The end of the year is always a busy time, and navigating financial transitions can feel overwhelming—especially if you’re a former Bench Accounting client facing uncertainty about your bookkeeping. But take a deep breath. You’re not alone in this, and I’m here to help.
This guide is designed to walk you through each step of the transition process so you can regain control of your finances and move into the new year with confidence. Let’s tackle this together.
Step 1: Download Your Data
Bench will release client data on December 30th. Be ready to download it as soon as it’s available. This file will include the financial information they’ve been managing for you, and it’s the first step toward getting everything organized.
Step 2: Assess Missing Information
Once you have your data, review it thoroughly. Look for:
- Missing months
- Incomplete records
- Uncategorized transactions
Create a checklist to identify what needs to be completed or corrected. This will ensure nothing is left unresolved.
Step 3: Gather Bank Statements
Log in to your financial institutions and download all bank and credit card statements for the year. These will be critical for reconciling transactions and filling in any gaps in your data.
Step 4: Collect Receipts and Invoices
Check your email for receipts and invoices or scan physical copies you’ve kept. Organize them by category or month to make reconciliation smoother and faster.
Step 5: Choose an Accounting System
Now it’s time to transition to a new accounting platform. Here are a few options to consider:
- QuickBooks Online: A comprehensive option with strong connectivity and features for small businesses.
- Xero: A top competitor to QuickBooks, offering robust reporting and a user-friendly interface.
- Wave: A free, basic platform suitable for businesses with fewer transactions. Reporting is limited but may work for simpler needs.
- FreshBooks: A feature-rich option, though potentially pricier depending on your needs.
What About Kick? Bench is recommending Kick, but I can’t currently endorse it as a bookkeeper. Its features and pricing aren’t ideal for small businesses.
Step 6: Categorize Your Data
Work through your transactions one month at a time. Focus on categorizing income, expenses, and transfers accurately. Aim to complete one month per day to make steady progress without getting overwhelmed.
Step 7: Send Out Your 1099s
If you paid contractors $600 or more, you’re required to send them 1099 forms by January 31st. Use your categorized data to identify these contractors and ensure the forms are prepared and sent on time.
Step 8: Review for Accuracy
Take the time to review your categorized data carefully. Look for:
- Duplicate entries
- Missing receipts
- Discrepancies between bank statements and recorded transactions
Accuracy is key, especially with tax season around the corner.
Step 9: Save Your Financial Reports
Download and save these essential financial reports in a secure location:
- Income Statement
- Balance Sheet
- Cash Flow Statement
- Trial Balance
- General Ledger
These documents are crucial for tax preparation and understanding your financial health.
Step 10: Back Up Your Accounting Software
Protect your hard work by backing up your accounting data. Most platforms offer an easy export or backup feature—use it to ensure you don’t lose valuable information.
Need Extra Support?
I created this guide to help you navigate through this challenging time, but I understand if it still feels overwhelming. Please know as a bookkeeper I will never judge you or shame you for your choices or what you did! That’s why I’m here to support you in any way you need.
Here’s how I can help:
- Catch-Up Services: Rebuild your financial data with my 50% off catch-up services for 2024. I’ll help you organize your records and make sure nothing gets missed during this transition.
- Full-Service Bookkeeping: Prefer to hand off your bookkeeping entirely? Let’s chat about how I can take this off your plate and free up your time to focus on your business.
You don’t have to do this alone. Let’s work together to get your finances back on track so you can feel confident heading into the new year. Inquire about services here.
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