For a while you suspected something was wrong with your book. You may have wasted hours solving problems you didn’t even understand. Finally, you turned to a bookkeeper for help. They pinpointed where it went wrong, cleaned up the mess on your books. But the big question is, does it stop there?

 

You may be wondering if you really need continuous bookkeeping going forward. You think, “I can do it myself from here on out.” Worst case is, your book will be messed up and you come back and put it away. This decision can have a significant impact on your business.

 

Having a bookkeeper isn’t just about complying with IRS regulations and keeping track of invoices. Beyond scheduling regular meetings with all clients to discuss reports and business. This not only keeps everything on track but also helps you tackle problem areas and identify opportunities.

With accurate data year-round, you have the full picture of how your business is doing. You can make key decisions to maintain stability and stimulate growth. But, if you only have your books cleaned or caught up once a year, you may not be aware of an issue in your business until it’s too late.

Nothing takes more time and stress than rushing through all your tax paperwork at the end of the year. It’s especially frustrating when you’ve spent hours sorting your own books over the past year, or working nights and weekends at the end of each month to process long to-do lists for bookkeeping.

Let’s face it, you are not an accountant. You started your business so you could do the things your best at and build something you’re proud of. Every hour spent trying to untangle data in your accounting system is an hour that could’ve gone towards the parts of your business you’re most passionate about.

 

 

What is Catch-up Bookkeeping?

 

Catch-up bookkeeping is the process of keeping financial records up to date. This necessary part of bookkeeping includes everything from analyzing bank statements to reconciling accounts receivable.

You don’t just need catch-up bookkeeping long neglected books. Instead, whenever you need to reconcile your account or migrate your data, you can use catch-up bookkeeping to ensure you’re working with the latest information. Even if the interval with a new bookkeeper is short, you still need to do a catch-up to get your new bookkeeper on the right foot.

Not only can catch-up bookkeeping give you a clearer picture of your revenue and overall financial health, but it gets your accounts receivable and accounts payable back on track. In addition, managed books make it easier to grow and help you stay compliant when tax time rolls around. Learn more about catch-up bookkeeping and when you might need it. It might be more often than you think. As we have mentioned earlier, once this process is done, does it stop there? Of course, no! That’s where continuous bookkeeping comes in.

 

Continuous/Ongoing Bookkeeping

 

Continuous bookkeeping incorporates automation, control, and period-end closing tasks into daily routines, allowing a strict bookkeeping calendar to better reflect the broader business. It’s changing the way business processes work by emphasizing real-time processing, especially skilled human resources and in-depth analysis. The result is a more efficient close, more accurate finances, and a more effective organization.

Continuous bookkeeping will consistently and accurately analyze their organizations’ financial performance in real time. It is actually the latest approach to enabling real-time financial intelligence, enabling bookkeeping teams to deliver unprecedented value to small businesses.

 

 

Benefits of Continuous Bookkeeping

 

Business Agility Improvement – By regularly reviewing and analyzing financial reports, everyone working in the company is in the same boat and working with the same fresh data. This allows the company to maintain a constant growth rate and reach all targets in less time than expected. This is so that everyone works efficiently and there are no more misunderstandings or inaccuracies.

 

Making Decisions Easy – It would be a dream if all books were always balanced and aligned. However, a “soft close” is possible with regular adjustments and a little effort. With all financials updated in real time, decision makers no longer need to spend time reporting and reconciling to get the right information to take further action. Having everyone in the company working with up-to-date financial data streamlines all business processes.

 

More Time for Analysis- Instead of spending more time writing data reports, it’s important to spend more time analyzing and validating data to make meaningful decisions. Continuous accounting greatly reduces the time to complete standardization and automation of many accounting processes. When possible financial operations are automated, the analytical process does not consist of additional creation time. After standardization, the entire procedure is consistent and errors are easier to identify.

 

Better Compliance and Auditing- Being compliant with statutory and other requirements becomes much easier for a company if fewer people are involved in the financial accounting processes. The auditors will be able to analyze the data more precisely when all the data is stored in an automated system and not in manually created spreadsheets. This is because everything is accurately connected with relevant records and transactions. An open-book audit can be a beneficial practice for any organization. Here the auditor gets read-only access to the system.

 

After my books are caught up, what’s next?

 

Once you’ve made sure the books have caught up, you’re ready to sail, right? Not too soon. Bookkeeping is not a set-and-forget process. In fact, it never ends. Therefore, having proper bookkeeping on your side is essential for continued success.

Here at Raecounting Solutions, we work with your business with the best bookkeeping team who knows your industry well. You can complete catch-up accounting for difficult records and keep everything accurate.

Catch-up bookkeeping is essential when you know your books aren’t reconciled, your payroll isn’t processed, or the tax office is knocking. It is also useful when you know you’re understaffed and receipts may have gone unnoticed. We will prepare your books for new software, and enable accurate reports and insights.

 

We are here for you!