The 5 Signs Your Books Need a Clean-Up (Before Tax Season Gets Ugly)
Messy books usually start small — until tax season arrives.
Most business owners don’t realize their bookkeeping needs attention until something forces the issue.
Usually it’s:
Tax season stress
A CPA asking uncomfortable questions
Cash flow that doesn’t make sense
Or reports that simply don’t look right
The reality is that bookkeeping problems build slowly over time — and the longer they sit, the harder (and more expensive) they become to fix.
Here are five warning signs I commonly see when reviewing books for Phoenix small businesses.
🚩 1. Your Bank Accounts Aren’t Reconciled
This is the biggest red flag.
If accounts aren’t reconciled monthly, your financial reports quickly become unreliable.
Common symptoms include:
Ending balances that don’t match statements
Duplicate transactions
Missing expenses or deposits
Numbers changing unexpectedly month to month
Reconciliation isn’t optional bookkeeping maintenance — it’s the foundation everything else sits on.
🚩 2. Uncategorized Transactions Keep Piling Up
If your bookkeeping shows dozens (or hundreds) of transactions categorized as:
Uncategorized Expense
Ask My Accountant
Suspense or clearing accounts
…it usually means bookkeeping has fallen behind.
These transactions create inaccurate reports and often lead to missed deductions or incorrect financial decisions.
Small problems compound quickly here.
🚩 3. Your Profit Looks Good — But Cash Feels Tight
This is one of the most common frustrations business owners experience.
Your Profit & Loss statement shows profit, yet:
The bank balance feels low
Credit cards keep growing
Taxes come as a surprise
This disconnect typically means timing issues, misclassifications, or incomplete bookkeeping.
Your reports may technically run — but they’re not telling the real story.
🚩 4. Negative Balances Appear in Strange Places
Certain accounts should almost never be negative.
Examples I frequently see during clean-ups:
Negative Undeposited Funds
Negative Accounts Receivable
Vendor balances that don’t make sense
Old transactions lingering for years
These usually signal workflow issues rather than simple mistakes — and they rarely fix themselves.
🚩 5. Your Accountant Requests Adjustments Every Year
If your CPA regularly says things like:
“We had to make several adjustments.”
“Your books needed cleanup.”
“Next year let’s try to keep things cleaner.”
That’s a strong indicator your bookkeeping system needs improvement.
Clean books reduce tax prep costs, stress, and surprises.
✅ The Good News
Most bookkeeping issues are completely fixable.
In many cases, a structured clean-up project can:
Restore accurate financial reports
Prepare books for tax filing
Improve cash visibility
Create a solid foundation going forward
The earlier problems are addressed, the easier the solution becomes.
💡 When to Consider a Bookkeeping Clean-Up
If you recognize two or more of these signs, it’s usually time for a professional review.
A clean-up isn’t about assigning blame — it’s about getting clarity so your numbers actually support business decisions.
📍 How I Help Phoenix Business Owners
At Go Get Geek!, I help small businesses:
Clean up and organize QuickBooks Online
Reconcile accounts properly
Produce tax-ready financial statements
Transition into reliable monthly bookkeeping
Because accurate books shouldn’t only exist once a year at tax time.
