Bookkeeping, controller, and CFO services for small businesses in Chandler and Greater Phoenix.

Call or Text: (480) 256-9894

I haven't done my books in two years—where do I even start?

First, take a breath. This is far more common than most business owners realize. You’re not the first person to let bookkeeping slide for a year or two, and the situation is completely fixable. The important thing is that you’re ready to deal with it now.

Your bank and credit card statements are where everything starts. Even if you saved zero receipts and have no records at all, your financial institutions kept a record of every transaction. Download statements for every business bank account and credit card going back the full two years. If you use online banking, most banks let you export transactions directly into a spreadsheet or accounting software. This data is the foundation for rebuilding your books.

Next, gather whatever supporting documents you do have. Tax returns you filed during that period, 1099s you received, loan documents, major invoices, and any contracts with vendors or clients. These help fill in context that bank statements alone can’t provide. A $4,200 deposit is just a number until you know which client paid it and what it was for.

Work chronologically starting from the oldest month. Going in order matters because each month’s ending balances become the next month’s starting point. Jumping around creates a mess that’s harder to untangle. For each month, categorize every transaction and reconcile the account to match the bank statement.

Two years of transactions is a big project. If your business runs a few hundred transactions per month, you could be looking at thousands of line items to categorize, review, and reconcile. Doing this yourself in QuickBooks without accounting experience often leads to misclassified expenses and errors that cause problems at tax time. This is exactly the kind of situation where working with a bookkeeper in Chandler who specializes in this work saves you real time and money.

A catch-up bookkeeping engagement typically starts with a review of what you have, followed by a month-by-month reconstruction of your books. The end result is clean, accurate financials for the full period. Your tax accountant gets what they need, you can finally see how your business actually performed, and you have a solid starting point for staying current going forward.

Once you’re caught up, the single best thing you can do is commit to monthly bookkeeping so you never end up in this position again. Two years of catch-up is always harder and more expensive than twenty-four months of staying on top of it. But right now, don’t worry about the future. Just start with those bank statements and take it one month at a time.

Bookkeeping for East Valley Small Businesses

The Next Step:
Tell Us About Your Business

Let us know where things stand with your books and what kind of help you're looking for. We'll give you an honest assessment and a clear price.

More Questions

How should a real estate investor track rental income and expenses?

Track every dollar of income and expense by individual property using dedicated business bank accounts and accounting software configured for rental portfolios. This gives you accurate per-property profitability and makes Schedule E reporting straightforward at tax time.

Read answer

When should I write off an unpaid invoice as bad debt?

It depends on your accounting method. If you use cash basis, there's usually nothing to write off because you never recorded the income. For accrual basis businesses, write off an invoice once you've exhausted reasonable collection efforts, typically after 90 to 120 days.

Read answer

What are the annual report requirements for Arizona LLCs?

Arizona LLCs are not required to file annual reports. This is one of the advantages of operating an LLC in Arizona, though there are still other compliance obligations to stay on top of.

Read answer

How far behind on my books is too far behind?

There's no point where it's too late to catch up, but the longer you wait, the harder and more expensive it gets. A few months behind is common. A year or more behind starts creating real tax and financial problems.

Read answer

What insurance costs should a contractor track separately?

Track general liability, workers' compensation, builder's risk, vehicle, and equipment insurance in separate accounts. Each one affects your books differently, and lumping them together makes it impossible to accurately cost jobs or set overhead rates for bidding.

Read answer

How do I run a profit and loss report in QuickBooks Online?

Go to Reports, search for Profit and Loss, set your date range, and click Run Report. The real value comes from customizing the report with comparison periods and the right accounting method so the numbers actually help you make decisions.

Read answer

Jackrabbit Accounting is a Chandler firm serving small businesses across the East Valley and Greater Phoenix. Led by Sean Larsen, CPA, we provide bookkeeping, controller, and fractional CFO services backed by over a decade of corporate finance and Big 4 accounting experience.

  • Intuit ProAdvisor Gold Tier badge
  • QuickBooks ProAdvisor Level 1 Certified badge
  • QuickBooks ProAdvisor Level 2 Certified badge

© 2026 Jackrabbit Accounting Services, LLC