The instinct is to get current first and deal with the gap later. It is the wrong order, and it costs more. Every month you post on top of an unreconciled period inherits whatever was already wrong underneath it.
Start with the last clean month
Start by finding the last clean month. That means a month where every bank and card account was reconciled to the actual statement, not merely marked as reconciled in the software. That month is your foundation, and it is often further back than anyone expects.
Then work forward, one period at a time, reconciling each month against real statements before moving to the next. Slower at the start, dramatically faster than reconstructing everything twice.
Do not skip the balance sheet
Deal with the balance sheet, not just the P&L. Undeposited funds, an accounts receivable balance nobody recognises and a payroll clearing account that never clears are the three places a departed bookkeeper’s problems usually hide.
If there is a filing deadline in front of you, say so at the start. It changes the order of the work.
Where this comes up
If any of the above describes your situation, it is a twenty-minute phone call to find out what it would take to fix. Call (501) 424-0307 or book a free consultation.
Written by Mo Sliger
Owner of Sliger Bookkeeping in Cabot, Arkansas. Intuit Advanced ProAdvisor, certified in QuickBooks Online Level 2, QuickBooks Workforce and Intuit Enterprise Suite, and a daily Xero user. Nearly thirty years in restaurant management before bookkeeping, and a U.S. Navy veteran (1991–1995).
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