What is catch-up bookkeeping and how much does it cost?
Catch-up bookkeeping is the process of reconstructing and reconciling your financial records when they’ve fallen behind. Maybe you haven’t touched your books in six months. Maybe you switched accounting software and things got lost in translation. Maybe life happened and bookkeeping dropped off your priority list. Whatever the reason, catch-up bookkeeping brings everything current so you have accurate financial records again.
The work typically involves gathering bank statements, credit card records, and any receipts or documentation you have. From there, every transaction gets entered and categorized correctly, accounts get reconciled month by month, and any errors or duplicates get cleaned up. The end result is a complete picture of your business finances that you can actually trust.
Cost depends on how far behind you are and how messy things got. A business that’s three months behind with clean bank feeds and organized receipts costs less to catch up than one that’s eighteen months behind with multiple bank accounts, credit cards, and a shoebox of unorganized paperwork.
Most catch-up bookkeeping projects run between $500 and $3,000 for small businesses. Some projects cost more if you’re multiple years behind or have high transaction volume. The main factors are months behind, number of accounts to reconcile, total transaction count, and whether you have documentation available or everything needs to be reconstructed from scratch.
Hourly rates for catch-up work typically run $50 to $100 per hour depending on the provider and complexity involved. Some bookkeepers quote flat project rates after reviewing what needs to be done, which gives you more cost certainty upfront. Either approach works as long as you understand what you’re paying for.
The real cost of not doing catch-up bookkeeping is harder to quantify but often larger. You can’t file accurate taxes without accurate books. You can’t understand your actual profitability or manage cash flow effectively. You might be missing deductions or making business decisions based on guesses instead of real numbers.
Once your books are caught up, the smart move is transitioning to ongoing monthly bookkeeping so you don’t end up in the same situation again. Monthly maintenance keeps everything current and costs significantly less over time than repeated catch-up projects. Our Andover, MA advisory services can help you get caught up and stay that way, so your books become a tool for running your business instead of a source of stress.
The Merrimack Valley's Trusted Accounting Partner
The Next Step:
A 15-Minute Call
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.
More Questions
What is the cost of outsourcing payroll for a small business?
Most small businesses pay $50 to $200 per month for outsourced payroll, depending on employee count and pay frequency. Pricing typically includes a base fee plus a per-employee charge, with extras like multi-state filings adding cost.
Read answerHow often should I run payroll for my employees?
Your state determines the minimum frequency. Massachusetts requires weekly or bi-weekly payment for most employees. Within legal limits, bi-weekly is the most common choice because it balances administrative work with employee cash flow needs.
Read answerWhy are my QuickBooks accounts not reconciling?
Usually it's duplicate transactions, a wrong starting balance, or transactions dated in the wrong period. Finding the discrepancy requires checking bank feeds, comparing statement dates, and reviewing any modified transactions.
Read answerHow do I connect my bank accounts to QuickBooks?
In QuickBooks Online, go to Banking, click Link Account, and search for your bank. You'll log in with your online banking credentials, select accounts to connect, and transactions will start importing automatically.
Read answerHow do I catch up on months of neglected bookkeeping?
Gather all your bank and credit card statements, then work month by month starting with the oldest incomplete period. Bank reconciliation is your foundation. Match every transaction to what actually happened before moving forward.
Read answerHow do I import historical transactions into QuickBooks?
QuickBooks offers several import options depending on your data source and how far back you need to go. Bank feeds pull recent history automatically, while CSV imports work for older transactions. The key is proper formatting and verification after import.
Read answer
