Bookkeeping and accounting services for Santa Fe and Northern New Mexico small businesses.

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What happens if I haven't done bookkeeping in years?

First, you’re not alone. Many small business owners fall behind on their books, sometimes for years. It happens when running the business takes priority over paperwork, and suddenly you realize you have no financial records to speak of.

What actually happens is you lose visibility into your business. You don’t know your real profit margins, you can’t tell which months were strong or weak, and decisions get made on gut feeling instead of actual numbers. If you need a loan or line of credit, lenders want financial statements you can’t produce. Tax returns may have been filed using rough estimates, which creates risk if you’re ever audited.

The good news is this is fixable. Catch-up bookkeeping means going back through your bank and credit card statements, reconstructing every transaction, categorizing expenses, and reconciling accounts month by month. The further back you go, the more work it takes, but banks typically keep statements available for several years online, so the raw data usually still exists.

You’ll need to gather bank statements, credit card statements, and any invoices or receipts you still have. If some documentation is missing, the bank and credit card records become the foundation. Transactions can be categorized based on vendor names and payment amounts. Perfect records aren’t always possible when reconstructing the past, but accurate records are achievable.

Tax implications depend on what you’ve filed. If returns were based on rough estimates, you may want to amend them once you have accurate numbers. If you haven’t filed at all, getting your books in order is the first step before addressing that with a tax professional. Coming forward voluntarily is always better than waiting for the IRS or New Mexico Taxation and Revenue to come asking questions.

Working with a bookkeeper for small business owners who understands catch-up situations makes the process faster. Someone experienced with reconstructing financial records knows how to pull the necessary data, identify gaps, and get you current without requiring you to become an accounting expert yourself.

The longer you wait, the more transactions pile up. A year of catch-up work is manageable. Five years is significantly more effort. If you’ve been putting this off, now is better than letting another year of transactions add to the backlog.

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More Questions

How do I track projects in QuickBooks Online?

QuickBooks Online has a built-in Projects feature that tracks income, expenses, and time by project. Turn it on in your settings, create projects linked to customers, and assign every transaction to the right project.

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Should I have a separate bank account for each rental property?

Not necessarily. If all your properties are in one LLC or your personal name, a single operating account with proper bookkeeping can track each property separately. But if properties are in different LLCs, you need to keep the accounts separate to maintain legal protection.

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How do I set up payroll for my small business?

Setting up payroll requires a federal EIN, New Mexico state tax registration, unemployment insurance registration, and W-4s from employees. Most small businesses use payroll software or outsource to handle calculations and compliance automatically.

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What questions should I ask when hiring a bookkeeper?

The right questions help you evaluate both skills and fit. Ask about industry experience, what's included in the monthly fee, how communication works, and what quality control process they use before delivering your books.

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How do I import transactions into QuickBooks?

You can import transactions through connected bank feeds or by uploading a CSV file. Bank feeds work best for ongoing bookkeeping while manual imports handle historical data or banks that won't connect.

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What is the difference between a bookkeeper and an accountant?

Bookkeepers maintain your day-to-day financial records. Accountants analyze those records and handle tax strategy. Most small businesses need both, just not at the same frequency.

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Focus Point Accounting provides bookkeeping and accounting services for small businesses across Santa Fe and Northern New Mexico. Led by Stephen Vigil, a Certified Internal Auditor with 20+ years of experience. We bring an auditor's precision to your financial records.

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