Can a bookkeeper fix books that were done wrong by someone else?
Yes, and this is actually one of the most common situations bookkeepers deal with. Whether a previous bookkeeper made mistakes, a family member was helping out and got in over their head, or you tried handling it yourself and things got away from you, the books can almost always be corrected.
The first step is a thorough review of your existing file. A good bookkeeper will go through your QuickBooks data or whatever software you’re using and identify what went wrong. The most frequent problems include transactions categorized to the wrong accounts, bank and credit card accounts that were never reconciled, personal expenses mixed in with business transactions, duplicate entries, missing transactions entirely, and opening balances that don’t tie to anything real. Sometimes the chart of accounts is so cluttered with random categories that the financial statements are unreadable.
Once the issues are identified, the actual catch-up bookkeeping work begins. This might mean recategorizing hundreds or thousands of transactions, removing duplicates, adding missing entries by going back through bank statements, and reconciling every account month by month. For books that have been wrong for multiple years, this can be a significant project. The longer the problems went unaddressed, the more time it takes to untangle everything.
The goal of a proper cleanup goes beyond making numbers look right on the surface. Your profit and loss statement should reflect real revenue and real expenses in the correct periods. Your balance sheet should show actual assets and liabilities. Without that accuracy, any decisions you make based on the numbers are built on bad information.
One thing that often surprises business owners is what the cleanup reveals. Maybe expenses were running higher than you thought in certain months. Maybe you have outstanding receivables that fell through the cracks. Maybe sales tax was calculated incorrectly because revenue was miscategorized. Fixing the books surfaces problems you didn’t know existed, which is ultimately a good thing even if it’s uncomfortable in the moment.
If you’re in this situation, don’t let embarrassment stop you from getting it handled. As a small business bookkeeper in Jacksonville, we see this regularly. It is far more common than most people realize. Business owners are great at running their businesses but accounting is a different skill set, and there’s no shame in needing someone to come in and set things straight.
The most important thing after the cleanup is making sure the same problems don’t happen again. That means having a qualified bookkeeper maintaining the books going forward or getting proper training so you can do it correctly on your own. Fixing the books once only helps if they stay fixed.
The First Coast's Trusted Bookkeeping Partner
The Next Step:
A Free Discovery Call
Tell us where things stand with your books. Whether you're months behind or just looking for reliable bookkeeping going forward, we'll give you an honest assessment and a clear price.
More Questions
How do I set up payroll for my first employee?
You'll need an EIN, Florida reemployment tax registration, new hire reporting, workers' comp coverage, and a way to calculate and deposit payroll taxes. Florida simplifies things because there's no state income tax to withhold.
Read answerHow do I know if my books are accurate?
Start by reconciling every bank and credit card account to the penny. Then review your balance sheet for anything that doesn't make sense, like negative balances or unexplained amounts. If your financial reports tell a story that matches what actually happened in your business, your books are in good shape.
Read answerWhat's the difference between QuickBooks Online and QuickBooks Desktop?
QuickBooks Online is cloud-based and accessible from anywhere, while Desktop is installed on a single computer. For most small businesses today, Online is the better choice since Intuit has been phasing out Desktop.
Read answerHow do I keep books for multiple franchise locations?
Use separate bank accounts for each location and track financials by location within QuickBooks Online. A unified chart of accounts and standardized processes let you compare performance across locations and meet franchisor reporting requirements.
Read answerHow do I track billable hours and tie them to my financials?
Use a time tracking method that connects directly to your accounting software so logged hours flow into invoices and revenue reports without manual rework. QuickBooks Online has built-in time tracking that handles this well.
Read answerWhat is a 13-week cash flow forecast and who needs one?
A 13-week cash flow forecast is a week-by-week projection of all the cash coming in and going out of your business over the next quarter. It gives you a rolling view of your actual cash position so you can spot shortfalls before they become emergencies. Any business dealing with uneven revenue, tight margins, or rapid growth benefits from having one.
Read answer