Case Studies
When the Reports Don’t Match Reality
Coastal Marine Systems had books that said one thing and tax filings that said another. Their bookkeeping was chaotic until we rebuilt the structure so their reports finally matched reality.
Coastal Marine Systems runs a legit operation. Equipment sales, service contracts, vendors, merchant fees, the whole flow. But when their CPA asked for reports, nothing aligned. The books said one thing. The tax return said another. And no one could make sense of either.
They came to FTLOBS because their bookkeeping was chaotic. Categories were wrong. The balance sheet was unreadable. And the biggest problem? Their taxes were filed on a completely different accounting method than what QuickBooks was using. They needed structure and clarity fast.
Structural Review
Why Coastal Marine Systems books never matched their tax return
When bookkeeping does not match a tax return, it is rarely a small mistake. It is usually a full stack problem. Coastal Marine Systems had six structural failures that created reporting discrepancies across every part of their financials.
What Was Broken
Their financial records were incomplete. Transactions had missing details, blank payees, inconsistent categories, and no structure. Without organized inputs, the reports could never tell the truth.
Why It Broke
They had no expense tracking system. Money flowed out daily but nothing explained where it was going. There was no visibility, no organization, and no way to measure spending accurately.
How the Pattern Showed Up
The chart of accounts was disorganized, full of duplicate accounts and vague categories. Reports were unreadable. The CPA could not rely on the numbers because the structure supporting them was broken.
What Needed Reconstruction
Their books were kept on accrual while taxes were filed on cash. This mismatch created discrepancies everywhere. On top of that, QuickBooks settings were never configured, and multiple bank accounts were unreconciled with inaccurate balances.
The results once the structure was rebuilt
We updated all QuickBooks settings including tax form and industry. We switched the books to cash basis to match tax filings. We connected and cleaned up bank feeds, rebuilt the chart of accounts, relabeled every transaction by payee and category, and overhauled both the profit and loss and balance sheet.
The result was clean, accurate, CPA ready financials. Merchant fees mapped correctly. Sales tax recorded properly. Expense tracking restored. Reports that finally matched the tax return. Coastal Marine Systems gained clarity, accuracy, and a bookkeeping system that actually supports decision making.
Frequently Asked Questions
What if my books are on accrual but taxes are filed on cash?
We see this all the time. We convert your books to cash, align your reports with your CPA’s filings, and remove the discrepancies that keep causing confusion.
Can you fix incorrect QuickBooks settings?
Yes. We correct tax forms, industry tags, and all setup settings so your file reflects how your business actually runs.
What if my expenses and income are uncategorized?
We relabel every transaction properly and rebuild a chart of accounts that supports clean reporting and clear decision making.
Do you fix balance sheets too?
Yes. We clean up liabilities, assets, equity, and retained earnings. Most bookkeepers avoid balance sheet cleanup. We do not. It is the core of accurate reporting.
Ready for reports that finally make sense?
If you're unsure whether your file needs a rebuild or a cleanup, the Complete Check diagnoses the structure, the COA, and the patterns creating the confusion. It is the fastest way to see what your QuickBooks file is actually doing.
Start Your Cleanup