I started working with a transportation company when they were looking for someone to
train them on QuickBooks (QB). They were looking to replace their bookkeeper and
wanted me to train another employee on how to use QuickBooks, they also wanted this
done discreetly. I inquired if this was why they were not using their CPA for the training,
they gave a noncommittal reply.

At this time, I was introduced to the owner and was able to learn about the company.
They are a specialized ground shipping, with $2,800,000 in revenue and have
been in business for 20 years. I also learned that they did not have a relationship with their
CPA, which is why they hired us to do their training.

Then a few months later we were asked to do the training yet again, but this time in their
offices and to a new person who was to be their bookkeeper.

Since I was now working on their QB file, I was able to address their specific QB
questions and issues. I quickly learned that their file had some challenges. As we worked
on the training, we were reviewing the specifics of the company file. As I researched their
industry, I learned that their receivables were not as tight as they should be. So we
developed some protocols to get the past monies collected and to keep the current
receivables in line.

We cleaned up their Chart of Accounts so the Financial Statements will better reflect the
correct financial position of the company.

As we were working on developing proper Internal Controls, we discovered that an
entire quarter of payroll taxes went unpaid by the ex-bookkeeper. This was troubling to
the owner, when it was reported to him. He believed it to be a malicious action on behalf
of the employee, because he had always inquired about the tax payments being
processed in a timely fashion. He had always been assured that they were paid and

After we processed the payments and filed the missing reports, they received an IRS
letter explaining that the returns had not been filed or paid. I wrote a response explaining
that we had caught the oversight by the ex-employee and have dealt with the issue.
Eventually, the client received a letter from the IRS asking for 45 more days to consider
the response because they were behind. The very next day an IRS agent showed up in
their office.

I received a panicked call from the client and I asked to talk to the IRS representative. I
asked if she could wait for me to get the client’s office, so we could talk in person. I was
there within 15 minutes.

We explained the whole situation to the representative, showed her the forms we filed and
copies of the correspondence that was sent. Due to the fact that there were six instances
(2 payrolls per month for the quarter) of late tax payments and a late filing penalty, we
would not be able to get a complete abatement.

We negotiated a minor penalty with minimal interest for the client and they were able to
settle the issue that day. The client was given two weeks to pay, which they did.
With that chapter finished, we were able to concentrate on further clean-up for ratio
analysis and continue to implement and monitor internal controls to ensure that this never
happens to the company again.

We continue to work with this company and assist them in growing their business. There
have been no additional problems to date and they continue to monitor the internal
controls that have been implemented.

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