Bookkeeping is different than it was five years ago, and so are some of the warning signs that should make you consider a proper account cleanup.

While many business owners may try to tidy their books when anomalies surface, it’s critical to ensure everything is accurate and organized ahead of key events.

Here are the top triggers that indicate it’s time to start an internal bookkeeping audit:

  • Too many disconnected integrations:
    Excess apps and rushed integrations can lead to duplicate entries or incomplete transactions. Add payment apps sparingly and deliberately. If any duplicates arise, perform an audit to figure out why.
  • Unreconciled automated workflow errors:
    Automated rules can miscategorized transactions. If you don’t have daily human oversight of your automation processes, now is a good time to stop and check for any unreconciled errors.
  • Surprising P&L results:
    If a generated P&L statement seems off, don’t excuse it as an “off month” or something you’ll look into if the problem persists on the next report. High or low profit margins should trigger bookkeeping cleanup right away.
  • Preparing for a loan:
    You don’t want the banks and potential lenders to be the ones to tell you that something is amiss. Clean up your books ahead of every loan application, resolve anomalies and put yourself in the best possible position for approval.
  • Incoming tax season:
    Tax season has a way of surprising many small business owners. Performing a thorough audit of your books now will avoid a stressful time crunch.

If you need help with any of these triggers or even better, you want to be proactive and prevent all of these triggers, head over to our Discovery Form for a complimentary consultation!