Key Areas a Bookkeeper Reviews in QuickBooks to Determine a Quote
When a QuickBooks ProAdvisor reviews a prospective client’s QuickBooks Online (QBO) account to determine a quote for services, specifically a cleanup. they focus on the following areas to assess the level of work needed:
1. Bank & Credit Card Reconciliations
✅ Are bank and credit card accounts reconciled up to the current month?
✅ Are there old unreconciled transactions that need to be corrected?
✅ Do bank balances in QuickBooks match actual bank statements?
Why It Matters:
Unreconciled accounts can lead to inaccurate financials, duplicated expenses, and tax issues.
2. Chart of Accounts Organization
✅ Is the Chart of Accounts structured correctly for the business type?
✅ Are there duplicate or unnecessary accounts cluttering reports?
✅ Are accounts used consistently, or are transactions miscategorized?
Why It Matters:
A messy Chart of Accounts can cause confusing reports and misclassified expenses.
3. Undeposited Funds & Open Transactions
✅ Are there old transactions sitting in “Undeposited Funds”?
✅ Are there customer payments that were received but never properly applied to invoices?
✅ Are there duplicate payments or transactions inflating income?
Why It Matters:
Leaving payments in undeposited funds overstates revenue, while unapplied payments distort financial statements.
4. Accounts Payable (Unpaid Bills & Vendor Payments)
✅ Are there unpaid bills in QuickBooks that don’t match real vendor payments?
✅ Do vendor balances reflect what is actually owed?
✅ Are there duplicate bill entries or expenses entered incorrectly?
Why It Matters:
Inaccurate vendor records can lead to overstating liabilities or missing deductions.
5. Accounts Receivable (Unpaid Invoices & Customer Balances)
✅ Are there outstanding invoices that were already paid but never closed?
✅ Are there old unpaid invoices that need to be written off as bad debt?
✅ Are customer deposits or prepayments recorded correctly?
Why It Matters:
Incorrect accounts receivable overstates revenue and misrepresents cash flow.
6. Expense & Income Categorization
✅ Are transactions categorized consistently?
✅ Are there expenses coded as "Ask My Accountant" or Miscellaneous?
✅ Are there personal expenses mixed with business expenses?
Why It Matters:
Improper categorization affects tax deductions and distorts profit & loss reports.
7. Payroll & Tax Liabilities (If applicable)
✅ Are payroll taxes and liabilities recorded correctly?
✅ Are there missed tax payments or overpayments?
✅ Are payroll expenses categorized properly?
Why It Matters:
Payroll errors can lead to IRS penalties and inaccurate expense reporting.
8. Number of Months That Need Cleanup
✅ How far back do records need to be cleaned up?
✅ Is the issue from the last few months or multiple years?
✅ Are previous tax filings affected?
Why It Matters:
The more months that need review, the higher the workload and cleanup cost.
9. Financial Report Accuracy
✅ Does the Profit & Loss Statement reflect true business performance?
✅ Is the Balance Sheet showing any red flags (negative balances, unexplained discrepancies)?
✅ Do financials align with tax filings and cash flow reports?
Why It Matters:
If reports are inaccurate, decision-making and tax filings are at risk.
Final Step: Providing a Cleanup Quote
After reviewing these areas, a QuickBooks ProAdvisor will:
✔ Provide a detailed estimate based on the complexity and number of months needing cleanup.
✔ Recommend ongoing bookkeeping services to maintain clean books moving forward.
✔ Offer a timeline for completion based on the depth of cleanup needed.
💡 Need a QuickBooks Cleanup? Let’s assess your books and get you back on track! Schedule a FREE consultation today.
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