When we meet with a new prospective client, one of the first things that comes up is back work.
Back work is all about getting caught up. It’s the work that needs to be done to bring a company’s books up to date so they’re in a current state. If you’re behind, whether it’s a few months or a full year, back work helps you get to a place where your numbers are right and reliable.
If your business is behind on bookkeeping or tax filings, don’t panic. This happens all the time, and we help business owners fix it every day. Here’s what back work actually means, how we figure out what needs to be done, and what it costs to get your books up to speed.
Where Does Back Work Start?
Before we start fixing anything, we first need to figure out the last complete month that is 100% correct.
For a lot of new clients, this is the last tax return they filed. That’s usually the last time their books were carefully reviewed and officially closed. If they’ve been working with another accountant, we’ll take a look at those records to see if they’re solid enough to be a jumping-off point.
If you’re using QuickBooks, you might already have some data in there, but it’s not always complete or accurate. We’ll ask questions like:
- What’s the last month you know is fully closed?
- When was the last time everything was accurate and up to date?
- Has anyone been keeping up with some of the bookkeeping, or is it completely behind?
We don't start guessing or assuming. We find the last good numbers and go forward from there.
How We Charge for Back Work
Back work is based on how many months we need to catch up.
- If you need all of 2024 cleaned up, then we take our monthly accounting fee and multiply it by 12 months.
- If some data is already in QuickBooks but we don’t know how accurate it is, we do an assessment first before giving a proposal.
- If only a few months need work, the cost is based on the number of months that need to be fixed.
The goal is to get everything completely closed and right, so when you look at your numbers, you know they can be trusted.
The Tax Catch-Up Piece
Back work isn’t just about bookkeeping. There’s also a tax catch-up piece.
Why is there a tax catch-up investment?
Our monthly accounting fee includes tax preparation, but if we start working with you later in the year, we haven’t collected enough to cover the full tax return.
For example: If we start working with you in November, we’ve only collected two months of fees. But we’re preparing your entire 2024 tax return, which means there are 10 months of tax work that we haven’t been paid for.
This investment isn’t just for the tax return itself. It covers a lot more, including:
- Tax planning and projections
- Annual business reports
- Tangible property tax filings
- Business income tax returns
When we calculate back work, we figure out how much of the tax fee has already been collected and what’s still left.
Payment Options for Back Work
Back work can add up, especially if you’re catching up on several months or an entire year. That’s why we offer payment options to help make it manageable.
Some businesses prefer to pay in full and get everything handled right away. Others break it into a few payments to spread out the cost. Either way, we work with you so that back work doesn’t feel like a financial burden.
The most important thing is that your books are caught up and correct, so you’re making decisions based on real, accurate numbers.
Why Back Work Matters
If your books aren’t caught up, you’re making decisions without knowing the full picture.
- Your tax return might not be accurate.
- You won’t know how much cash you actually have.
- You could miss out on loans or funding.
- You might be underpaying or overpaying taxes.
Back work isn’t just about cleaning up old numbers. It’s about making sure you have good numbers going forward. Once everything is right and up to date, you can focus on running your business instead of worrying about what’s missing.
Get Caught Up and Move Forward
Getting caught up is about making sure your books are clean, your taxes are accurate, and your financial data is reliable so you can make smart business decisions. Once back work is handled, you’ll have a clear financial picture, peace of mind, and the confidence to move forward.
If you’re wondering what it might cost to get caught up and what ongoing accounting services look like for your business, check out our pricing page to see how our monthly services are structured.
Let’s get your books back on track so you can focus on what you do best—running your business.
