Catch-up bookkeeping in Edmonton: behind is fixable.

If you're reading this, there's a good chance your books are a few months behind. Or a year. Or you've stopped opening the folder entirely. You're not alone, and it's more fixable than it feels. Catch-up bookkeeping in Edmonton is a big part of what we do, and the process is the same whether you're three months or three years behind.

This guide covers what to gather, how long it takes, what the CRA risks actually are, and how to stay current once you're caught up. It applies whether you're in Mill Woods, Glenora, St. Albert or Sherwood Park.

1Why businesses fall behind

It's almost never laziness. The usual story is that the business got busy. You were serving clients, quoting jobs or filling orders, and bookkeeping slid to "this weekend" for long enough that it became a mountain. Other common triggers: a bookkeeper who left, a switch in software, a new baby, or a first year in business where nobody explained what was expected.

The good news: bookkeeping doesn't get harder because it's late. It just gets bigger. Every transaction is still sitting in your bank statements waiting to be categorized.

2What to gather before you start

Statements matter most. Most banks let you download several years of PDFs or CSV files from online banking. If you used a personal card for business purchases now and then, gather those statements too and we'll pull out the business items.

3How catch-up bookkeeping works

• Set the starting point. We confirm your last filed return or last reconciled month and start from there.
• Import the transactions. Bank and card data goes into QuickBooks Online or Xero, month by month.
• Categorize everything. Every transaction is coded to the right income or expense account, with GST split out where it applies.
• Reconcile each account. Every month's balance has to match the statement to the penny.
• Untangle the mix. Personal spending, owner draws, transfers between accounts and loan payments get sorted so they don't inflate expenses.
• Produce the reports. Profit and loss, balance sheet and GST summaries for each period, ready for your accountant or for filing.

Should you catch up yourself?

If you're only a month or two behind, comfortable in your software and not registered for GST, doing it yourself is realistic. Block out a few hours, start with the oldest month and work forward one reconciliation at a time.

It gets harder once you're a year or more behind, or when any of these apply:

• You're registered for GST and have returns to file or correct.
• You have employees and payroll remittances that need checking.
• Business and personal spending are mixed on the same accounts.
• A previous bookkeeper left the file half-finished or inconsistent.
• Your accounting software has duplicated transactions from a bank feed and manual entry.

In those cases a bookkeeper is usually faster and cheaper than the hours it would take you, and far less likely to file something that needs amending later.

Catch up first, or file first?

If a deadline is close, the order matters. Usually the most urgent year or GST period gets done first so it can be filed, and older periods follow. If CRA has sent you a letter asking for a return or information, that period jumps to the front of the line. A bookkeeper can help you sort the order so the most expensive problems get fixed first.

4How long catch-up takes

Three things drive the timeline: how many months are behind, how many transactions you have each month, and how complete your records are. A solo consultant with one bank account and 60 transactions a month is a very different job from a contractor with three cards, a line of credit and subcontractors. At Plum, most catch-ups are finished in 2 to 4 weeks.

When time is tight, like a GST deadline, a mortgage application or a lender asking for statements, Plum offers rush bookkeeping. Most rush jobs take 48 to 72 hours once we have your statements. See catch-up and rush options for how it works.

5The real CRA risks of being behind

Being behind on bookkeeping isn't itself a penalty. The risk comes from what it leads to:

• Late-filing penalties on income tax. If you owe and file late, the penalty is 5% of the balance owing plus 1% for each full month late, up to 12 months. Repeat late filers can face more.
• GST penalties and interest. Late GST returns with a balance owing attract their own penalty and daily interest.
• Interest that compounds daily on any unpaid balance.
• Arbitrary assessments. If you don't file for long enough, CRA can estimate what you owe and send you a bill. Their estimate is rarely generous.
• Held refunds and benefits. Refunds, GST credits and some benefits can be held until your returns are filed.

If you owe nothing, late filing usually costs little. If you owe, every month matters. If you're worried about years of unfiled returns, an accountant can tell you whether CRA's Voluntary Disclosures Program makes sense for you.

6Getting current, and staying there

Once your books are caught up, the goal is never to do this again. That means a simple monthly routine: categorize, reconcile, set aside tax. Our monthly bookkeeping checklist lays it out step by step.

Plum works with businesses across Edmonton, St. Albert, Sherwood Park and Spruce Grove. We'll catch you up, then keep you current on a flat monthly fee with no contract. If you're ready to stop dreading the folder, book a no-judgment call and tell us how far behind you are.

7Questions people ask

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This article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.