6
3 min read

If you’re behind on your bookkeeping, you’re not alone. Many small business owners fall behind—whether it’s a few months or a few years. The good news? With a focused approach, you can quickly and efficiently get your financial records back on track.

Here’s how to catch up on your bookkeeping fast—without losing your mind.

Step 1: Get Organized Before You Start

Before diving into receipts and bank statements, take a moment to get your ducks in a row:

Gather all financial documents: Bank statements, credit card statements, receipts, invoices, loan documents, and payroll records.
Separate business and personal finances: If they’ve been mixed, start separating transactions now (this will save time during cleanup).
Choose your system: Are you using QuickBooks, Xero, Excel, or paper records? Get consistent with your platform before proceeding.

Step 2: Work Backwards from the Most Recent Month

Start with the most recent financial month and work backward. This helps:

Give you a clearer picture of your current financial health.
Make sure your current tax and compliance issues are under control.
Prevent duplicating or missing entries due to carryovers.

Step 3: Reconcile Bank and Credit Card Accounts

Reconciliation ensures that your books match what’s happening in real life.

Pull bank and credit card statements for each month.
Reconcile each account one at a time.
Mark each month as “done” once it balances.

Pro Tip: Utilize bank feeds in QuickBooks or your preferred accounting software to expedite data entry.

Step 4: Categorize Transactions Consistently

Go through transactions and categorize them accurately (e.g., office supplies, meals, software subscriptions). Consistency is key for:

Better financial reporting
Accurate tax deductions
Easier budgeting and forecasting

Utilize custom rules in your software to automatically categorize recurring expenses.

Step 5: Address Outstanding Invoices and Bills

Review accounts receivable: Follow up with customers who owe you money to ensure timely payment.
Review accounts payable: Make sure you’re not missing payments or overpaying vendors.
If records are incomplete, contact vendors or clients to obtain any missing invoices.

Step 6: Handle Payroll and Tax Obligations

Ensure that all payroll entries, payroll taxes, and employer obligations are recorded accurately.

Verify that withholdings match pay stubs.
File any missing payroll reports or amendments.
Record estimated tax payments and ensure they’re applied to the correct periods.

Step 7: Look for Gaps or Red Flags

Once you’ve entered and reconciled all data:

Run profit and loss, balance sheet, and cash flow statements.
Review for unusual spikes, duplicate entries, or negative balances.
Verify that there are no missing months or accounts.

Step 8: Back Up Everything Digitally

Scan paper receipts and invoices.
Store documents securely in the cloud.
Use a system like Hubdoc, Dext, or Google Drive to stay organized in the future.

Step 9: Consider Getting Help

If you’re overwhelmed or worried about accuracy:

Hire a professional bookkeeper to do a “catch-up and cleanup.”
Work with a tax advisor if you’re behind on filings.
Set up monthly bookkeeping support to stay current in the future.

Final Tip: Set a Recurring Bookkeeping Schedule

Once you’re caught up, don’t fall behind again. Schedule a weekly or monthly bookkeeping session and stick to it, just as you would any other important meeting.

Whether you’re months behind or years, the sooner you start, the easier it gets. If you'd like expert help getting caught up quickly and accurately, contact us today for a free consultation.