Start with the underlying records
Bank reconciliation is part of our service. Our work also includes help setting up a general ledger or identifying problems in an existing ledger. If you are moving from informal records or inherited bookkeeping, explain where the information comes from and which balances or transactions are difficult to account for.
- Bank reconciliation
- General ledger setup and review
- Questions about existing balances
- Records for the period being reviewed
For the wider context, explore small business accounting services. You can also compare quickbooks cleanup with the questions described here.
Put the reporting in context
Income statements and balance sheets are included in the accounting service. The conversation can focus on which period the reports cover and the questions you want the reports to inform. Separate what is known from what still requires review, particularly when earlier bookkeeping is incomplete.
Choose the work and the rhythm
Our work includes monthly or quarterly support and the ability to add payroll, tax planning and preparation. An initial discussion should establish whether you need ongoing accounting, help with prior periods or connected services. The exact scope and responsibilities should be clear before work begins.
What a completed accounting period should help you answer
Start a report review with the business question behind it. You might want to understand why a cost category increased, whether customer collections match your expectations or which balances still need explanation. An income statement and a balance sheet describe different aspects of the records, so ask which report supports the question you are asking. Also confirm the period, the accounting basis and whether unresolved items could change the figures. Two reports with different dates or settings may appear to disagree even when the underlying issue is simply the comparison being made. For example, a full quarter should not be compared with a partial month without explaining that difference. A useful review can distinguish a real change in the business from a change in timing, categorization or reporting settings. Keep a short list of questions next to the reports rather than trying to solve every unfamiliar balance by editing entries. The aim is to understand the records well enough to decide what needs attention next.
Build a records packet that explains the transactions
The IRS explains that supporting business documents substantiate entries in the books and on a tax return. Its examples include invoices, paid bills, receipts and deposit records. A bank statement shows activity, but a transaction may also need a document explaining what was purchased or why money was received. Organize the records by period and identify gaps without guessing at missing details. For a new accounting relationship, include information about where the prior records end and who made the most recent adjustments. For ongoing work, agree how documents and questions will be collected so an unusual transaction does not become an unexplained balance carried into the next period. A concise note can be useful when the description on a statement does not identify the business purpose.
- Bank and credit card statements for the agreed periods, including accounts with little activity.
- Customer invoices, supplier bills and payment records that explain amounts still outstanding.
- Loan statements and purchase documents for equipment or other significant business assets.
- Payroll summaries and notes about money transferred between the owner and the business.
- Prior financial reports, the last completed reconciliation and a list of balances you want reviewed.
Example: a larger bank balance can raise several different questions
Example: a business owner sees more money in the bank at month end and assumes the month was more profitable. The account also received a loan deposit, while some supplier bills remain unpaid. The owner brings the loan paperwork, the bank statement and the unpaid bill list to the accounting discussion. Those records allow the questions to be separated: what activity belongs in the period's operating results, what the business owes and what cash is available for upcoming commitments. The example is a simplified illustration, not a diagnosis of your books or a recommended accounting entry. The same habit helps with less obvious changes. A large customer payment may relate to earlier work; an unfamiliar withdrawal may be a transfer to another business account. Give the reviewer the underlying documents and context instead of choosing a category solely because it makes a report look plausible. When a figure is provisional, keep that status visible until the question has been resolved.
Agree how recurring accounting connects with the rest of the year
Recurring accounting, cleanup and tax preparation have related purposes but different starting points. Cleanup addresses an identified issue or unfinished period. Ongoing accounting establishes a continuing rhythm for maintaining and reviewing the records. Tax preparation applies the relevant filing work to a particular year. If you need all three, ask how the periods and responsibilities will connect. A monthly arrangement may be worth discussing when you use reports frequently; a quarterly arrangement may fit a different reporting need. Neither choice removes the need to provide complete information. Identify who in your business can explain unusual transactions and who will review the completed reports. Ask how open questions will be tracked, what happens when documents arrive later and when a separate service conversation is needed. If your main concern is future cash timing or a spending decision, the cash flow or CFO service may belong in the discussion as well. These are questions for defining the engagement, rather than promises about turnaround or a particular reporting outcome.
What the books have to carry
Books are not only a record of the past. They have to produce the specific figures the returns and filings ahead of you will ask for.
- Schedule C figures for a sole proprietor, kept clean through the year
- Contractor payments tracked so 1099 reporting is a lookup, not a reconstruction
- Arizona transaction privilege tax activity separated from ordinary sales
- Payroll and owner draws recorded distinctly, which matters for an S corporation
- Records organized by state where activity crosses a line
Official resources
For general background on the topics above, consult these primary sources.
For bookkeeping in gilbert, az, see the Gilbert office and service area.