Case Study: From 12 Months Behind to Financial Clarity in 90 Days

At Tax and Accounting Services Company, Inc. (TASC), we work with real businesses—busy, growing, high-performing businesses. One of our recent clients, a fast-scaling service company with over $2 million in revenue, came to us with a situation that’s more common than most people think: 12 months behind on their books and no clear way to catch up.

Understanding the Problem

Their records were complex, as you’d expect from a business moving quickly. Here are some of the issues we encountered:

• Bank and credit card transactions hadn’t been reconciled.

• Loans on the books didn’t match actual balances.

• Principal and interest allocations needed to be reviewed.

• Several payments had no documented purpose.

  
  

Despite having solid internal operations and great top-line growth, the prior accountant had either skipped over these issues or made assumptions—adjusting loan balances by calling the differences “interest expense.” In some cases, the discrepancies were off by thousands of dollars, creating unnecessary exposure to IRS audit risk and penalties.

Additionally, there was a missed opportunity: a detailed, high-cost cost segregation study had been done, but the fixed asset list in QuickBooks hadn’t been reconciled to it. This oversight meant over $300,000 in depreciable assets weren’t being accounted for—resulting in missed deductions that could have legally reduced the company’s tax burden.

Our Comprehensive Approach

The first thing we did was work with the client to track down the right documents. Accounting isn’t magic. If you don’t have the right data going in, everything that comes out is wrong. That’s why we spent the early weeks gathering loan agreements, bank statements, cost segregation reports, and other backup. We don’t just categorize—we verify.

Bookkeeping must be rooted in documentation—not guesswork. For companies operating at this level, accurate financials aren’t a luxury—they’re a competitive advantage. After all, what purpose do financials serve if they aren’t reliable?

Once the materials were in place, our team went to work:

• Reconciled all bank and credit card accounts.

• Verified and corrected loan balances and payment allocations.

• Matched fixed asset records to the cost segregation study and adjusted depreciation accordingly.

• Rebuilt the accounting record using actual documentation—not assumptions.

• Reviewed the transactions for consistency with established accounting principles, making adjustments where necessary to ensure accuracy and compliance.

• Applied current tax regulations to ensure the most favorable outcome allowable under the law.

  
  

The Result of Our Efforts

Within 90 days, the books were up to date, reconciled, and properly supported. The client regained control of their financial data and positioned themselves to make smarter, more tax-efficient decisions going forward.

Why Our Approach Worked

At TASC, we don’t believe in one-size-fits-all packages. Every business is different, and so is the support they need. Here’s how we ensure success:

• We charge only for the time we spend. At the start of the engagement, we provide an estimate based on the time it will take to handle the ongoing monthly accounting. For cleanup or catch-up work, we usually offer a discounted rate—because we know we’re building a long-term relationship. There are no locked-in fees or vague deliverables—just professional accounting based on actual time and effort.

• We insist on source documents. We don’t guess, and we don’t “plug” numbers. If a loan balance doesn’t match the paperwork, or fixed assets can’t be verified, we address it directly—not with assumptions. While the AICPA doesn’t prohibit working with clients who can’t supply every document, it does require us to apply sound professional judgment, gather enough evidence to support the work, and document our procedures carefully—even in less-than-ideal circumstances.

• We do a detailed review for accuracy. We don’t just reconcile accounts—we step back and look at the big picture to spot errors that others might miss. We make sure the financials tell the truth, are consistent with accounting principles, and reflect the reality of the business. After all, it’s not the numbers that cause problems; it’s the ones that no one questioned.

• We develop a system for keeping the books clean and accurate. Once the backlog is resolved, we help put processes in place to prevent the same issues from coming back. Whether we’re doing the work or supporting your team, we focus on building a foundation you can rely on going forward.

  
  

The Importance of Accurate Financials

Even the most successful businesses can lose thousands to missed deductions, audit risks, or financial blind spots caused by messy books. Cleaning it up isn’t just about getting caught up—it’s about running stronger, making smarter decisions, and keeping more of what you earn.

Conclusion

In conclusion, the journey to accurate financials is essential for any business aiming for growth and stability. By addressing the underlying issues and implementing robust processes, companies can not only avoid pitfalls but also leverage their financial data for strategic advantages.

For those looking to improve their financial health, remember that working with professionals who prioritize accuracy and transparency can make all the difference.