Client Background
An auto repair and body shop specializing in collision repair, routine maintenance, and insurance claims needed a QuickBooks Clean-Up after years of disorganized bookkeeping led to unclear revenue tracking and overpaid taxes. The client hired Development Theory to do a QuickBooks clean-up for an auto repair shop.
The Challenge
Bank Accounts Not Reconciled for 18 Months: Transactions weren’t matched, making financial reports inaccurate.
Sales Tax Errors on Parts & Labor: The owner overpaid sales tax on some items and underpaid on others, creating an audit risk.
Untracked Customer Deposits & Prepayments: Many customers had paid deposits for repairs, but payments were not applied correctly, making cash flow management difficult.
Expense & Inventory Misclassification: Automotive parts, tools, and subcontractor fees were all categorized incorrectly, impacting tax filings.
Our Approach
Bank & Credit Card Reconciliation: Balanced 18 months of bank and credit card transactions, ensuring accurate records.
Sales Tax Correction & Compliance Fix: Adjusted QuickBooks settings for correct sales tax tracking, preventing audit risk.
Customer Deposit & Prepayment Tracking Fix: Ensured customer payments were properly recorded and applied to jobs.
Expense & Inventory Reclassification: Organized auto parts, tools, and subcontractor payments into the correct expense categories.
Cash Flow Forecasting & Financial Reporting Cleanup: Generated accurate profit & loss and cash flow reports for better decision-making.
The Solution
Recovered over $18,000 in sales tax overpayments, reducing tax burden.
Ensured customer deposits were tracked properly, preventing revenue loss.
Improved expense classification, maximizing tax deductions.
Created a cash flow management system, ensuring financial stability.
Results & Impact
Revenue accuracy improved by 98%, preventing invoice errors.
Sales tax compliance achieved, avoiding audit risks.
Over $12,000 in missed deductions claimed, increasing profitability.
Owner now has full financial visibility, making smarter business decisions.
Client Feedback
"I was paying way too much in sales tax and had no idea! Now, my books are accurate, and I actually know how much I’m making."
Development Theory Can Help Business Owners Like You
Are your accounting records a mess? Would you like help getting them straightened out? Our QuickBooks Clean-Up service gets one year of your historic accounting data balancing again. Don't wait until tax season to deal with your books!
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