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Opalista

New Member

10/24/08 1:33pm PDT
Viewed by asker 02/14/09 11:23am PST

Should I run screaming from this engagement?

I recently picked up a client -- construction company -- that is in the process of selling off part of its business. I am in the process of reviewing their QuickBooks files, which are in a word, in a complete shambles. They have been in QuickBooks since mid-March but in business for about 6 years. They have 7 checking accounts, there are lots of transfers to and fro, lots of checks written, some recorded some not, some recorded in the wrong accounts, some from months ago still notated "to print", electronic funds transfers not recorded. Truly, you pick up a bank statement and you have no idea this bank account is in any way related to the account in QuickBooks. I'm wondering if it would be better just to trash this company's files and start all over again. Has anyone ever experienced this sort of thing, and what did you do? The first account I picked up, there were transfers not recorded, and QB won't let me record transfers, but I need them in there in order to do the reconciliation. What to do?

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7 Replies

DemosL

Allstar

10/24/08 9:12pm PDT

Methodically use the bank statements to try to make the Quickbooks data accurate. If it's a complete mess and you can't tie anything together, you may have to start new files.

Demos Loizides
Demos Loizides, LLC
"QuickBooks Expert Can Fix Your Bookkeeping Mess"
http://quickbookspro-nova.com

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LeeAssociates

New Member

11/04/08 5:17pm PST

I completely understand what you are going through. I used to work for a roofing company that had a similar situation. I created a vendor called "transfer" to show that a transfer was processed from one account to another. I have several clients that transfer funds from an escrow account to checking.

I would simply start with the actual paperwork and bank statements. File all receipts and paperwork for that specific account in a binder or file to sort, then take one account at a time.

Good Luck!!! :)

Crystal

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Franyora

New Member

12/16/08 2:56pm PST

Note: I have never came across "any" general contractor clients of mine who were not a complete mess 'before' using me. Look at this advantage, if they have a high volume of business, paying you should not be a problem, and when you are finished organizing, fixing and implementing a functional system, you will have made yourself their accounting HERO! Their loyalty will be to you for years to come as long as you continue to show them how far your knowledge has taken them from the disaster they used to call "their books" lol

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BookkeepingSpecialty

New Member

01/07/09 11:39am PST

Have you tried creating a clearing account in the chart of accounts instead of a vendor for the transfers. I agree that most contractors' books are a mess. I usually go back and start from the last place they were correct (matched the bank statement). If there isn't a place that they match, you might as well scrap them and start fresh using the physical checks / deposit slips and bank statements (it may actually be quicker and easier than trying to figure out the mess.)

Good luck!

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djo

Accountant Community AllStar

01/09/09 8:37am PST

Write a check and make a deposit between the accounts. It's simple, clean and traceable. To transfer from the operating account to the payroll account - Write a check out of the operating account to ABC Roofing Payroll Account. Debit the Payroll account, and the check will credit the operating account. If the transfer is made via telephone, instead of a check number use xfer of some other notation in the check number.

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KarriE

New Member

02/09/09 10:57am PST

The solution

I too get alot of this type of record keeping from small business owners. I had a new client walk in yesterday with a box of receipts both personal and business. 3 bank accounts and none of them reconciled. She has tried to give quickbooks a go and after looking at everything I decided we needed to start from scratch for the whole year. This gives me the opportunity to sit down with them and show them exactly how to do this. I've given my yahoo messenger id, my email and of course my phone so they can call at any time with a question. I had to estimate how long I thought it would take to enter and reconcile all bank accounts. I estimated it at an hourly rate and gave the client the option of paying me or they can learn it correctly. I let them know that this really will save them money and it puts them in control. If they don't want to do it monthly then I make sure they understand that they are only putting off bookkeeping fees. I wouldn't shy away from the engagement as it sounds like a great opportunity to bring this company current which will help them make more informed daily operating decisions.

If your client has a lot of entries that are in there you may be able to do some journal entries and at least reconcile it or put things in a clearing account and dealt with as you can with the client. Some clients need a lot of hand holding to get them where they need to be but these are the types of clients that you can keep for years as they will rely heavily on you.

At the end of the day you have to weigh what will save your client the most money... starting over or journal entrying your [removed] off to work with what they have. Be honest with the client and give them choices on how to fix the problem and make it possible for them to have financial statements that up to date and accurate.

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Michelle Long CPA

Allstar, Accountant Community AllStar

02/14/09 5:50am PST