Catch-Up Bookkeeping for Accounts Payable and Receivable
When your accounts payable and receivable fall behind, it gets harder to know which bills to pay, which customers still owe you and how your business is actually performing. Missing transactions and outdated records can also complicate GST/PST filings and year-end accounting.
Maje Accounting CPA provides catch-up bookkeeping to help businesses bring overdue records up to date, reconcile transactions, and get a clearer picture of their finances. Whether you are a few months behind or need to work through older records, our team can help you get your books up to date.
What Are Accounts Payable and Accounts Receivable?
Accounts payable and accounts receivable track money moving in and out of your business. Recording both keeps your financial records reliable and shows you where your cash flow stands.
Accounts Payable
Accounts payable (AP) is the money your business owes suppliers for goods and services it has received but not yet paid for, such as stock, materials, software subscriptions, utilities, and professional services.
Accurate AP records help you track outstanding bills, avoid paying the same bill twice, and plan for upcoming expenses.
Accounts Receivable
Accounts receivable (AR) is the money customers owe your business for products or services you have provided but have not yet been paid for.
Up-to-date AR records help you spot overdue invoices, follow up on unpaid balances, and see how much revenue you are still waiting to collect.
What Is Catch-Up Bookkeeping for Accounts Payable and Receivable?
Catch-up bookkeeping brings overdue financial records up to date. For AP & AR, this means reviewing past transactions, entering missing bills and invoices, correcting errors, and reconciling balances against the records available.
Depending on the state of your books, the work may include:
Recording supplier bills and payments that were never entered.
Finding customer invoices and payments missing from your records
Reviewing outstanding balances and overdue invoices.
Matching transactions against bank statements and other supporting documents.
Checking supplier statements for missing bills, credits, or payments.
Reviewing GST/PST coding and flagging discrepancies that need attention.
Signs Your Accounts Payable and Receivable Need Catch-Up Bookkeeping
Falling behind on bookkeeping is not always obvious at first. These are some of the most common signs that your records may need attention.
You Aren’t Sure Which Customers Still Owe You
If you are unsure which customers still owe you money, your accounts receivable records may be out of date. Missing payment entries can make paid invoices look outstanding, and unrecorded invoices leave revenue out of your books completely.
An accurate receivables report shows you which accounts are overdue and which customers need a follow-up.
Supplier Bills Are Missing or Duplicated
Missing supplier bills understate what your business owes. Duplicate entries do the opposite, overstating both expenses and outstanding balances.
Comparing your recorded bills against supplier statements and payment records brings these discrepancies to the surface.
Supplier Statements Do Not Match Your Books
When a supplier statement shows a different balance to your accounting records, there may be missing invoices, unrecorded payments, credits that were not applied, or other posting errors.
Reconciling the two balances shows what is genuinely outstanding.
Your Bank Balance Does Not Match Your Books
If the balance in your accounting software does not match your bank statement, transactions may be missing, duplicated, or recorded incorrectly. Until someone looks into the difference, your financial reports may not give you an accurate picture of your cash position.
GST/PST Filing Is Approaching, but Your Records Are Incomplete
Incomplete expense records can make it harder to prepare accurate GST/PST returns and identify eligible input tax credits. Businesses in British Columbia also need to account for PST where it applies.
Organizing your records before you file gives your accounting team a clearer basis for reviewing transactions and resolving open questions.
Common Accounts Payable and Receivable Problems
Catching up on overdue books is not just a matter of entering missing transactions. The work should also find out why balances are wrong and correct the underlying cause.
Customer Payments Have Been Recorded Incorrectly
A payment may have been applied to the wrong invoice, recorded as income without being matched to the customer’s account, or missed altogether.
These errors make receivables reports unreliable and can lead to reminders going out to customers who have already paid. Reviewing invoices alongside payment records establishes which balances are still outstanding.
Old Receivables May Need Further Review
An overdue invoice does not automatically mean the amount should be written off. Some customers may still pay, while other debts may require further assessment.
A CPA can review the circumstances and explain the accounting and tax considerations involved in writing off a bad debt. The right treatment depends on the facts and applicable requirements.
Supplier Credits and Prepayments Were Never Applied
Supplier credits, deposits, and prepayments are easy to miss when records fall behind. For example, a supplier may have issued a credit for returned goods, but the credit was never applied to the outstanding balance.
Unapplied credits and prepayments can make your AP report inaccurate. Reviewing supplier statements, credit notes, and payment records shows how these amounts should be recorded.
GST/PST Has Been Coded Incorrectly
Transactions may have been assigned the wrong tax code or recorded without enough supporting information. This can affect tax reporting and the accuracy of your financial records.
Catch-up bookkeeping should identify and review these discrepancies before the relevant returns are finalized.
Maje Accounting CPA can review your bookkeeping needs and outline the next steps.
Should You Catch Up on Bookkeeping Yourself or Hire a Professional?
If you are only a few transactions behind and your records are straightforward, you may be able to catch up yourself using your accounting software and supporting documents.
Professional help is worth considering when:
- Several months or years of records need attention
- Account balances do not match
- Supplier statements show discrepancies
- A tax filing is approaching
Catch-Up Bookkeeping for Businesses in Vancouver
Maje Accounting CPA works with businesses across Vancouver, Surrey, and the Lower Mainland, providing bookkeeping and accounting support for local businesses that need to bring their financial records up to date.
CPA Expertise and Experience
Maje Accounting CPA has more than 10 years of experience and has served over 100 clients. For catch-up bookkeeping projects, the team can review outstanding accounting questions and identify issues that need further attention.
Support Beyond Catch-Up Bookkeeping
Once your books are current, the same team can handle your monthly bookkeeping, payroll, and business tax.
Need Help Getting Your Accounts Payable and Receivable Caught Up?
Whether your records are a few months behind or you need to work through a larger backlog, Maje Accounting CPA can help you understand what needs attention and plan the next steps.
Contact us today to schedule your free consultation and find out how our team can help get your books back on track.
- Bookkeeping Pricing Plans
Need Ongoing Bookkeeping After Catch-Up?
Bookkeeping Packages
Starting at
$ 499 / Month
- Monthly Financial Reports
- Bank Reconciliations
- Credit Card Reconciliations
- Accounts payable
- GST/PST Filing
- WCB Filings
Optional Add on Services
- Payroll/Remittances starting at $80/month
- Accounts Payable Management $150/month
Testimonials
Those who trust us
Salim assisted in catching up my books, and has been really helpful and patient in explaining things, We now have a clearer picture of our financial situation, I would highly recommend.
Maje Accounting has been a great experience. I have been using Salim’s services for over 4 years and haven’t had any issues. He is knowledgeable and takes pride in his work. His rates are very reasonable and always get all my business accounting completed before deadline.
I highly recommend Maje accounting for any tax-related assistance. Their expertise and professionalism were outstanding. Their attention to details and patience for explaining the process and concepts in a clear and understandable manner were invaluable throughout the process.
Frequently Asked Questions
The cost of catch-up bookkeeping depends on the size of the backlog, the condition of your existing records, and the number of transactions that need to be reviewed or corrected. Contact Maje Accounting CPA to discuss your bookkeeping needs and request a quote.
The time required depends on how far behind your books are, the volume of transactions, and how complete your supporting records are. Once Maje has reviewed your situation, the team can provide a clearer idea of the work involved and the expected timeframe.
Accounts payable is money your business owes to suppliers, while accounts receivable is money customers owe your business. Both need to be recorded accurately to maintain reliable financial reports and manage cash flow.
Yes. A bookkeeper can manage both accounts payable and accounts receivable as part of a bookkeeping service. The amount of support required depends on transaction volume, the complexity of the business, and whether additional accounting or tax advice is needed.
Common documents include bank and credit card statements, supplier bills, customer invoices, receipts, payment records, credit notes, and previous bookkeeping files. The exact requirements depend on how far behind the records are and which transactions need to be reviewed.
An unpaid invoice should be reviewed before it is written off. The appropriate accounting and tax treatment depends on the circumstances, the records available, and the applicable rules. A CPA can help assess whether the amount qualifies as a bad debt for tax purposes and how it should be recorded.
CRA record-retention requirements generally require businesses to keep relevant books and records for six years from the end of the last tax year to which they relate, subject to exceptions. Refer to the CRA’s record-keeping guidance for the rules that apply to your situation.
