Your First 3 Steps to Clean Up Your Business Books
Messy books? You're not alone. Whether you’ve fallen behind, DIY’d your way into a spreadsheet nightmare, or just never had a proper system in place, the good news is: cleaning up your business books doesn’t have to be overwhelming. Here are the first 3 steps to start taking control of your finances—even if your books are months (or years) behind.
1. Get Clear on Your Business Accounts
Start by identifying every account your business touches:
- Bank accounts
- Credit cards
- Payment processors (like Stripe, PayPal, Square)
- Loans or lines of credit
- Payroll platforms
- Owner contributions or personal commingling
List them all. Even the ones you think don’t matter. It’s impossible to clean up books if you’re missing pieces of the puzzle.
Pro Tip: If you’ve used a personal account for business expenses, flag it now—you’ll need to separate those later.
2. Reconcile Your Bank Activity
You don’t need to categorize every transaction yet, but you do need to match what cleared the bank vs. what’s in your books. Start with:
- Downloading bank and credit card statements (PDF + CSV) for the past 12 months (or more, depending on your backlog).
- Checking your bookkeeping software (QuickBooks, Xero, etc.) to compare balances.
- Identifying gaps, duplicates, or uncategorized items.
Reconciliation ensures your books reflect real cash activity—not just guesses or invoices floating in limbo.
Pro Tip: If you're not using bookkeeping software yet, this is the perfect time to set it up right.
3. Categorize Transactions by Business Type
Now that you’ve gathered data and reconciled accounts, start categorizing expenses and income. Keep it high-level at first: For example:
- Contractors: Materials, subs, fuel, equipment, advertising
- Real estate investors: Rent income, utilities, CapEx, loan payments
- Service businesses: Payroll, software, marketing, owner draws
Consistent categories are key for understanding how your business is performing—and for reducing your tax liability.
Pro Tip: Avoid guessing. If you’re not sure what a transaction is, flag it and circle back. It’s better to pause than misclassify.
Bonus: Don’t Wait for Perfect—Start with Progress
Even partial cleanup is better than ignoring it altogether. Once the basics are in order, you’ll have the clarity and confidence to:
- File accurate taxes
- Apply for funding
- Make better business decisions
- Actually pay yourself without stress
Want Help? We Do Cleanups in 2–4 Weeks.
If your books feel overwhelming, you're not alone—and you don't have to figure it all out yourself. At Bookkeepers Lane, we specialize in fast, accurate cleanup projects for real estate investors, contractors, and service businesses. Ready to finally get your books in order?
Click here to get an Instant Quote or send us a message—we’ll take it from here.