TOTALLY INCOMPETENT TP BOOKKEEPER

[mrichman333]

I have a schedule C client this is the tax information his bookkeeper send me.

 

So I'm all done, but in the end I'm showing a very significant loss, like 80,000. So I am going to go over this with ___

 in the morning, figure out what his estimate for "cash to day laborers" and such, then I'll be able to send it over. (Wasn't a good year)

started out with.     124,370
Deposits             + 1,197000
Total checks.      - 1,299400
Ending balance.        22,051

He'll be lucky to break even for the year

 

I pointed out to her that Money ____ takes out of the business checking is NOT a business expenses, nor is personal expenses that are written on the business account.  And that is why she should not just add all deposits and subtract all withdraws to get his profit. 

 

[ILLMAS]

How were last years record presented to you?

[mrichman333]

How were last years record presented to you?

 

 

She came up with the numbers the same way.  I made her go through all the checks and deposits and put them into categories and I went over everything with her.  I had to file a extension.

 

This is the third year now.  The TP knows she is tonally incompetent but they have been friends for many years.  And I think "with benefits"  I suggested quickbooks, be he doesn't think he can get her to use it.

 

It's hard to believe someone with gross receipts of over a Million $ only made $22,000 and that's before depreciation.  That alone should have clued her in.

 

And how the heck am I supposed to prepare a return with that information

[Lion EA]

Try a simple spreadsheet for her with as few categories as you can, including things like To Owner, Cash, New Equipment,....  Tell him to hire you quarterly to review her bookkeeping.

[schirallicpa]

I think with half of our clients, we resort to the bank stmts to make some sort of sense of their bookkeeping.  I wish someone would blow-up Quickbooks.  People get that and they think they are all set.  Register balance says -30K, inventory negative, payables of over $100K, sales showing @ 2x the deposits, and no concept of what receivables were at the end of the year.  But it's "all in Quickbooks so it should be good."  :wall: :poop:

[mrichman333]

I think with half of our clients, we resort to the bank stmts to make some sort of sense of their bookkeeping.  I wish someone would blow-up Quickbooks.  People get that and they think they are all set.  Register balance says -30K, inventory negative, payables of over $100K, sales showing @ 2x the deposits, and no concept of what receivables were at the end of the year.  But it's "all in Quickbooks so it should be good."  :wall: :poop:

 My thinking is it's a whole a hell lot better than what she gives me.

[mrichman333]

Try a simple spreadsheet for her with as few categories as you can, including things like To Owner, Cash, New Equipment,....  Tell him to hire you quarterly to review her bookkeeping.

 

I think she has a spreadsheet program but wont use it.

[mrichman333]

I forgot to mention, it took her three weeks to get me this information

[Margaret CPA in OH]

If she won't use a spreadsheet program, I think Staples still has 13 column accounting paper available :)

[mrichman333]

If she won't use a spreadsheet program, I think Staples still has 13 column accounting paper available

 

OMG I remember those.

[Catherine]

I still have clients that use ledger paper and their records are some of the best I get.

 

Why is it that people who can NOT balance a checkbook think they can run a business and do the bookkeeping all by their lonesome?!?!

[RitaB]

My thinking is it's a whole a hell lot better then what she gives me.

My thinking is you will never get anything accurate out of this particular person unless some serious training and/or arm twisting occurs. Software, spreadsheet, columnar pad, legal pad, stationary with stickers. It ain't gonna matter. Not a whole hell lot. :)

[RitaB]

Why is it that people who can NOT balance a checkbook think they can run a business and do the bookkeeping all by their lonesome?!?!

This guy has help with benefits. What could go wrong?

[Gail in Virginia]

I have a client that buys a Dome book where the left side of each page lists every check and deposit, and the right side gives you a place to total by the categories for the month, the year to date before this month, and the year to date after this month.  At the end of the year, he has everything listed in one place and good totals to give me.  Everything does not have to have a technological solution.

[RitaB]

Yep, and you could even tell her, "Here are columns for groceries, house payments, personal utilities, boat slip, DirecTV, Zappos shoes, etc." The less technology the better for some folks, in my opinion.

[mrichman333]

My thinking is you will never get anything accurate out of this particular person unless some serious training and/or arm twisting occurs. Software, spreadsheet, columnar pad, legal pad, stationary with stickers. It ain't gonna matter. Not a whole hell lot.

 

Yep.  He needs to get rid of her. 

[BulldogTom]

Yep.  He needs to get rid of her. 

You can't make a blanket statement like that with out knowing the "benefits" .   You are only looking at the tax and bookkeeping side of this.  The man has to have a life as well, and she may be worth keeping around for that life.

 

Tom

Newark, CA

[mrichman333]

You can't make a blanket statement like that with out knowing the "benefits" .   You are only looking at the tax and bookkeeping side of this.  The man has to have a life as well, and she may be worth keeping around for that life.

 

Tom

Newark, CA

 

She is a looker

[kcjenkins]

Seriously, from the sounds of it, a Dome book might be a workable solution.  They are cheap, but the simple structure works for someone with no accounting background, and unlike QB, they can't really mess them up.  At least it gives you a better 'starting place' than just her lists.  

[RitaB]

She is a looker

Well, there ya go. I once had a young lady body builder come in my office on January 31 wanting 1099-Misc Forms to fill out for her client. I got the impressive I was the first person on earth to tell her I was out of forms and not offer to take her to Staples and purchase forms for her.

[BulldogTom]

If Brooke Shields came to my office looking for a form, I would turn the whole office upside down looking for one.  Fat chance of that ever happening.  But Brooke could be my incompetent bookkeeper all she wants (until my wife kicks her out of the office!!!!!)

 

Tom

Newark, CA

[WITAXLADY]

but with the dome book you have to add the numbers by hand, QB adds it up for you - main reason they will not switch, right or wrong!

[RitaB]

Well, there ya go. I once had a young lady body builder come in my office on January 31 wanting 1099-Misc Forms to fill out for her client. I got the impressive I was the first person on earth to tell her I was out of forms and not offer to take her to Staples and purchase forms for her.

* impression

I am never, ever going to get a post right on the first try.

[Richcpaman]

Well, there ya go. I once had a young lady body builder come in my office on January 31 wanting 1099-Misc Forms to fill out for her client. I got the impressive I was the first person on earth to tell her I was out of forms and not offer to take her to Staples and purchase forms for her.

Rita:

 

Something that she was going to have to learn eventually....

 

Good for you.

 

Rich

[RitaB]

Rita:

 

Something that she was going to have to learn eventually....

 

Good for you.

 

Rich

Well, I would like to say I was just trying to help her learn a life lesson, but I was really out of forms, and don't be comin in here in your tank top and tan in January like you all that...

Edited April 1, 2015 by RitaB