When it comes to making the best decisions for your business, you need to have accurate financial statements. Books that are not complete or not accurate will prevent you from paving the way to success. A bookkeeping cleanup will do that.
Why should I get my books cleaned up?
Over time, miscategorizations and duplicates will occur in your accounting software. This can be due to unqualified people doing your bookkeeping or not reconciling your books on a consistent basis. These issues can have significant tax consequences and create false performance results if not corrected.
Duplicate income transactions will show that you received more income than you actually received. This will cause you to report more profit and increases your potential tax liability.
Duplicate expense transactions will show that you had more expenses than you actually had. This will cause your business to appear less profitable.
Owner’s equity transactions that are miscategorized as expenses falsely state your equity balance and make your business appear less profitable.
Having personal accounts connected to your business accounting software creates mayhem. Personal deposits will falsely increase business revenue, personal expenses will falsely increase business expenses.
What happens during a cleanup?
Our trained and experienced team will begin by performing an initial diagnostic review of your books to look for discrepancies. We will run financial reports to ensure items appear in the correct section of the applicable financial statements. Once the initial diagnostic review is complete, we will be in touch to discuss our findings, report areas of concern, and explain what needs to be done during your cleanup.
Your chart of accounts will be reviewed for accuracy as well as your products and services list. Mappings will be reviewed to make sure transactions appear where they should.
Reconciliations will be performed once you provide statements for all of your bank, credit card, and loan accounts. This helps to ensure that all transactions are present in your accounting software and duplicates can be removed. Reconciling your accounts will also allow the correct balances to appear in your financial statements.
Transactions will be reviewed for accurate categorizations and corrected, if necessary.
Workflows that were not followed correctly in the past will be identified and we will work with you to implement them properly moving forward.
We will be in communication with you through every step of your cleanup. It’s important that you understand what is happening within your books and how to effectively work within your books in the future.
What makes us different?
We utilize technology to improve the efficiency of our workflows so things don’t fall through the cracks. Our team consists of degreed accounting professionals. Our President holds a Bachelor’s degree in Accounting giving you extra confidence in our work. As our professional relationship matures, we can provide valuable feedback regarding areas of concern that require improvement and areas that are functioning properly. We aim to be a trusted advisor to you and your business.
With us in your corner, you no longer have to feel that you’re all alone. We can provide you with the business insights that an entry-level bookkeeper can not. Your business depends on having accurate financial statements so that you can make the best decisions to ensure your success.
If you are more of a do-it-yourselfer, you can learn more about bookkeeping through our podcast, The Better Bookkeeper.