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
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More Questions
How much does outsourced bookkeeping cost for a small business?
Outsourced bookkeeping for a small business typically runs $200 to $600 per month for core services. The actual cost depends on your transaction volume, industry complexity, and which services you need beyond basic reconciliation.
Read answerWhy do contractors need specialized bookkeeping?
Contractor finances revolve around individual projects, not just monthly totals. Generic bookkeeping misses job costing, progress billing, retainage, and WIP tracking, which are the numbers contractors actually need to run their business.
Read answerShould a Chandler small business use a local or national bookkeeper?
The real question isn't geography. It's whether your bookkeeper understands your industry, communicates well, and delivers financials that help you run your business. That said, local bookkeepers have some genuine advantages.
Read answerWhat does a QuickBooks ProAdvisor do?
A QuickBooks ProAdvisor is certified by Intuit to set up, configure, troubleshoot, and optimize QuickBooks for businesses. They go beyond basic data entry to make sure the software actually works for your specific situation.
Read answerWhat bookkeeping does a trucking or logistics company need?
Trucking companies need bookkeeping that tracks fuel costs, equipment, driver pay, and per-load profitability. Standard small business bookkeeping doesn't cover IFTA reporting, cost-per-mile analysis, or the receivables delays common in freight.
Read answerDo I need a local bookkeeper or can I use someone remote?
Either can work. Modern bookkeeping runs through cloud-based tools, so location isn't a technical barrier. But a local bookkeeper brings advantages like familiarity with Arizona tax requirements and the ability to meet in person when it matters.
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