What's the difference between catch-up bookkeeping and cleanup bookkeeping?
The terms get used interchangeably, and the distinction isn’t always clear-cut. But there is a meaningful difference between the two.
Catch-up bookkeeping addresses a time gap. Your books stopped being maintained at some point, and now you need to record everything that’s happened since then. Maybe you got busy and let things slide for six months. Maybe you changed bookkeepers and there was a gap in coverage. Maybe tax season caught you off guard and you realized nothing has been entered since last spring. The work involves going back through bank statements, credit card records, invoices, and receipts to record transactions that never made it into your accounting system.
Cleanup bookkeeping addresses a quality problem. The books have been maintained, but they’re a mess. Transactions are miscategorized. Bank accounts don’t reconcile. There are duplicate entries or missing entries. Accounts payable shows vendors you paid off months ago. The numbers in your accounting software don’t match reality. This happens when someone without bookkeeping experience has been entering things, when software was set up incorrectly, or when shortcuts got taken for too long. Many small businesses looking for bookkeeping help in Richmond find themselves dealing with cleanup issues they didn’t even know they had.
In practice, many businesses need both. You might be three months behind and discover that the previous twelve months were categorized incorrectly. The work blends together.
What matters more than the terminology is understanding the scope of the problem. A bookkeeper needs to know whether they’re dealing with missing data, bad data, or both. That determines how much work is involved and what the timeline looks like. If your books are behind or you suspect there are errors, don’t worry too much about which label applies. Catch-up bookkeeping often includes cleanup work as part of the process, and any experienced bookkeeper will tell you exactly what needs to happen after looking at your situation.
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More Questions
Will I get in trouble with the IRS for falling behind on my books?
Falling behind on bookkeeping itself doesn't trigger IRS penalties. The problem is what happens next. Messy books lead to inaccurate tax returns, missed deductions, and late filings. Those are what create real trouble.
Read answerWhat does it mean to reconcile my accounts?
Reconciling means comparing what your bank statement shows against what your accounting software shows, then fixing any differences. It confirms your books match reality.
Read answerCan you help me migrate from QuickBooks Desktop to QuickBooks Online?
Yes, we regularly help businesses migrate from Desktop to Online. The process involves transferring your data, cleaning up historical entries, and getting you comfortable with the new system.
Read answerHow do I track tip income and tip-outs for my restaurant?
Track tips daily using your POS system or a written tip log, record all tip-outs to support staff, and run tips through payroll since they're taxable wages. Both credit card and cash tips need documentation.
Read answerWhich QuickBooks plan is right for my small business?
The right plan depends on user count, inventory needs, and whether you track project costs. Most small businesses do fine with Simple Start or Essentials. Plus is worth it only if you manage inventory or need job-level profitability.
Read answerHow do I record daily sales from my POS system in QuickBooks?
Record a daily sales summary from your POS end-of-day report rather than individual transactions. Break out payment types and use a clearing account for credit card sales to match deposits when they arrive.
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