Year end Complications

Client Profile: A steel products manufacturing business with revenues exceeding $1 million and eight employees including fulltime bookkeeper

Client Challenge: At year end it was discovered that the ending balances and account reconciliations in the accounting system did not balance with the monthly bank or credit card statements. Moreover the opening retained earnings balance did not agree with the accountant’s trial balance from the previous year. The accountant could not proceed with the preparation of the financials or the corporate tax return.

Our Solution: We were brought in by the accountant to analyze each bank statement, reconciliation report, and general ledger account and identified the discrepancies. We prepared and forwarded to the accountant’s satisfaction a list of adjusting journal entries that balanced the accounts perfectly.

The Results: The accountant completed the yearend review and prepared and filed the corporate tax return. We now meet regularly with the bookkeeper to review the books, correct any posting errors, and ensure that the data in the accounting system is accurate and reliable.

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