I’m going to talk briefly here about something I’ve talked about before, but with new developments, you’ll want to know about: the Employee Retention Credit.
(And then I’ll get on to a bookkeeping matter I hope every Southeastern FL business owner understands.)
I banged this drum quite a bit in the start of the year because of the IRS’s crackdown and the withdrawal option they made available for anyone who falsely submitted a claim.
Since then, the IRS has continued to investigate the claims and found that a number of them were false. That spells trouble for the businesses that got swept up in the ERC claim craze.
But, the IRS has decided to extend another chance for you to take back that ERC claim. They recently re-opened the claim withdrawal option. And if you know you claimed things incorrectly (or even suspect you did), the voluntary disclosure program should be a high priority for you.
If you’re not sure about your claim and whether you should withdraw it, we’re happy to put our well-trained eyes on it:
calendly.com/ralfheyer/30-minute-meeting
And now, a little business owner story time…
When Amanda started her business, she took care of the bookkeeping herself. And she was really good at it.
But then things got more complicated and she got more busy so she hired a part-time bookkeeper. This helped, but the bookkeeper was incorrectly applying the payments to invoices in the books software and things got messy.
So she decided to go back to tracking things herself. But with staff to manage and sales to process and a business to build … you can guess what happened.
Sound like a story you know?
It’s not uncommon for a business’s books to be in various states of disarray. It happens. And you know it’s a problem, but dread what it would involve to get help. What a bookkeeper does, what it would cost, questions that you don’t have answers to… it’s enough to make you want to just maintain the bookkeeping status quo.
Good thing you have me to help you out here…
What a Good Southeastern FL Bookkeeper Does for Your Business
“Organizing is what you do before you do something so that when you do it, it is not all mixed up.” – A.A. Milne
Bookkeeping cleanup usually becomes necessary for two main reasons: error and neglect. See how you do on the following little quiz:
- Do you have expenses that have been incorrectly entered in QuickBooks?
- Do you have expenses or income that hasn’t been tracked at all?
- Has an employee ever misclassified an expense?
- Ever forget to record a transaction?
- Have your business books been reconciled at least on a monthly basis?
- Do you audit your financial statements regularly to make sure everything that needs to be recorded, is being recorded?
Whatever your reasons, you might be realizing right now that you’re sitting on a financial mess. This is probably why you’re having a hard time getting an accurate picture of your finances.
So let’s go over what a bookkeeper does during a bookkeeping cleanup that you now know you desperately need.
The general process
Basically, we’re going to sort through your financial records to make sure your bookkeeping software is up-to-date and error-free. This can take some time, especially if your records are extensive or haven’t been looked at in a while.
The process usually starts with reconciling your income records, going one month at a time, then moving onto payroll, expenses, and other business transactions. We’ll check every transaction, compare it with your bank and credit card statements, and make sure everything adds up correctly. This can take anywhere from a few hours to hundreds of hours, depending on the state of your books and the complexity of your business.
And we’ll probably have some questions for you—like how far back do we need to dig, when were your books last reconciled, or specific questions about individual expenses or income.
The goal is to get a clear understanding of what’s needed and what your business does.
Once we’ve sorted through everything, we’ll give you some recommendations for better systems and processes to keep things running smoothly in the future. This might include tips on how to avoid certain errors, how to streamline your bookkeeping tasks, or how to correct inefficiencies in your current setup. Everything is game here.
Documents we’ll need
- Bank statements
- Payroll records
- Expense receipts
- Credit card statements
- Tax returns
- Accounts payable/receivable records
- QuickBooks or other bookkeeping software access
Costs to expect
The cost of a bookkeeping cleanup can vary. Some bookkeepers charge an hourly rate, while others might offer a fixed fee for the whole job.
While it might seem like one more expense, remember that businesses with messy books are more likely to face audits. And trust me, the cost of an audit—including fees and potential penalties—can be way more than the cost of cleaning up your books in the first place.
Your options
If you let your books stay the way they are, you’re taking on a lot of risks. You’re more likely to face an audit, your tax filings or refunds could be delayed, and it can hinder your ability to make informed business decisions.
And of course, if you ever want to sell your business or bring on investors, messy books can scare them away. Not to mention the stress for both your staff and yourself, as you’re constantly trying to figure out what’s going on financially.
What a bookkeeper does during a cleanup isn’t just about getting your numbers in order. It’s about protecting your business, making sure you’re compliant with tax laws, and setting you up for smoother operations in the future.
Now that you have a clearer picture of what a bookkeeper does during a books cleanup, you can understand why it’s so essential. If you think your Miami Metropolitan business might need this, don’t hesitate to reach out: (786) 693-9358
Here to help,
Ralf Heyer