Cleanup guide
Keeping the Books Clean After a Cleanup
Books fall behind for structural reasons, and the fix is structural too: fewer accounts, a fixed monthly close, and somebody whose job it is.
Change the setup first
- One operating account, one tax savings account, one business card. Close the rest
- No personal spending through the business, and a set transfer to pay yourself
- Every sale deposited, and costs paid from the account, not from the till
- A W-9 collected before any contractor’s first payment
- Loan paperwork saved the day the loan is taken
- Receipts photographed when the purchase is made
Most of the work in a cleanup comes from things this list prevents. Each account closed and each habit changed takes cost out of every month that follows.
A monthly close that holds
- Categorize the month’s transactions
- Match transfers, card payments and loan payments
- Reconcile every bank, card and loan account to its statement
- Review who owes you and what you owe
- Check payroll and sales tax liabilities against what was filed and paid
- Read the profit and loss statement and the balance sheet, and ask about anything odd
- Lock the month
Done monthly, this is a small job. Left for a quarter it is three times the entries with a third of the memory. See monthly vs quarterly bookkeeping.
Five signs it is slipping again
- The last reconciliation is more than a month old
- The uncategorized balance is growing
- You are deciding things from the bank balance, not from a report
- A new account, card or loan has appeared that the bookkeeper does not know about
- A filing date passed and you are not sure it was met
Any one of these is cheap to fix in the month it appears. See also signs you need a bookkeeper.
Who does it
Books stay current when the job belongs to someone. That can be you, with a set hour each month. It can be us: our bookkeeping service covers monthly reconciliation and reporting, with payroll alongside if you need it, and the same firm preparing the return at year end.
Frequently asked questions
How often should business books be updated?
Monthly, for most businesses. Each account is reconciled once its statement is available and the month is then closed. Very small businesses can manage quarterly, but questions are harder to answer the longer they wait.
How many bank accounts should a small business have?
As few as do the job. For most, that is one operating account, one savings account for tax, and one card. Every extra account is another reconciliation each month.
Can I keep the books myself after you clean them up?
Yes. Some owners take the file back with notes on how to keep it clean, and have us review it at intervals. Others hand over the monthly work. Either is fine.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related situations and guides
Do it yourself or hire it out
Which cleanups an owner can do, which cost more to attempt, and what to ask anyone you hire.
Learn moreThe errors we find most often
Twenty-one errors that turn up in almost every cleanup, and what each does to the numbers.
Learn moreNever had real books
A spreadsheet, a shoebox or the bank balance. Building a first set of books, including past years.
Learn moreHow a cleanup works, step by step
The seven stages from first call to current books, and what each needs from you.
Learn moreCleanup Planner
Eight questions, then a plan: what comes first, what to gather, and which guides apply.
Part of Messy Books Help, alongside our catch-up bookkeeping service.
Tell us what you need
Send a short note about your situation and we’ll come back to you with a straight answer — whether that’s a quote, a next step, or a referral if it isn’t something we handle.
Prefer to talk it through first? Book a consultation and we’ll find a time, in the Easley office or virtually.
Send us the mess. We will send back a plan.
Call (864) 781-4035 or book a consultation, in the Easley office or virtually.