Introduction

A Creative Services firm came to us with some very messy books. The client had been doing their books themselves, and didn’t know what they didn’t know… Sometimes things can get complicated, and frankly, just overwhelming.

This client had pretty much given up on their books.

Challenges Faced

• Not recognizing revenue properly.

• No real processes around accounting and financials.
• Chart of accounts doesn’t support the business properly
• Payroll not properly posted properly.
• And even having the payroll processed properly at all!
• Not having employee deductions properly recorded (think 401k/simple IRA filings).

We had come into contact with this client when reached out to us a few years prior with some questions about using the Xero software, and we graciously answered their questions and set them on a better path. But after all of these issues we touched on and a tax filing that “just didn’t feel quite right”, this client started to have a some doubts.

That uneasy feeling quickly grew to become full-blown anxiety!

• Will the IRS accept my return?
• Am I going to get audited?
• Will I go to jail?
• Will Martha Stewart be there?

The Solution

Sometimes clients are not ready to give up doing the books themselves because they don’t want to incur a monthly charge. Then they realize that they could be earning more money by focusing on what they do best and leaving the financials to the pros!

Accounting Elements took the time to sit down with the client, and make sense of all the projects that they had worked on.

• Made the switch from QuickBooks Online to Xero to better fit the client’s needs.
• The client did not have an online billing payment, Accounting Elements recommended and implemented Routable for greater efficiency and time savings.
• Switching payroll processing from ADP to Gusto saved the client $1,800/yr, and added greater efficiency, better ease of use, and improved customer service.

After working through tying out their accounts, correcting classifications, and dialing-in their financials, the following results we achieved:

Results Achieved

Accounting Elements uncovered several missed deductions and reporting errors that cost them nearly $10,000 in missed deductions and reporting errors!

The client was leaving so much money on the table, using Accounting Elements gave them an immediate ROI and they haven’t looked back since.

Finally, working in conjunction with their CPA, we helped the client amend their prior-year return and secure a $10,000 refund — money they would have donated to Uncle Sam!

Accurate books don’t just keep you organized—they make a real financial impact to your business and your state of mind!