Running a small business comes with plenty of responsibilities, and bookkeeping isn't always at the top of the list. Between looking after customers, managing staff and keeping the business running, it's easy for financial paperwork to get pushed aside.
Perhaps it's been a few weeks since you last reconciled your accounts, or maybe several months of transactions are waiting to be reviewed.
Whatever the situation, falling behind on your bookkeeping can feel overwhelming, especially when BAS deadlines are approaching or you're unsure where to begin.
The good news is that you don't have to sort everything out at once. With a clear plan and the right support, it's possible to bring your records back up to date.
Start by Working Out Where Things Stand
Before jumping into the backlog, take a moment to understand how far behind your bookkeeping actually is.
When was the last time your bank accounts were fully reconciled? Are there unpaid invoices that haven't been followed up? Have all your business expenses been recorded correctly?
You don't need to have every answer straight away. The idea is simply to identify what has been completed and what still needs attention.
Once you have a clearer picture, the task often becomes much more manageable.
Gather What You Have, Even If It's Not Perfect
One of the reasons business owners put off catching up is the thought of having to find every missing receipt or invoice before they can start.
In reality, you can begin with what you already have.
Start by gathering your bank statements, invoices, receipts and any other relevant financial records. If you're using Xero or MYOB, some of this information may already be available in your accounting software.
Don't let a few missing documents stop you from making progress. You can identify what's missing as you work through the records.
Work Through the Backlog Step by Step
Trying to fix several months of bookkeeping in one sitting can quickly become frustrating.
A more practical approach is to work through the outstanding periods systematically, starting from the last point where your records were accurate.
This usually involves reviewing transactions, matching payments to invoices, checking expenses and reconciling bank accounts.
It's also worth looking out for duplicate entries, incorrectly allocated payments or transactions that may have been recorded in the wrong period.
Taking the time to get things right is important. Rushing through the backlog just to make the numbers look complete can create more problems later.
Why You Shouldn't Ignore an Overdue BAS
Falling behind on your bookkeeping can also make it difficult to stay on top of your BAS obligations.
While it might be tempting to put an overdue Business Activity Statement (BAS) aside until your accounts are sorted, leaving it unattended can make the situation more difficult.
The Australian Taxation Office (ATO) may apply failure-to-lodge penalties for overdue activity statements. If you also have an outstanding tax debt, interest charges may apply, adding to the amount you owe.
The longer the issue remains unresolved, the harder it can become to understand your outstanding obligations and manage your cash flow.
Even if you can't afford to pay the full amount immediately, it's important to address the lodgment separately from the payment. The ATO may offer payment arrangements depending on your circumstances.
At Alexsar Bookkeeping, we're a registered BAS agent helping small businesses across North West Sydney with bookkeeping clean-ups, bank reconciliations, BAS preparation and ongoing bookkeeping support.
You Don't Have to Catch Up on Your Own
Sometimes, the hardest part of overdue bookkeeping is simply finding the time to deal with it.
If you're already busy running your business, spending your evenings reviewing old transactions and chasing missing paperwork may not be the best use of your time.
A professional bookkeeper can help assess the backlog, identify outstanding work and bring your records up to date.
Depending on your situation, you may only need assistance with a one-off clean-up rather than ongoing bookkeeping services.
And there's no need to feel embarrassed about how far behind things have become. Bookkeepers regularly work with businesses at different stages, including those that need help getting their accounts back in order.
Frequently Asked Questions
Can a bookkeeper catch up several months of overdue bookkeeping?
Yes. A bookkeeper can review outstanding transactions, reconcile accounts, identify errors and help bring your financial records up to date. The time required depends on how much work is outstanding and the condition of your records.
Do I need to organise all my receipts before contacting a bookkeeper?
No. You can start with the records you already have. A bookkeeper can help identify missing information and let you know what additional documents are needed.
Can I still lodge my BAS if I can't afford to pay it?
Yes. Lodging and paying are separate obligations. You should lodge an accurate BAS even if you're unable to pay the full amount by the due date. You may be able to arrange a payment plan with the ATO, although interest may still apply.
Can I get help with overdue bookkeeping without signing up for ongoing services?
Yes. Some bookkeeping providers, including Alexsar Bookkeeping, offer one-off clean-up assistance. This allows you to address outstanding work without necessarily committing to a monthly bookkeeping arrangement.
Getting Your Bookkeeping Back on Track
Once your bookkeeping is up to date, the next step is finding a routine that works for your business.
Whether that means setting aside regular time to review your accounts or getting ongoing professional support, keeping your records current can help prevent the same backlog from building up again.
Most importantly, you'll have a clearer picture of your business finances and one less thing sitting on your to-do list.
Need Help Catching Up?
At Alexsar Bookkeeping, we help small businesses across North West Sydney with bookkeeping clean-ups, bank reconciliations, BAS preparation and ongoing bookkeeping support.
Whether you're a few weeks or several months behind, we're happy to discuss your situation and help you work out what needs attention.
Ready to get your bookkeeping back on track?
If you've fallen behind and aren't sure where to start, we're happy to help. Contact Alexsar Bookkeeping to discuss your situation, or email us at hello@alexsar.com.au.
Related Reading: More Tips to Keep Your Bookkeeping on Track
Bank reconciliation: Bank Reconciliation Explained
BAS deadlines: BAS Due Dates: Why Lodging on Time Matters
Clear Books. Clear Direction.
