I have recently acquired a client with four related businesses. The books are maintain in quickbooks by one individual and they are a complete mess and have been for years. In particular, the intercompany accounts are totally wrong and entries on one company were not book on the other, cash advances haven't been properly accounted for etc. For instance, one entity pays the payroll of all companies and another company pays the health insurance for all companies. They did not book the transactions correctly and the due to/due from accounts are way off.
I cannot go back to fix years worth of these errors. What is the best way to clean this, and other issues, up. Tax considerations aside, can I just close all I/C accounts and reconcile the cash and payroll liabilities with entries to RE and start over?
I cannot go back to fix years worth of these errors. What is the best way to clean this, and other issues, up. Tax considerations aside, can I just close all I/C accounts and reconcile the cash and payroll liabilities with entries to RE and start over?