01
The challenge
No returns had been filed since formation, so every year had to be built from the first transaction forward. The founder was cautious about cost and wanted proof of quality before committing to six years, two entities and every bank, card and loan account.
02
Our approach
- Start at formation. The first QBO entry was late 2020, so 2020 was treated as a short year and opening balances set from formation documents.
- Phase 1 as proof. 2020 and 2021 were completed for both entities first, so the founder could review quality before the remaining years began.
- Full reconciliation. Bank, card and loan accounts were reconciled monthly, with loan amortization schedules splitting principal and interest.
- Intercompany clarity. Transfers between the LLC and the corporation were recorded as due-to and due-from balances that agree in both files.
- Simple pricing. A flat monthly-of-books fee for the combined group, agreed in writing and run through the client's preferred platform.
03
Results delivered
- Six years of reconciled books for both entities.
- Tax-ready trial balances so the unfiled returns could be prepared in sequence.
- Intercompany balances that agree between entities.
- A clean base for ongoing monthly bookkeeping.
04
Frequently asked questions
As far as records allow. If returns were never filed, cleanup should start at formation because each year's closing balances become the next year's opening balances.
Returns built on unreconciled books risk missed income, missed deductions and balance sheets that do not tie, which draws IRS questions later.
Usually per month of books or per entity-year, with complexity set by transaction volume, number of accounts and how many records are missing.
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