Months behind on bookkeeping? How a catch-up actually works.

The short answer: a bookkeeping catch-up rebuilds the missing months one at a time, oldest first. Every bank and credit card account is reconciled to its statements, HST and payroll are checked against what was actually filed and paid, and you end up with books you can use again. At HarperCo that job is Books Rescue. It costs $295 for each month you're behind, with a minimum of $885, quoted as one flat number at the free Books Checkup and never billed by the hour.

How does a bookkeeping catch-up actually work?

It runs in the same order every time, because each step depends on the one before it.

1. Collect the statements. Every bank account, credit card and loan, for every missing month. Statements are the spine of the job. Most can be downloaded, so this part is usually faster than owners fear.
2. Rebuild each month in order. Every transaction gets a category. Every account gets reconciled, which means the books and the bank statement agree to the penny at month end. A month isn't done until it balances. Then the next one starts.
3. Check HST and payroll against what was filed. This is where the surprises live. The rebuilt books show what you collected and what you deducted. Your CRA account shows what you filed and paid. The gap between the two is the real number.
4. Close it and hand it over. Every month reconciled, a short list of anything still open, and books ready for the monthly work to take over.

Your part is smaller than you think. Statement access, the box or folder of receipts, and answers to a list of questions about the transactions nobody recognizes. You don't need to sort anything first. Sorting is the job.

How far back can the books be caught up?

As far as they need to go. The CRA generally expects you to keep your records and supporting documents for six years from the end of the last tax year they relate to, so the paper trail for a catch-up usually still exists. A year behind is a bigger job than three months behind, but it's the same job. The size changes the price, not the method.

What do late HST and payroll filings cost?

This is the part that makes waiting expensive. The HST you collect and the amounts you deduct from wages are what the CRA calls deemed trust amounts. They were never yours to spend, and the CRA charges for lateness on both.

A late HST return with a balance owing carries a late-filing penalty. It is 1% of the amount owing, plus 0.25% of the amount owing for each full month late, up to 12 months. On $5,000 owing and four months late, that works out to $100. Interest is on top, and it starts on the day the payment was due.

A late payroll remittance costs more, and faster. The CRA's late-remitting penalty is 3% when the amount is one to three days late. It is 5% at four or five days and 7% at six or seven days. After that, or if nothing is sent, it is 10%. For amounts over $500, it applies whether the lateness was deliberate or not. On a $4,000 remittance sent more than a week late, that is $400 before interest.

None of this is a reason to panic. It's a reason not to wait. A catch-up finds the real number, and knowing it is always cheaper than guessing at it.

What does a lender see when the books are behind?

I spent 9+ years on the lending side reading small-business files. Books that stopped months ago were one of the things I saw hold a file up most often. Not because anyone assumed the worst. Because nobody could see anything recent enough to judge.

Stale books raise three questions at once. Is the business still earning what the last statements say? Is there HST or payroll money owing that hasn't shown up yet? Can today's cash flow carry the payment being asked for? When the books can't answer, the file usually waits until they can. More on that in what lenders actually look at in your financials.

What does a bookkeeping catch-up cost?

Books Rescue is priced per month of backlog, so you can work out your number before you call. The smallest job is three months.

One-time charges, never hourly. $295 for each month behind, minimum $885. Source: Books Rescue.

The quote is one flat number, set at your free Books Checkup. Once the books are current, the monthly work starts clean. Monthly bookkeeping starts with Books Compliance at $395 a month. Our standard scope, Monthly Books Bank-Ready, is $850 a month and adds the Bank-Ready Report every month. The Checkup names the smallest scope that keeps you current, so you don't have to.

From the desk

Owners who are behind tend to carry it as a personal failing. From the lending side it usually read as something simpler: a busy owner with nobody on the books. That's a staffing problem, and staffing problems have prices.

Key facts

• Business records are generally kept for six years from the end of the last tax year they relate to (CRA, keeping records, checked September 27, 2026).
• Late GST/HST return with a balance owing: 1% of the amount owing, plus 0.25% of the amount owing for each full month late, up to 12 months (CRA, GST/HST filing penalties).
• Late payroll remittance: 3%, 5%, 7% or 10%, depending on how many days late (CRA, late remitting).
• HST collected and payroll deductions are deemed trust amounts (CRA, deemed trust).
• Books Rescue: $295 for each month behind, minimum $885, one flat quote (HarperCo, Books Rescue).
• The free Books Checkup is 30 minutes, with one page of written findings (HarperCo, Books Checkup).

Notes like this are general information, not advice on your specific situation — that’s what the kitchen table is for. — Dominic