I've got a client who desperately needs a loan. To get this loan, he needs reports but hasn't done his books. I have two weeks to do two years of bookkeeping and produce a balance sheet. He had a secretary balancing the bank and preparing the sales taxes plus a payroll service managing payroll. That is all that was done for the entire two years. My problem is the inventory is a mess and the books need to be on an accrual basis.
Here's where it gets complicated...or maybe not. I have zero experience with LLC's. He started an LLC in 2008. Had the taxes prepared for 08 & 09. He failed to keep books or pay income taxes during 2010 and 2011. In June of 2011 he started a new LLC with the old LLC as the Registered Agent. So materials (inventory) purchased under the old LLC is sold under the new LLC. The sales tax wasn't reported for the new company until 6 months after it opened. I've got credit card accounts and AP opened in both --- yet the inventory is all combined.
Can I just keep one set of books and simply change the name as of 1/1/12? The old LLC is giving all assets to the new LLC. The new LLC is accepting all liabilities of the old LLC.
I'm thinking I know the answer but any thoughts/opinions on the matter would be greatly appreciated. I'm probably making this more complicated than need be. But the inventory is a COMPLICATED mess because of the way it has to be broken down into types. And now I have to report it on an accrual basis without cost of goods sold figures for the past two years. Oh what a mess!
Here's where it gets complicated...or maybe not. I have zero experience with LLC's. He started an LLC in 2008. Had the taxes prepared for 08 & 09. He failed to keep books or pay income taxes during 2010 and 2011. In June of 2011 he started a new LLC with the old LLC as the Registered Agent. So materials (inventory) purchased under the old LLC is sold under the new LLC. The sales tax wasn't reported for the new company until 6 months after it opened. I've got credit card accounts and AP opened in both --- yet the inventory is all combined.
Can I just keep one set of books and simply change the name as of 1/1/12? The old LLC is giving all assets to the new LLC. The new LLC is accepting all liabilities of the old LLC.
I'm thinking I know the answer but any thoughts/opinions on the matter would be greatly appreciated. I'm probably making this more complicated than need be. But the inventory is a COMPLICATED mess because of the way it has to be broken down into types. And now I have to report it on an accrual basis without cost of goods sold figures for the past two years. Oh what a mess!