Catch-Up Bookkeeping & Accounts Clean-Up

For companies, section 245(3) of the Companies Act 2016 specifies seven years after completion of the transactions or operations to which the records relate. Finishing catch-up work does not mean the supporting documents can immediately be discarded. Other obligations may also apply, so confirm the retention requirements for your entity and circumstances with your advisers and keep the documents used to reconstruct the accounts.

A suspense account temporarily holds entries whose correct treatment has not yet been established. Clearing it means investigating the underlying transactions, checking the supporting records and making the appropriate correcting entries. If information is missing, keep the unresolved items visible for follow-up rather than forcing the balance to zero. A cleared suspense account does not, by itself, prove that every error in the books has been found.

No. Updating the accounting records does not automatically amend a return or make a filing. If the work identifies an issue affecting an earlier return, raise it with the adviser responsible for that filing and agree any separate action needed.

Tell us the months or years affected, approximate transaction volume, where the records are kept and the last period you consider reliable. Include any deadline and a short list of missing documents or unexplained balances. Start with that overview; share detailed records only when the associate explains the next step.

The fee depends on the number of unfinished periods, transaction volume, available evidence and the reconciliation work needed. An initial picture of the backlog helps the associate define the periods, outputs and fee rather than assume every month needs the same effort.

There is no fixed timetable for every backlog. Record availability, unexplained balances and your responses to questions all affect progress. The associate agrees a sequence and review points after understanding the starting position.

Discuss both needs when you enquire. Current records may need a separate workflow while earlier periods are brought up to date. Responsibilities, cut-off points and opening balances should be clear so work is not duplicated.

The engagement sets the outputs for the periods being addressed. These can include updated records and a list of unresolved balances or items requiring evidence. Catch-up bookkeeping is not an audit and does not automatically include financial statement preparation or tax filing.

Compare the bank statement with the accounting records for the same period, match transactions and investigate differences. Timing differences, missing entries and errors need different treatment; the figures should not simply be forced to match. Keep the reconciliation and supporting records, and flag anything still unexplained. For catch-up work, agree the accounts and periods the associate will address. Our bank reconciliation guide explains the bank-checking process.

No. Bookkeeping records and organises business transactions; tax preparation uses financial information to work out and prepare the relevant tax return. Catch-up work addresses the agreed unfinished records and makes outstanding evidence clear. If you also need tax computation, a return prepared or a filing submitted, confirm that separately rather than assume it is included in the catch-up scope.

Monthly bookkeeping keeps the current cycle up to date. Catch-up deals with past periods that were never finished. The periods, outputs and review points are agreed at the start.

Bank statements are useful supporting records, but do not assume they replace every missing invoice or receipt. Provide them alongside the invoices, receipts and explanations you still have. The associate can identify where further evidence is needed; unresolved items stay on the outstanding-information list rather than being treated as proved. Whether an expense qualifies for a tax deduction is a separate question.

Identify the unfinished periods, missing records and unresolved balances. The order is agreed during scoping. A useful anchor is the last period you believe is reliable, because each period's closing figures become the next period's opening figures. Current bookkeeping may also need to keep moving while older periods are worked on.

Not always. Some items may still lack evidence when the agreed work is done. The outputs separate items resolved from items left open, so you can see what remains and what evidence would settle it.