Bookkeeping Services
Behind on Your Books? Catch-Up Bookkeeping in Charleston, SC
If your books are months or years behind, we rebuild them from statements, reconcile every period oldest first, and leave you with a file a tax return can be prepared from.
An extension (Form 4868 for individuals, Form 7004 for most business returns) must be filed by the return's original due date, and it does not extend the time to pay any tax owed.
Catch-up bookkeeping means rebuilding the periods that were never recorded or never reconciled, working from bank, card and loan statements, oldest month first, until every account ties to its statement. Haigler CPA Group does this as the first piece of a bookkeeping engagement, then moves you to a monthly close. If a filing deadline is close, an extension buys time to file, not time to pay.
How we handle it
Free consultation
We talk through how far behind the books are, which accounts exist, what software you use, and whether any return, sales tax filing or 1099 deadline is close. You leave knowing what the catch-up covers and what we need from you.
Gather statements and access
We collect every bank, credit card, loan and payment-platform statement for the periods involved, plus access to your QuickBooks Online file if one exists. Missing statements are requested from the bank rather than estimated.
Reconcile oldest period first
Each account is tied to its statement month by month, starting with the earliest unreconciled period, because an error in an early month carries into every month after it. Differences are traced to their cause, not plugged.
Correct the balance sheet
Owner draws and contributions are separated from business expenses, loan payments are split into principal and interest against lender statements, and clearing accounts are emptied. This is where most of the real errors in a neglected file turn up.
Flag the tax consequences
Once the numbers are real, we compare them with what was already filed: sales tax returns, 1099s and prior income tax returns. Where something filed no longer matches, we tell you plainly and discuss whether an amended return or correction is warranted.
Move to a monthly close
With the file current, we close each period so it cannot change silently and continue with monthly transaction entry and reconciliations, so you do not end up behind again.
What to have ready
- Bank statements for every business account, for each month that is behind
- Credit card statements, including any personal card used for business
- Loan and line-of-credit statements, including year-end balances
- Payment platform reports (Square, Stripe, PayPal, Shopify or similar)
- Login or accountant access to your QuickBooks Online file, if you have one
- Prior-year tax returns and any depreciation schedule
- Sales tax returns filed with the SCDOR, if you collect sales tax
- W-9s and payment records for contractors you paid
- Any IRS or SCDOR notices you have received
Please don’t send tax documents or Social Security numbers through the website form. Bring them to the consultation. More in documents to bring to your CPA.
Signs your books are further behind than you think
- The last bank reconciliation in the file is from a prior year, or there is none at all.
- The bank feed has hundreds of uncategorized transactions waiting for review.
- Undeposited funds, uncategorized income or an "ask my accountant" account carries a large balance.
- The loan balance in the books does not match the lender's statement.
- Personal and business spending run through the same account or card.
- Your last tax return was prepared from bank deposits and a shoebox rather than from closed books.
- A lender, buyer or partner has asked for financial statements and you hesitated.
Why reconcile before you file, not after
A tax return built on unreconciled books inherits every error in them: income counted twice when a transfer between accounts was coded as a sale, loan principal deducted as an expense, owner spending treated as a business cost. The return can look finished and still be wrong in both directions.
Filing late has a cost, but so does filing wrong. The IRS failure-to-file penalty is 5% of the unpaid tax for each month or part of a month the return is late, up to 25%, and partnerships and S corporations face a separate penalty calculated per partner or shareholder for up to 12 months. That is why an extension and an accurate return are usually better than a rushed return on the deadline.
If a deadline is close
| Return | Extension | What it does not do |
|---|---|---|
| Individual (Form 1040, including Schedule C) | Form 4868: extends filing to October 15 | Does not extend the time to pay; tax owed is still due by the April deadline |
| Partnership, S corporation, C corporation and other business returns | Form 7004: generally an automatic 6-month extension, filed by the return's original due date | Does not extend the time to pay any tax due |
| South Carolina individual return | SC accepts the federal extension if no SC tax is due; otherwise SC4868, or a payment through MyDORWAY, which submits the extension request | Does not extend the time to pay; SCDOR says at least 90% of the tax due must be paid with the request |
What catch-up work usually uncovers
Owner draws coded as expenses
Money you took out of the business is not a deduction, and personal purchases on a business card are not business expenses because of the card they went on. Reclassifying them often raises reported profit, which is better found now than in an examination.
Loan payments booked in full
Only the interest portion of a loan payment is an expense. When the whole payment was expensed, profit is understated and the loan balance on the books never comes down. Tying the balance to the lender's statements fixes both.
Sales tax that does not match sales
If you collect South Carolina sales tax, the returns you filed should agree with the sales in the reconciled books. Where they do not, we show you the gap so it can be addressed with the SCDOR rather than discovered by it. Our South Carolina sales tax article covers the registration and filing basics.
1099s that were never sent
Once contractor payments are visible, it becomes clear who should have received a Form 1099-NEC. For payments made in 2026 the reporting threshold is $2,000; payments made in 2025 and earlier were reported under the old $600 threshold. Missing W-9s are easier to collect now than in January.
After the catch-up
A caught-up file only stays useful if each month is closed after it. Most clients move straight into monthly bookkeeping with us, and because the same firm prepares the return, questions get answered during the year instead of at filing time. Our monthly bookkeeping checklist shows what that routine looks like if you prefer to keep the books yourself.
Sources
By Haigler CPA Group. Updated . The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
This is for you if
- Your books are months or years behind, or have never been reconciled.
- A tax deadline is coming and you do not trust the numbers you would file from.
- A lender, buyer or partner has asked for financial statements.
- You switched bookkeepers or software and the handover left gaps.
- You want to move to a monthly close once the history is fixed.
What sits outside this service
- Payroll processing, which this firm does not offer; we reconcile around what your payroll provider runs.
- Accounts payable and receivable runs, such as paying your bills or chasing customers.
- Audited or reviewed financial statements; we do not perform attest engagements.
- Controller or CFO-level work.
Start somewhere else if you need
Questions people ask about this
How far back can you catch up my books?
As far back as the periods that matter for your returns and your lender, provided the statements can be obtained. Banks can usually reissue past statements, and we work from those rather than estimating. The usual starting point is the last period that was genuinely reconciled.
Can I file my taxes before the books are caught up?
You can, but a return built on unreconciled books carries every error in them. If the deadline is close, an extension (Form 4868 or Form 7004) gives time to file accurately. It does not extend the time to pay, so we estimate what you owe and pay it with the extension where needed.
Do I need QuickBooks for catch-up bookkeeping?
No. If you already have a QuickBooks Online file we work in it and clean it up. If you have no software, we can set up QuickBooks Online and build the history into it from your statements, which also gives you a file to continue with monthly.
What if I find out a prior tax return was wrong?
We tell you what the difference is and whether it is large enough to justify an amended return. Correcting an error yourself is generally a better position than having it found. If years are unfiled rather than wrong, see our page on unfiled tax returns.
Do I have to come to the office?
No. We meet in person at our James Island office in Charleston or by video. Remote catch-up work is routine for clients across South Carolina and out of state.
Keep reading
- Bookkeeping ServicesClean books, reconciled monthly, ready for tax time.
- A Monthly Bookkeeping Checklist for Small BusinessesBookkeeping goes wrong slowly. A month that is never closed becomes a quarter nobody trusts, and then a filing season spent reconstructing a year from bank statements. The routine below prevents that.
- South Carolina Sales Tax for Small BusinessSales tax is the obligation small businesses most often discover late, because nothing about it is triggered by profit. It is triggered by making a sale, and it starts on the first one.
- Tax Deadline CalendarThe federal dates that matter, in order, with what each one actually requires.
Talk to a tax expert
Tell us what you are dealing with and we will tell you how we would handle it.