Our books have not been touched properly in over a year. How bad is the fix?
A year behind feels worse than it usually is. Most businesses in this situation assume the fix is going to be painful, expensive, and embarrassing. In practice, it is almost always manageable once someone actually looks at what needs to happen.
What determines the scope is not just how long the books have been neglected. It is the number of bank and credit card accounts that need reconciliation, how many transactions ran through those accounts, and the condition of your records. A single-entity business with one bank account and one credit card that simply stopped reconciling is a lighter project than a business with five accounts, inventory, and records scattered across folders and inboxes.
We scope cleanup and catch-up work in three honest levels based on these factors. A light cleanup might be appropriate when the books just need a few months of reconciliation and minor corrections. A moderate cleanup handles more months behind, more accounts, and some work untangling misclassified transactions. A heavy cleanup applies to situations with significant reconstruction needed, missing documentation, or multiple entities.
Before work starts, you get a clear understanding of which level your situation falls into, what the price will be, and the timeline. No surprises.
The process itself follows a logical sequence. First, we reconstruct and reconcile every account so the numbers reflect what actually happened. Then we correct the errors and misclassifications that accumulated. The result is a set of reliable financial statements you can actually use for decisions, taxes, and financing.
The last step matters as much as the first. Once the books are clean, we transition into a monthly accounting and advisory rhythm so the problem does not repeat. Cleanup work has limited value if the books drift back into the same condition six months later. The goal is a foundation that stays solid.
If you have been avoiding this because you do not know how bad it will be, the honest answer is that the only way to know is to look. Schedule a consultation and we will give you a straight assessment of what the cleanup involves and what it will take to get your books to a place you can trust.
Hawaii's Trusted Accounting and Advisory Partner
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Schedule a call to talk through your business and see if we can help. A real conversation about where you are and where you're headed.
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More Questions
How do I know which accounting tier my business needs?
The right tier depends less on revenue and more on how you use financial information. Core delivers reliable monthly books. Growth adds accrual accounting and quarterly review conversations. Managed means monthly attention and KPI tracking.
Read answerWhat is class or location tracking, and when does a business need it?
Class and location tracking lets you tag transactions by division, location, or service line so your financial statements can show which parts of the business make money. It becomes worth the discipline once you're running meaningfully different lines or sites.
Read answerWhy does my profit and loss disagree with my bank balance?
They measure different things. Your profit and loss shows economic performance over a period. Your bank balance shows cash at a single moment. Both are accurate, but several items create legitimate gaps between them.
Read answerWhy is Hawaii's GET not just a sales tax with a different name?
GET is levied on the business's gross receipts, not collected from customers. It covers nearly everything including services and B2B activity, and it allows no deduction for expenses. You owe GET even in a losing month.
Read answerWhat does the first ninety days of an advisory engagement look like?
The first step is confirming the books are reliable enough to support advisory work. If cleanup is needed, that comes first. Once the foundation is solid, the engagement moves to understanding how your business makes money, what decisions are ahead, and establishing a working rhythm.
Read answerWhat is a cash flow forecast, and why would a profitable business need one?
A cash flow forecast is a forward-looking view of money coming in and going out over the weeks and months ahead. Profitable businesses need one because profit on paper doesn't mean cash in the bank, and timing differences can create cash shortfalls even when the business is healthy.
Read answer