Bookkeeping, payroll, and controller services for small businesses in Scottsdale and Greater Phoenix.

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My previous bookkeeper made errors, how do I fix them?

Start by figuring out what kind of errors you’re dealing with. Not all bookkeeping mistakes carry the same weight. A miscategorized office supply expense is annoying but harmless. An unreconciled bank account or missing transactions that affect your tax return is a bigger problem that needs immediate attention.

Pull your bank statements and compare them to what’s in your accounting software. If the bank balance doesn’t match the book balance, that’s your first priority. Unreconciled accounts mean transactions are missing, duplicated, or entered incorrectly. This is the foundation. Nothing else is reliable until the bank reconciliations are clean.

Check your accounts receivable and accounts payable. Are there invoices marked paid that weren’t? Vendor bills entered twice? Customer payments sitting in limbo? These errors affect your cash flow picture and can lead to awkward conversations with vendors or clients who you think owe you money.

Look at how transactions were categorized. Common mistakes include mixing up expense categories, posting personal expenses to the business, or dumping everything into miscellaneous. Category errors don’t change your total profit, but they distort your financial picture and can affect which tax deductions you’re claiming.

Review any journal entries from your previous bookkeeper. Someone who didn’t understand what they were doing might have made adjusting entries that masked problems rather than solving them. Random journal entries with vague descriptions are red flags worth investigating.

Once you understand the scope, decide how far back to go. If errors span multiple years and filed tax returns, you may need to discuss amendments with your CPA. If it’s just the current year, you have more flexibility to fix things before tax time.

For minor category fixes, you can often clean these up yourself if you’re comfortable in your accounting software. Re-categorize transactions, merge duplicate entries, and add notes explaining the corrections. For bank reconciliation issues, missing transactions, or anything affecting past tax returns, consider getting professional help. Catch-up bookkeeping exists specifically for situations like this. Trying to untangle complex problems without experience often creates new errors on top of the old ones.

When you bring in help to clean up, expect some diagnostic time upfront. A good bookkeeper will need to review what’s there before they can fix it. This isn’t wasted time. It’s the only way to understand the full picture and avoid missing issues that surface later.

Moving forward, stay involved enough to catch problems early. Review your bank reconciliation monthly. Ask questions if something doesn’t look right. Many Scottsdale bookkeeping services will walk you through your reports so you understand your numbers well enough to spot when they’re off. You don’t need to do the bookkeeping yourself, but knowing your financials at a basic level protects you from ending up in this situation again.

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More Questions

Why is my COGS wrong on my e-commerce profit and loss?

COGS errors in e-commerce usually come from how inventory is tracked. If purchases go straight to COGS instead of through an inventory account, or if your ending inventory balance is wrong, your cost of goods sold won't match reality.

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Where can I find a bookkeeper in Scottsdale?

Scottsdale has plenty of bookkeeping options from solo practitioners to established firms. Look for someone with experience in your industry, clear pricing, and the ability to explain your numbers in plain terms.

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How do I reconcile Toast POS with my accounting?

The key is understanding that Toast deposits net of fees, not gross sales. You need to record your full sales amount, then separately track processing fees and tips to match what actually hits your bank account.

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How do I organize my receipts and records after falling behind?

Start by gathering everything in one place, then use your bank statements as the backbone for reconstruction. You don't need every receipt to get your books in order. Focus on recent months first and build a simple system to prevent the backlog from happening again.

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How often should my books be updated?

Monthly is the minimum for most small businesses. Businesses with high transaction volume or cash-intensive operations benefit from weekly updates. The right frequency depends on how quickly you need financial information to make decisions.

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How long does it take to clean up QuickBooks?

Most QuickBooks cleanups take 2 to 6 weeks. Timeline depends on how long the books have been neglected, transaction volume, and whether your records are organized or need reconstruction.

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