Case Studies
A $75,000 Cleanup Before Tax Time
A consulting firm came in expecting a light cleanup. The Complete Check identified seventy five thousand dollars in errors that needed attention before tax preparation.
Your tax professional needs reliable records to work from. Reviewing unresolved bookkeeping questions before tax preparation can make that handoff much smoother.
A fast growing consulting firm came to us thinking their file needed a light cleanup. When we ran a Complete Check, the truth surfaced. Seventy five thousand dollars in errors were hiding in plain sight. Duplicate feeds. Misclassified payroll. Ghost checks. A chart of accounts that had not been touched since the day they opened QuickBooks.
Structural Review
What went wrong and how the damage showed up
In this file, duplicates, payroll classifications, old uncleared checks, and account categories contributed to the seventy five thousand dollar correction.
What Needed Attention
The bank account had been connected twice. Every transaction appeared two times, bloating income and expenses while still making the ending balance look correct. This masked the problem and created a massive gap between reports and reality.
How the Issue Developed
Payroll classifications affect reporting and deserve careful review against payroll and payment records. In this case, the categories needed correction before the tax handoff.
How the Pattern Showed Up
Older outstanding checks needed investigation to establish whether the recorded obligations were still valid.
What the Work Required
The chart of accounts had to be rebuilt entirely. Loan payments, owner draws, payroll expenses, and operating costs were all mixed together. Until the structure was corrected, the reports were unreadable and the CPA had no clear picture of profit.
The results once the truth finally surfaced
Once the duplicate feeds were removed, the payroll classifications corrected, and the chart of accounts rebuilt, the file settled into place. Seventy five thousand dollars in errors were corrected before tax season hit. The CPA could finally file with confidence, the business avoided penalties, and the owner regained clarity over their numbers.
A review helped this business move into tax preparation with clearer records. The scope for another file depends on what the diagnostic finds.
Frequently Asked Questions
What happens if QuickBooks gives my CPA the wrong info?
Incorrect records can complicate tax preparation. Your tax professional’s work depends on the agreed scope, so it helps to clarify who is reviewing and correcting the underlying books.
Do I need both a bookkeeper and a CPA?
The responsibilities can be handled by different people or firms. What matters is that day-to-day recording, reconciliation, review, and tax preparation are clearly covered.
Can the IRS really catch QuickBooks mistakes?
Yes. If income or payroll is misclassified, the IRS compares your records against what banks and vendors report. When it does not align, they reach out.
Can I fix QuickBooks errors myself before tax season?
You may be able to correct straightforward entries if you have the supporting records. More involved duplicates, reconciliations, or closed-period issues benefit from a planned review.
How do I know if my QuickBooks needs a cleanup?
If reports never match the bank, if your CPA keeps asking for clarifications, or if old uncleared transactions keep showing up, a cleanup is overdue. A Complete Check will show exactly what is wrong.
Ready for reports that finally make sense?
The Complete Check gives you a clearer picture of your QuickBooks file and a practical recommendation for what to do next. Cleanup or reconstruction is scoped separately, based on what the review finds.
Start Your Cleanup