Bookkeeping Catch-up Services for Small Business Owners in Houston
Bookkeeping catch-up services – also termed clean up bookkeeping – are a specialized set of bookkeeping services designed to help small business owners bring their financial records up to date and ensure compliance with tax and financial reporting laws.
As the term suggests, bookkeeping catch-up services are for Houston businesses that have, for whatever reason, fallen behind on tracking their financial transactions and accounts. As a company’s ledger slips further and further behind, it can cause serious challenges for the organization, including:
- Cash flow problems
- Lack of financial reporting transparency
- Inability to strategize and time purchases or hiring
- Delays in resolving invoices and accounts receivable
- Poor tax compliance and expensive tax-related mistakes
- An elevated risk of internal fraud
Small business owners in Houston already face numerous challenges, which is why only one out of three will survive for 10 years. Delinquent accounting adds another obstacle to growth and profitability, but bookkeeping catch-up services can clarify a company’s financial picture.
Signs That a Houston Business Needs Bookkeeping Catch-up Services
Companies of all sizes and in all industries require accurate accounting and bookkeeping to ensure operational efficiency. However, due to a lack of personnel or financial tracking tools, it’s common for small business owners to fall behind on their bookkeeping. Signs that bookkeeping catch-up services are needed include:
You have a steadily growing pile of unresolved transactions
Receipts and invoices are taking too long to reconcile and records may be lost.
Cash flow problems never seem to go away
Bookkeeping inefficiencies make it impossible for business owners to forecast cash flows and optimize operational, personnel and marketing decisions.
Your business cannot develop accurate financial records
With zero financial transparency, it will be impossible to maintain tax compliance or attract investors.
Your company is consistently receiving late payments from customers
If bookkeeping falls behind, so will invoice tracking for your company’s accounts receivable. As such, clients may be delinquent in their payments without you realizing it.
Your company’s expenses are out of control
A company’s operational efficiency relies on its purchasing and inventory management efficiency. Without a clear budget to guide purchasing or hiring decisions, your organizations will have a much higher likelihood of budget overruns.
There’s no coherent tax strategy in place
Tax compliance and tax planning strategies – such as leveraging tax deductions and credits – cannot be prioritized without accurate bookkeeping in place. Your company will miss out on tax savings it would have otherwise taken advantage of.
You’re spending too much time and effort on bookkeeping
If you’re consistently feeling overwhelmed by tracking your company’s financial information, you’re not alone. However, this is also a sign that your bookkeeping processes are inefficient and causing your organization to fall behind.
If any of the above signs are present in your business, consider scheduling a consultation with a reputable bookkeeping service to determine how bookkeeping catch-up services can benefit your organization.
What Do Bookkeeping Catch-Up Services Include?
Every company’s financial situation is different and therefore there isn’t a single set of bookkeeping services appropriate for every organization. However, in general an experienced accountant will be able to do the following for companies that require bookkeeping catch-up services:
- Transaction and account reconciliation – During reconciliation, your accountant will review the financial documentation you do have and compare it to activity in your business accounts. The goal is to ensure all financial activity is tracked and accounted for, so to speak.
- Financial sheet preparation – Businesses require accurate and transparent financial sheets – balance, income and cash flow – to ensure compliance with tax agencies and to secure additional funds from investors. These financial sheets are also essential for guiding strategic decisions. Your bookkeeping service will gather the financial documentation required to prepare these sheets and provide needed transparency.
- Identifying and resolving bookkeeping errors – Unexpected or unusual cash flow problems may be due to financial reporting errors or fraud. Your accountant will be able to review your company’s financial documentation to spot any bookkeeping mistakes that could be causing cash flow, asset management or fraud-related issues.
- Organizing bookkeeping processes for future compliance – Retaining a trustworthy bookkeeping service will keep your organization’s bookkeeping on track and can also help establish better accounting processes to prevent future bookkeeping delinquencies. This could be as simple as streamlining the record-keeping and reconciliation processes, or as complex as onboarding a new piece of accounting software and configuring it for a client.
- Verify tax compliance and establish tax strategies – Lax bookkeeping frequently leads to tax problems. Catch-up bookkeeping services involve reviewing transactions for their tax impacts, and they will know if your company is behind on tax compliance and owes additional taxes.
A bookkeeping service that also provides tax planning services can take a long-range view of a company’s tax picture and anticipate what operational decisions a business should make to minimize its tax burden.
An Expert Bookkeeping Catch-Up Service Will Help Establish Future Bookkeeping Practices
Bookkeeping is an important part of running a business, and an experienced business accountant can guarantee accurate, comprehensive catch-up bookkeeping services. Beyond that, they can help establish better accounting practices, and some are also qualified to provide advanced tax and financial planning services. With a full range of bookkeeping, financial and tax services, Evident Pros can position a small Houston business owner optimally going forward.
