Construction Company
Clean-up + Monthly Bookkeeping
THE CLIENT
A small construction company based in Calgary, had been operating successfully for several years. However, due to rapid growth and a lack of proper financial oversight, the company fell behind on its bookkeeping.
Over a period of three years, financial records were not maintained accurately, leading to disorganized financial statements, difficulty in tracking expenses, and an inability to make informed financial decisions.
OBJECTIVES
Reconstruct accurate financial records for the past three years.
Ensure all tax filings are completed and submitted.
Implement a sustainable bookkeeping process for ongoing financial management.
Provide financial insights to support strategic decision-making.
SOLUTION
1. Initial Assessment and Planning
Conducted a thorough assessment of the existing financial records and identified gaps.
Developed a detailed project plan with milestones and deadlines for each phase of the catch-up process.
Collaborated with the company’s management and staff to gather all available financial documents, including bank statements, receipts, and invoices.
2. Reconstruction of Financial Records
Organized and categorized all financial documents by year, month, and transaction type.
Entered and reconciled transactions in the accounting software (QuickBooks Online) to recreate accurate financial statements for each year.
Identified and corrected discrepancies, such as duplicate entries or misclassified expenses.
3. Tax Compliance
Worked with a tax professional to prepare and file back taxes for the past three years.
Ensured that all necessary forms and filings were submitted accurately and on time.
4. Implementation of Ongoing Bookkeeping Processes
Designed and implemented a streamlined bookkeeping process to ensure future financial records would be maintained accurately and in real-time.
Established a schedule for regular financial reviews and tax planning to avoid future compliance issues.
5. Reporting and Strategic Insights
Provided detailed financial reports, including profit and loss statements, balance sheets, and cash flow analyses.
Offered strategic financial insights to help the company plan for future growth, manage cash flow, and make informed business decisions.
RESULTS
The project was completed within six months, bringing the company’s financial records up to date. Key outcomes included:
Accurate Financial Statements: Accurate and up-to-date financial statements for the past three years, providing a clear picture of the company’s financial health.
Tax Compliance: All past-due tax filings were completed, and penalties were minimized through negotiations with tax authorities.
Improved Cash Flow Management: With accurate financial data, the company was able to manage its cash flow more effectively, ensuring that bills were paid on time and financial obligations were met.
Informed Decision-Making: The company’s management gained valuable insights into the business’s financial performance, enabling better strategic planning and decision-making.
Sustainable Bookkeeping Practices: The new bookkeeping processes ensured that the company’s financial records would remain accurate and up-to-date moving forward, preventing future backlogs.
TAKEAWAY
The successful completion of this bookkeeping catch-up project not only resolved the company’s immediate financial issues but also set the foundation for more robust financial management practices. The company is now in a stronger position to grow and thrive, with the confidence that its financial records are accurate and compliant.