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How to catch up on bookkeeping?

Start by accepting that this will take longer than you expect. The backlog didn’t happen overnight and fixing it won’t either. Most business owners who are three to six months behind need 15 to 30 hours to get current, depending on transaction volume and how messy things got.

Gather everything first. Bank statements, credit card statements, invoices, receipts, loan documents, and anything else showing money moving in or out. Download statements directly from your bank’s website rather than relying on what you think you saved. Cover the entire period you’re behind, plus one month before, so you have a clean starting point.

Work chronologically starting with bank reconciliations. Open the first month you missed and go transaction by transaction. Match deposits to customer payments or revenue sources. Match withdrawals to bills, purchases, or transfers. Don’t skip ahead to recent months just because the memory is fresher. Old errors compound and make later months harder to reconcile.

Categorize as you reconcile. Every transaction needs to land in the right expense or income category. This is where most DIY catch-up efforts slow down. A charge from Amazon could be office supplies, inventory, or something personal that slipped through. If you don’t remember what a $247 charge was for, make your best guess, flag it, and move on. Perfect categorization isn’t possible when you’re reconstructing months of activity.

Address the things that have deadlines. If you owe quarterly taxes or sales tax filings, prioritize those reconciliations first. Late filings come with penalties that keep growing while you’re working through the backlog. Get enough clarity on those periods to file what you owe, even if the rest of the books aren’t perfect yet.

Know when doing it yourself makes sense and when it doesn’t. If you’re a month or two behind with clean prior records, you can probably handle it in a few focused sessions. If you’re a year behind, or the books were wrong before the backlog started, or you have complicating factors like multiple bank accounts or job costing needs, professional help often costs less than the time you’d spend struggling through it. Bookkeeping cleanup is a distinct service for exactly this situation.

Mid-Missouri bookkeepers who specialize in catch-up work can often complete in a week what takes business owners a month of evenings and weekends. The decision comes down to what your time is worth and how confident you are that you’ll actually finish if you do it yourself.

Once you’re current, stay current. The reason most businesses fall behind is that bookkeeping feels optional until it isn’t. Monthly attention takes a fraction of the time that yearly catch-up requires. The goal isn’t just to get caught up. It’s to never be in this position again.

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More Questions

What is it called when you mix business and personal money?

It's called commingling. This happens when you pay business expenses from personal accounts, deposit business income into personal accounts, or use the same credit card for both. It creates legal, tax, and bookkeeping problems.

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Do I have to collect sales tax if I sell online in Missouri?

If your business is located in Missouri and you sell taxable products to Missouri customers, yes. Your physical presence in the state creates the obligation whether sales happen in a store or through your website.

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How many years can a business go without filing taxes?

Technically unlimited. The statute of limitations doesn't start until you file, so there's no point where unfiled returns become safe. The IRS can pursue non-filers indefinitely and penalties compound the longer you wait.

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What proof do I need for business expenses?

Keep receipts showing the amount, date, vendor, and what you bought. For meals and travel, also document the business purpose. Bank statements alone won't satisfy the IRS if you're audited.

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What are the cash flow issues in small businesses?

Cash flow problems usually come down to timing. Money goes out faster than it comes in, creating stress even when the business is profitable on paper. The underlying issue is often lack of visibility into when cash actually moves.

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What to do if a customer doesn't pay an invoice?

Follow up immediately when payment is late. Start with a friendly reminder, escalate if needed, and know when to offer payment plans or write off the balance as bad debt.

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Full-charge bookkeeping for Mid-Missouri's small businesses. We serve owners from the Lake to Jeff City and Columbia who need their numbers to be as reliable as their work. Local, certified, efficient, and precise.

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