Catch-Up vs Clean-Up
Catch-Up vs Clean-Up
Key Differences
Catch-Up Bookkeeping
Primary Goal : To record transactions and reconcile accounts for a period where no bookkeeping was done.
Problem Addressed: Missing data, unrecorded transactions, and overdue financial records.
Process: Involves data entry and bank reconciliations to bring the books up to date.
Typical Need: For businesses that have neglected their books for several months or years due to time constraints or overwhelming growth.
Clean-Up Bookkeeping
Problem Addressed: Incorrect entries, miscategorized expenses, duplicate records, and unreconciled discrepancies.
Process:Involves a meticulous review of existing data, identification of errors, and realignment of financial reports.
Typical Need:For businesses that have been actively bookkeeping but suspect their records are flawed, leading to misleading financial statements.
In essence, you need a catch-up if your books are empty for a period of time, and a clean-up if your books have data but that data is wrong.
Rankin Bookkeeping - Professional bookkeeping services for accurate, reliable books.