Bookkeeping, controller, and CFO services for small businesses in Chandler and Greater Phoenix.

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Can a bookkeeper fix books that were done wrong by someone else?

Yes, and this is one of the most common reasons small business owners look for bookkeeping help. Whether a previous bookkeeper made errors, you tried handling it yourself and things got away from you, or someone categorized transactions without really understanding what they were doing, the situation is almost always fixable.

The first step is a full review of what’s already in your accounting file. A bookkeeper will check your bank and credit card reconciliations to see if they were done correctly or done at all. Unreconciled accounts are usually the biggest red flag because if the balance in QuickBooks doesn’t match the actual bank statement, something went wrong somewhere. From there they’ll look at how transactions were categorized, whether entries are duplicated or missing, and whether accounts like loans, credit cards, and owner’s equity are set up properly. This is where having a QuickBooks ProAdvisor in Chandler matters because someone who knows QuickBooks inside and out can spot problems faster than someone just guessing.

The most common mistakes include transactions coded to wrong categories, personal expenses mixed in with business expenses, deposits recorded as income when they were actually transfers or loan proceeds, and payroll entries that don’t match actual payroll reports. These errors compound over time. One wrong entry in January throws off every month that follows.

How long catch-up bookkeeping takes depends on how far back the problems go and how messy things are. A few months of miscategorized transactions might take a couple of days. Years of incorrect bookkeeping with unreconciled accounts takes significantly longer. You’ll need to provide bank statements, credit card statements, loan documents, and any other records that help your bookkeeper piece together what actually happened versus what was recorded.

One thing to be prepared for is that corrected books sometimes change your financial picture in ways you didn’t expect. You might find out you were more profitable than you thought, or less. Corrected numbers might also affect prior tax returns, which is worth discussing with your tax accountant once the cleanup is finished. The good news is that once the books are cleaned up and done right, you have a reliable foundation to make real business decisions going forward.

Bookkeeping for East Valley Small Businesses

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More Questions

What bookkeeping does a trucking or logistics company need?

Trucking companies need bookkeeping that tracks fuel costs, equipment, driver pay, and per-load profitability. Standard small business bookkeeping doesn't cover IFTA reporting, cost-per-mile analysis, or the receivables delays common in freight.

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What's the difference between FIFO, LIFO, and weighted average inventory methods?

FIFO assumes you sell your oldest inventory first, LIFO assumes you sell your newest inventory first, and weighted average blends all costs together. The method you choose affects your reported profit and your tax bill.

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What's the threshold for issuing a 1099 form?

The most common threshold is $600. If you pay an individual, sole proprietor, partnership, or LLC $600 or more during the year for services, rent, or other qualifying payments, you're required to issue a 1099.

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What KPIs should a small business owner watch every month?

Focus on the handful that actually drive decisions. Revenue trends, gross profit margin, net profit margin, cash position, and accounts receivable aging tell you whether the business is healthy and where to look when something feels off.

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How does Arizona's transaction privilege tax work?

Arizona's Transaction Privilege Tax is a tax on the business for the privilege of operating in Arizona, not technically a sales tax on the buyer. The state rate is 5.6%, and cities add their own rates on top, so the total varies by location.

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What's the difference between cash flow and revenue?

Revenue is the total amount you earn from sales. Cash flow is the actual movement of money in and out of your bank account. A business can have strong revenue and still run out of cash.

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Jackrabbit Accounting is a Chandler firm serving small businesses across the East Valley and Greater Phoenix. Led by Sean Larsen, CPA, we provide bookkeeping, controller, and fractional CFO services backed by over a decade of corporate finance and Big 4 accounting experience.

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