Bookkeeping Clean-Up Services in Houston
Bookkeeping clean-up services bring organization to a business’s financial records – either on a one-time basis or as an ongoing service. For Houston business owners, bookkeeping clean-up services provide several competitive advantages, including:
- Accurate and detailed financial records
- Improved financial and tax reporting processes
- A clear picture of your organization’s financial health and better decision-making insights
- A strong foundation to build additional bookkeeping and accounting processes on
A reputable bookkeeping clean-up service untangles the confusion and guesswork in your ledgers, bank accounts, credit lines, invoices and other financial records.
Signs Your Houston Business Needs Bookkeeping Clean-up Services
Inconsistent bookkeeping practices may go unnoticed for a while, but as soon as your organization takes a deeper look into its finances, these foundational weaknesses will emerge. If any of the following are issues with your company’s records, it’s time to partner with an experienced bookkeeping service:
Financial records cannot be easily produced in detail
If your organization can’t develop a clear financial sheet or ledger, there are gaps in your reporting.
Unexplained or unusual bank activity is present
If your company’s bank transactions cannot be reconciled, there are reporting inconsistencies present or potential fraud. Take care to avoid making personal transactions out of a business account, as intermingling business and personal funds is a major liability risk.
Invoices or receipts have gone missing
If your business cannot produce its receipts (essential for tax preparation) or its invoices (essential for prompt payment), its bookkeeping practices are holding profitability back.
Tax preparation relies on guesswork
If your organization cannot prepare accurate tax returns in a timely fashion, or cannot thoroughly prepare for a potential audit, it is vulnerable to additional, unaccounted for tax liabilities – as well as any penalties.
Your business can’t get a hold of its cash flow
If your business is dealing with cash shortfalls and cannot reliably fund its operations, your finances need a thorough inspection.
A bookkeeping expert can resolve the above issues and give you a firm view of the organization’s financial picture.
What Do Bookkeeping Clean-up Services Include?
Bookkeeping clean-up services typically include the following:
- Financial record review – Your bookkeeper will analyze the financial records you do have available to organize your record-keeping practices. This includes reviewing your bank statements, credit card accounts, ledgers, past financial statements, receipts, transaction histories and more. Bookkeeping experts can develop financial sheets from the documentation you have available.
- Transaction reconciliation – Your bookkeeper will review your organization’s bank accounts to ascertain transaction histories, which are then compared to the company’s books for reconciliation purposes. The goal is to identify discrepancies and determine what failures (or possible fraud) are leading to these discrepancies. This process is repeated for credit card accounts.
- Error corrections – If data entry errors or errors of omission are present, your bookkeeper will correct these errors while reconciling transactions and reviewing records. Errors can also be corrected on tax documentation, including previous tax returns.
- Reclassifying transactions – If any transactions have been erroneously classified, it may have significant tax implications. During bookkeeping clean-up services, your bookkeeper will review all transactions to verify they are properly classified for tax purposes.
- Cleaning up the chart of accounts – Your company’s chart of accounts is a diagram of its bank accounts, their intended purpose and access details (such as who has access or the account’s credentials). When bookkeeping practices are lacking, it’s common for the chart of accounts to slide into disorganization. Your bookkeeping clean-up service can correct this.
- Implementing best accounting practices – Ideally, your organization won’t have the same issues with its bookkeeping practices going forward. To ensure this is the case, your bookkeeper will implement improved bookkeeping software, along with tighter data reporting methods, tax compliance and payroll practices.
Together, these catch-up bookkeeping services will bring your books up to date and protect your organization from future lapses in accounting practices.
Bookkeeping Clean-up Services Can Help Clear Up Your Financial Picture
Lax bookkeeping practices will hold your business back and potentially expose you to liability. And the longer you wait to correct them, the worse the problem will get. Eventually, inconsistent bookkeeping will lead to the kind of financial instability that can result in a failed business.
Bookkeeping clean-up services are designed to get your bookkeeping practices back in line so you know where the company stands financially. On a one-time basis, these services will restore accuracy to your ledgers, banks and financial situation, so your organization can use it as a head start to permanently solidify its accounting processes.
Many expert bookkeepers can provide ongoing bookkeeping services designed to protect businesses from lapsing back into poor accounting practices. These bookkeeping services can save business owners considerable time and money and provide peace of mind that the company’s financial reporting is accurate. Whether your business is still in its early stages or you’re looking to sell it, precise bookkeeping will facilitate the next step for your organization.
