Client Background
A construction materials retailer recently acquired an existing business but was struggling with unreliable financial records left by the previous owner. The new owner needed accurate books to apply for financing and understand the true profitability of the business. The client hired Development Theory to help with a QuickBooks clean-up for a lumber yard.
The Challenge
Inconsistent Bookkeeping: The previous owner had mixed personal and business transactions.
Duplicate & Misclassified Transactions: Many expenses and revenue entries were categorized incorrectly.
Inventory Tracking Issues: The QuickBooks records did not reflect actual inventory levels, leading to cash flow miscalculations.
Tax Compliance Risks: Unfiled and miscalculated sales tax entries created potential liabilities.
Our Approach
Transaction Review & Cleanup: Identified and removed duplicate and misclassified transactions.
Inventory Reconciliation: Updated records to reflect actual stock levels and ensure cost accuracy.
Chart of Accounts Optimization: Simplified account categories for clearer financial reporting.
Sales Tax Audit & Adjustments: Corrected tax liabilities and ensured compliance for future filings.
One-on-One Training: Provided guidance on how to maintain accurate records going forward.
The Solution
Delivered a fully reconciled QuickBooks file, eliminating inaccuracies.
Provided a financial summary to help the owner secure a business loan.
Implemented a new bookkeeping system to prevent future discrepancies.
Created an inventory tracking system integrated with QuickBooks.
Results & Impact
Reduced financial errors by 90%, ensuring clean, audit-ready books.
Secured financing within three months based on accurate records.
Improved cash flow management, preventing inventory shortages and over-purchasing.
Avoided over $1,200 in potential tax penalties by finding sales tax errors.
Client Feedback
"I couldn’t make sense of the numbers before, but now I have complete clarity. The cleanup process made it easy to apply for financing and run my business with confidence."
Development Theory Can Help Business Owners Like You
Are your accounting records a mess? Would you like help getting them straightened out? Our QuickBooks Clean-Up service gets one year of your historic accounting data balancing again. Don't wait until tax season to deal with your books!
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