The cleanup process and checklist goes like this...

• Collect all business-related financial transactions - We'll work with you to get everything financial-related that you need to run your business in one location. Typically this involves bank statements, loan balances, invoices, debts, property records, payroll information and potentially a lot more. Don't worry, we'll help you figure out what is needed and how to get it.
• Categorize Transactions: BookSense works with you to create transaction categories that can be easily continued as your business continues. Having transactions categorized efficiently and logically not only help you and your company keep track of where money is coming from and going to, it also streamlines your process when applying for financial loans or, more importantly, come tax time. 
• Reconcile Bank Statements: This is where the heavy lifting begins. We'll go through all of your bank statements, recording transactions in the software, comparing what you have down with what should be there and helping you figure out why things don't match up. In many ways this is kind of like detective work and, truth be told, part of the fun for us. Yeah, we may be a little weird like that. When completed, the balance in your bank account and the balance in your accounting system should be the same. And remember the categorization we did earlier? That's going to help you keep it the same moving forward.
• Identify Errors and Discrepancies: This is one of the biggest and most time-consuming parts of the process. While it could be considered a part of reconciling bank statements, errors can exist in all sorts of other places. Tracking down the correct information or finding out where the transaction was actually categorized can be quite time consuming. That being said, some have said it's like running a marathon or levelling up in a videogame - once you're done, you feel amazing. And yes, we feel that way, too..
• Adjusting Entries: If reconciling bank statements was the heavy lifting, this is where we get down in the dirt. Going back through and adjusting entries is needed to make sure of the accuracy of your company's financial statements. Amortization, depreciation, accruals - these all need to be tracked, calculated and adjusted Since some (or many) of these might not have been done and it is often a time-consuming headache for small and medium-sized businesses, many businesses will reach out to professionals when they get to this point. Unfortunately, since bookkeepers need to sign off on their own work, we often have to start back at the beginning of the cleanup process to make sure everything is done correctly.
• Prepare Financial Statements: Once everything is tracked, categorized, reconciled, identify, adjusted and cleaned up, then it's time for preparing financial statements. This is the last stretch before the finish line and one that needs to be done carefully to prevent any mistakes that could crop up in the future. Once everything is prepared, these financial statements, including a balance sheet, income statement, cash flow statement and more, will be used as the financial basis of your business moving forward. See, we kinda need to make sure these are right. Luckily, we're good at what we do and have a long list of satisfied clients to back up what we say..

Setting up bookkeeping for a startup involves several essential steps to ensure accurate financial records from the beginning. Here's a breakdown:

• Choose a Bookkeeping System: Decide whether you'll use software or manual methods. Software options like QuickBooks Online and Wave are popular for startups due to their ease of use and features.
• Set up Accounts: Create all the accounts you'll use to classify your transactions, then create your checking, savings, and possibly your business credit card accounts. These customized accounts are different and created to fit your specific business needs.

If you waited to start bookkeeping and need to backdate your books, we will help you with the essential steps to ensure accurate backdated financial records, and moving forward. Backdated Startups include these steps and the steps listed above in Setups:

• Record and Categorize Financial Transactions: Enter all transactions into your chosen system regularly and assign each transaction to the appropriate account. Categorizing accurately is crucial for generating financial reports and analyzing your business's performance. This includes sales, expenses, loans, and investments.
• Reconcile Accounts: Reconcile your bank and credit card statements with your bookkeeping records to ensure accuracy and identify any discrepancies.
• Assist with establishing a Filing System: Create procedures for keeping all financial documents organized and easily accessible. This includes invoices, receipts, contracts, and any other relevant paperwork.
• Set Up Payroll (if applicable): If you have employees, set up a payroll system to ensure accurate payment of wages and compliance with tax regulations.
• Review Financial Reports: Generate and deliver financial reports like income statements, balance sheets, and cash flow statements. These reports provide insights into your business's financial health and help you make informed decisions.

While these are listed separately here, each case is unique. Cleanups, Setups and Backdated Startups often have overlapping features, depending on the business and situation. Contact us today to discuss your unique situation.