Bookkeeping should be up to date at all times.  It’s a good idea to get into the habit of doing month end closings so you don’t get too far behind.  One key reason for this is that the business may need to get a loan.  The bank will be looking for a current income statement, balance sheet and cash flow statement.  If you provide bookkeeping services for a business, be ready to prepare these for your client at a moment’s notice.  If you are a business owner, be sure that you have hired a qualified bookkeeping firm.  When it comes time to expand your business you will want to know that you have accurate records.