What to Do When You Fall Behind on Bookkeeping

william8192
Sep 5
2 min read

It happens. One missed month turns into two, and before you know it, your books are a mess. If you’ve fallen behind on your bookkeeping, you’re not alone—and it’s fixable.

Here’s how Canadian entrepreneurs and Indigenous business leaders can get caught up and stay that way.

First: Don’t Panic or Ignore It

Avoiding your books only makes it worse. Late bookkeeping can lead to:

Missed tax deadlines
Incorrect GST/HST filings
Inaccurate cash flow or grant reporting

But the good news? Cleanup is possible, and automation can help prevent future backlogs.

Step 1: Collect What You Have

Start with these essentials:

Bank and credit card statements
Receipts and invoices (even in emails or shoeboxes)
Any spreadsheets or apps you’ve been using

Even partial data is a good place to begin. You can fill in the gaps later with help from a bookkeeper or tools like Hubdoc and Dext.

Step 2: Catch Up Month by Month

Work backward, one month at a time:

Reconcile accounts to ensure accuracy
Categorize income and expenses
Mark completed months to track progress

Many businesses choose to hire help here—Clearbook Ledgers offers bookkeeping cleanup services that restore financial clarity.

Step 3: File What’s Overdue

Once your records are in order, check for:

Unfiled GST/HST returns
Missed payroll remittances
Year-end tax slips (T4s, T5s, etc.)

Avoid penalties by submitting as soon as possible—and be transparent with the CRA or funding agencies if you're behind.

Step 4: Build a New Habit

To avoid falling behind again:

Use cloud software with real-time bank feeds
Block 30–60 minutes monthly for reconciliation
Upload receipts on the go with mobile apps
Consider a virtual bookkeeping team to stay on track

Consistency is easier with systems—not just willpower.

Indigenous Business Tip

For Indigenous organizations managing program funding or council reporting, delayed books can impact trust and funding renewals. Cleanup restores accountability and helps align with standards like the TH Financial Administration Act.