No Shame, No Stress: Cleaning Up Your Business Books
Messy books don’t mean you’re a bad business owner. Life as a business owner gets busy fast and often times unexpectedly so. Orders flood in, an employee quits, or family emergencies take your time. During those times your focus is all on the problem at hand and bookkeeping and accounting don’t matter. Here’s how to clean up your business books without stress or shame.
Why Messy Books Happen (and Why It’s Okay)
Common reasons your bookkeeping is behind
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Too many responsibilities
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Lack of time or bookkeeping knowledge
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Fear of making mistakes or looking foolish
Let go of the guilt
Messy books aren’t a character flaw—they’re a common business reality. While software such as Quickbooks online can help, sometimes things can get really tricky.
Why Cleaning Up Your Business Books Matters
Clear books = clear decisions
Accurate financials help you:
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Track income and expenses
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Understand cash flow
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Prepare for taxes and audits
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Qualify for loans or lines of credit
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Evaluate business decisions
How to Clean Up Your Books Step-by-Step
1. Start with one month at a time
Don’t try to fix the entire year at once. Focus on the first month then work forward.
2. Separate business and personal expenses
Use a dedicated business account to simplify tracking and reporting. (See this post to see how not doing that puts personal assets at risk.) But if you do have both personal and business transactions, go through all the transactions and mark every personal transaction as owner’s draw. For your business expenses categorize them based on the type of expense.
3. Reconcile your accounts
Compare your bookkeeping software with your bank statements to catch errors. (See this post to understand why this step can’t be skipped)
4. Fix miscategorized transactions
Review your profit and loss and reassign any that were placed in the wrong category. Some indications of possible wrong categories:
- Negative expenses or negative income
- Unexpectedly large expenditures in one expense category
- A vendor who is placed under multiple expense categories
5. Add any missing transactions
Use tools like bank feeds, receipt scanners, or emails to fill in gaps. Make sure to capture any expenses from personal accounts.
6. Set up a routine going forward
Schedule a weekly or monthly bookkeeping day to sit down and trudge through receipts. Having that schedule time forces you to do it and allows you to reap the rewards of clean books.
When to Ask a Bookkeeper for Help
If you’re:
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Overwhelmed by the amount of work
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Unsure if your reports are accurate
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Spending too much time fixing mistakes
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Dreading the bookkeeping altogether
…it may be time to bring in a professional.
Erastus Bookkeeping can help you get caught up and stay current—judgment-free.
You’re Not Alone—And You’ve Got This
Cleaning up your business books doesn’t happen overnight, but each step makes a difference. Progress > perfection.
Ready for Less Stress and More Clarity?
Book a free consultation with Erastus Bookkeeping. Whether you need a one-time cleanup or monthly support, we’re here to help you move forward with confidence. We support sole-proprietors, LLCs, partnerships, S corps, and C corps.