Learning Center
We keep you up-to-date on the latest tax changes and news in the industry.
This Is the Best Time to Fix Your QuickBooks File — Here’s Why
Early in the year is when most business owners promise themselves that this will be the year their finances are finally organized. The chaos of last year is behind them, new revenue goals are on the calendar, and there’s a fresh start waiting inside QuickBooks.
But in reality, this is also when many businesses realize something uncomfortable: their books aren’t as clean as they thought.
QuickBooks doesn’t reset itself when the calendar turns. If transactions were miscategorized, bank feeds duplicated, payroll recorded incorrectly, or invoices left unreconciled in December, those problems roll right into the new year, and they only get harder to fix once tax season is underway.
That’s why right now is the best month to clean up QuickBooks. It gives you the cleanest possible starting line for the year ahead.
Your Opening Balances Set the Tone for the Entire Year
When January 1 hits, QuickBooks creates a snapshot of your business: cash balances, credit cards, loans, accounts receivable, inventory, and owner equity all carry forward from December 31.
If anything was wrong last year, those mistakes now become your “opening balances.”
That means:
If income was overstated last year, this year starts with inflated equity
If expenses were miscategorized, your tax return may be wrong
If loans were entered incorrectly, QuickBooks may think you’re richer or poorer than you really are
Fixing these errors in March or April requires going back into a closed tax year, which is messy and often expensive. Fixing them in January is much simpler.
February Is When Bank Feeds Are the Cleanest
Most businesses rely on QuickBooks bank feeds to pull in transactions automatically. By February, all of last year’s activity has undoubtedly cleared the bank, making reconciliation easier.
Waiting too long means:
Bank rules may apply to old transactions incorrectly
Duplicate transactions may sneak in
Unmatched deposits and payments pile up
A late January or early February reconciliation lets you start the year knowing your cash balances are real.
Your Accountant Needs Clean Books — Not a Guessing Game
Every tax season, accountants and tax professionals like this office spend valuable time cleaning up QuickBooks files that should have been ready for review. That cleanup time is billed, and it delays your tax return.
When your books are accurate before you file:
Your tax return is prepared faster
You reduce the risk of amended returns
You avoid IRS notices caused by mismatches
You get better tax planning advice
QuickBooks isn’t just a bookkeeping tool. It’s the foundation of your tax return.
Payroll Errors Don’t Disappear at Year-End
This time of year is when W-2s and 1099s are issued, and that’s when payroll problems finally surface.
Common QuickBooks payroll issues include:
Employees classified incorrectly
Benefits taxed improperly
State withholding errors
Missed payroll tax deposits
If these issues aren’t corrected early, they can trigger penalties and audits later in the year.
A Clean QuickBooks File Helps You Make Better Decisions
When your books are accurate, QuickBooks becomes a powerful business tool.
You can see:
True profitability
Cash flow trends
Whether you can afford new hires
How much you should set aside for taxes
Where money is being wasted
Without clean data, QuickBooks is just a digital shoebox.
What Business Owners Should Do Right Now
Here’s the smartest way to start the year:
Have your QuickBooks file reviewed by our firm – we’re here to help!
Reconcile all bank and credit card accounts
Verify your chart of accounts matches your tax return
Fix misclassified income and expenses
Confirm payroll and tax settings
Lock last year once everything is correct
Doing this now saves time, money, and stress all year long. A clean file means fewer surprises, lower accounting bills, and better financial decisions. It also makes your business more valuable because buyers, lenders, and investors all look at your books.
If QuickBooks has felt confusing, overwhelming, or unreliable, this is your chance to change that.
Want our best tax and accounting tips and insights delivered to your inbox?
Sign up for our newsletter.
Benefits of having a business advisor
Your CFO, Reimagined as a Financial Doctor
Diagnosing root causes, prescribing solutions, and guiding your property business toward long-term wealth.
Our CFO | Advisor
Raquel is a passionate business owner. Now, she is returning to her grassroots with a twist - guiding clients with her expertise as a CPA, she can advise your company as your trusted CFO and Advisor.
-
Raquel Deodanes, MS, CPA
Co-Founder✅ CPA with Real-World Experience – I help property managers stay profitable, tax-efficient, and cash flow positive.
✅ Tax Strategist – Former advisor at California’s revenue agency.
✅ Trusted by 4,000+ Businesses – Experience across CA, FL, TX, NV, and beyond.
✅ Real Estate Investor – I understand the financial realities of property management.
✅ Entrepreneur – I’ve built businesses and know the challenges you face.
Frequently Asked Questions
-
We diagnose financial inefficiencies, treat problems like poor cash flow or rising costs, and guide you to long-term financial health. That includes cleaning up your books, forecasting cash flow, optimizing operations, and helping you grow your portfolio with confidence — just like a doctor builds a custom care plan for a patient.
-
Bookkeepers record transactions. CPAs file your taxes. We connect the dots — helping you understand your numbers, strategically improve them, and make smarter decisions throughout the year. We work alongside your existing team to drive performance, not just compliance.
-
If you're unsure where your cash is going, struggling with rising costs, planning to scale, or just tired of reacting instead of planning — now is the right time. We help you get ahead of problems, not just clean up after them.
-
Clients typically see improved cash flow, cleaner books, higher NOI, better financial reporting, and a lot less stress at tax time. More importantly, you gain clarity, confidence, and control over your business — and a partner who helps you grow it.
Pricing
Painless, transparent pricing.
Let us take away your stress and give you back your time. Choose your perfect package today.
Base
-
Dedicated finance expert
-
Bookkeeping with accrual basis
-
Includes P&L, balance sheet, and cash flow statements
Core
-
Includes everything in Base, PLUS
-
Industry KPIs and financial ratios
-
Monthly virtual 1-hr meetings
-
Monthly rolling budget forecasts
Growth
-
Includes everything in Base, CORE
-
Budget vs. actuals variance analysis and review
-
Payroll and HR Platform