USA How To Fix Accounting Books

[FlyRoger]

The company I'm just started working for has a lot of errors in their QB for the past 5 years. What are some of the most common methods to straighten up their books? Anyone with experienced, can you please advise?

Thanks in Advance

 

[bklynboy]

I would start by getting the balance sheet right. You should be able to make sure that matches your assets and liabilities. From there you can determine your equity components. Once you get that right just fix the current year income statement (or last few years depending on reporting needs) and adjust accordingly. If the errors are limited to certain types of items then clearly just focus on those but you make it sound like everything is wrong which means rebuilding from scratch and like I said - get the balance sheet right first.

 

[Steve-LevelUp]

When I'm updating records like this, I start with the bank account on the balance sheet. Most activity ends up going through the bank account.

Completing the bank reconciliations for every month (one month at a time) will help ensure that all inbound and outbound cash receipts are captured. I find it a helpful first step.