Behind on Your Books? Here’s What to Do (Step-by-Step)

Jul 25

Falling behind on bookkeeping happens to a lot of small business owners. Between managing day-to-day operations, supporting clients, and handling everything else that comes with running a business, the numbers can take a back seat. If you're feeling behind or unsure where to start, you're not alone! And it’s not too late to get back on track.

Here’s a step-by-step guide to help you catch up:

1. Figure Out Where You Left Off

Start by identifying how far behind you are. Ask yourself:

When were your books last updated?
Do you have all the necessary records (bank statements, receipts, invoices)?
Are there specific accounts or months that need the most attention?

This gives you a clear picture of the work ahead and helps you break it down into manageable steps.

2. Gather Your Financial Documents

You’ll need:

Bank and credit card statements
Receipts and expense documentation
Invoices (sent and received)
Payroll records, if applicable

Start by organizing these by month and account. You don’t need to get everything perfect, just make sure you have what you need to begin sorting and entering transactions.

3. Work Month by Month

Instead of trying to tackle everything at once, go one month at a time:

Record all income and expenses
Categorize each transaction properly
Reconcile your bank and credit card accounts

Working in order will help prevent errors and make things easier when it’s time to file taxes.

4. Decide If You’ll DIY or Bring in Help

If you’re comfortable with your accounting software and feel confident organizing your books yourself, that’s great. But if things feel too overwhelming or you’re worried about accuracy, hiring a professional can save time and reduce stress.

At Bay State Bookkeeping, we help small business owners in Massachusetts catch up on their books, stay organized, and keep things tax-ready.

5. Put a Simple System in Place Moving Forward

Once you're caught up, take steps to stay on track:

Set aside a regular time each week or month to review your books
Use cloud-based tools like QuickBooks Online or Xero for easier tracking
Keep receipts and invoices organized (digitally, if possible)

If bookkeeping keeps slipping through the cracks, consider monthly support to keep things up to date.

Need Help Catching Up?

You don’t have to do this alone. Whether you’re a few months behind or sorting out a full year, Bay State Bookkeeping is here to help you get organized and move forward with confidence.

Contact me at admin@baystatebookkeeping.com or call (978) 212-9839 to get started.