Problem
Our client initially hired another bookkeeper to establish their accounting system from the ground up and manage their financial records for the fiscal year. Subsequently, their CPA prepared and filed their tax return without a thorough review and verification of the books, leading to a significant tax liability. This financial burden forced the client to take out a second mortgage on their house to pay their taxes that year.
Solution
As a patient at the client’s medical office, they became aware of my experience in bookkeeping and asked if I could take a second look at their account for potential discrepancies. I quickly identified basic recurring errors in the accounting of the owner’s flow of funds in and out of the business that the client, previous bookkeeper, and CPA all missed.
We redid their bookkeeping for that entire year, then resubmitted it to the CPA for the preparation of an amended 2021 tax return.
Outcome
The corrections and adjustments made to their records resulted in the client receiving a $30,000 tax refund. This outcome not only alleviated their immediate financial strain but also highlighted the value of an experienced Bookkeeper.
Conclusion
This case underscores a critical lesson: the importance of having an experienced and diligent bookkeeper who can identify and rectify fundamental errors that may be overlooked by clients and their CPAs alike. The discovery of a recurring basic mistake within the client’s financial records, which had been missed by all parties involved, highlights the necessity of expert bookkeeping services.
For expert bookkeeping and financial management services that protect and enhance your financial health, turn to The QuickBooks Guy.
Let us help you uncover and correct discrepancies that could save you thousands. Call 678-923-5904 or email Thequickbooksguy@gmail.com
