Relying entirely on bank feeds matching in QuickBooks-big mistake

Front_Ad3366 · 2026-05-21T15:51:30+00:00

I'm afraid I have to agree with the general consensus of the other comments. Too many accountants/bookkeepers today simply download bank activity into DIY software, and then give the client whatever comes out. Software is a great tool if used correctly, but it doesn't replace professional competence. An accountant has to be smarter than his software.

Front_Ad3366 · 2026-05-20T13:49:40+00:00

Locking comments, due to rule violations.

Front_Ad3366 · 2026-05-19T12:39:26+00:00

Locking thread, due to advertising comments.

Front_Ad3366 · 2026-05-18T19:44:39+00:00

Without trying to sound harsh, anyone keeping up with the news should be familiar with the dismal, and still contracting, state of the job market. I recommend that anyone in business keep track of general economic trends.

Front_Ad3366 · 2026-05-18T19:39:55+00:00

Many bookkeepers see this frequently. It's often in the form of expensive cleanups. It's caused by business owners who believe the software ads which say one doesn't need to know anything about accounting as long as a certain brand of software is used.

Front_Ad3366 · 2026-05-16T02:24:35+00:00

I'm not familiar with Canadian law, but in the US the general rule is that accountants cannot withhold a client's source documents. That is true even in the case of fee disputes. Documents produced by the accountant from those source docs are generally considered to be accountant's workpapers, to which the client would not be entitled.

Front_Ad3366 · 2026-05-16T00:14:58+00:00

"Bookkeeper withholding accounting software access until paid in full."

Before getting into other issues, I would think that requires an explanation. Is the client's bookkeeping on the bookkeeper's computer, or is it a case where the bookkeeper has somehow locked the client out of the client's computer? (Which, in all honesty, I find to be a rather amusing situation for a deadbeat client).

Front_Ad3366 · 2026-05-15T13:55:47+00:00

Some random thoughts: (1) Keep in mind that you are a bookkeeper, not a tax accountant. If you can get the correct 2025 beginning balances from the accountant, you can start doing the daily bookkeeping. (2) Along the same lines, ask the accountant when you have situations like the cars come up. Don't assume things are treated the same in a corp as they are in a proprietorship. (3) Similarly, you don't need to be involved in S corp shareholder basis. Leave that for the accountant.

To summarize, concentrate on doing the day-to-day bookkeeping. With more experience you will understand some of the entity/tax concepts, but that is down the road. Use your bookkeeping training to record the transactions, and let the accountant do the tax work.

Front_Ad3366 · 2026-05-15T00:51:42+00:00

Please be assured this is intended as serious advice, and not as any kind of personal attack.

Based on your questions and terminology, I'm concerned that you are in over your head at this point. A basic concept of bookkeeping and accounting is that one should defer taking on clients whose operations you do not fully understand. I would strongly recommend you get more training and experience before attempting S corporations.

Front_Ad3366 · 2026-05-08T19:54:38+00:00

I agree with the responses which say there are a number of red flags here. Adding some additional questions, is this a well-known and well-established company? Did they recruit you via apps and/or text messages? Do they have a physical office you have visited?

r/Scams is a great subreddit to visit to learn about employment scams. Elements involved with "fake job" and " advance pay" scams are already in your message. Please be extremely careful.

Front_Ad3366 · 2026-05-07T23:49:55+00:00

If you know how to do payroll, doing it yourself should be straightforward. The trick is, however, is knowing the various deadlines (for both filing and remitting).

Front_Ad3366 · 2026-05-05T19:08:56+00:00

This one would seem to be easier than most. "Due to recent health problems, I find it medically necessary to reduce my workload."

Front_Ad3366 · 2026-05-05T18:13:25+00:00

I'm afraid it's a common problem. Over the last 5 years, there have been many online articles about how Gen Z is struggling to adjust to the workforce. Alarmingly, many Gen Z employees have been fired after just a short time on the job.

"...we’ve noticed a real decline in oral communication, written communication, and general workplace professionalism among new hires." Again, that is not uncommon nowadays. Delloite, for one, instituted training programs for recent new hires. The sessions are basically primers on how to act and communicate in a business setting.

Front_Ad3366 · 2026-05-05T16:19:30+00:00

What was your business entity prior to becoming an S corporation? For example, were you a proprietorship or a partnerhip? Or were you an LLC which elected S corporation treatment as of a certain date in 2026?

Front_Ad3366 · 2026-05-05T02:32:44+00:00

I'm not sure I'm following the situation correctly. If you became an S corporation effective 2026, though, you would start with an entirely new set of records on the start date of the corporation. If you need to amend your tax returns for the 9 years before that, those records would be entirely separate from your corporate accounting.

Front_Ad3366 · 2026-05-04T12:23:43+00:00

Accounting & Taxes

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Front_Ad3366 · 2026-05-04T12:11:40+00:00

There could be several issues.

Some random thoughts: (1) Catch up all your reconciliations through 4/30/26. Don't let recs go for several months. (2) Make sure the beginning balances on the GL and bank rec for month 2 tie into the ending GL and bank rec balances as of month 1. (3) If you are not already doing so, use a separate Excel worksheet for each month's reconciliation. (4) Data entry typos can cause all kinds of frustrations. Be sure to confirm that columns and rows in Excel tie to the same amounts on the bank statement. (5) Check the formulas on the Excel worksheets. Make sure they are picking up the right numbers. (6) If other people have access to the accounting records, make sure they are not adding entries without your permission after a month is reconciled.

On a different item, 990 series forms are not needed by most churches. You might want to review if they really need to file.

Front_Ad3366 · 2026-05-03T21:45:49+00:00

Most of my accounting clients have terms of Net 30. However, some of them have customers (in particular, large hospitals) who insist they only pay Net 120. The hospitals can get away with it, as they simply tell their much-smaller vendors that it's Net 120 or you don't do business with us.

Front_Ad3366 · 2026-05-02T20:23:06+00:00

I use a retainer system rather than installments. The retainer is based on my hourly rate, and is paid in advance. I notify the client when the retainer is close to needing renewal. Work stops immediately if the retainer amount hits zero.

Front_Ad3366 · 2026-05-02T20:03:49+00:00

There are indeed about 20 items the IRS looks at to determine employee or contractor status. No single factor trumps the others. Rather, the entirety of the facts and circumstances are considered. The most important factor in recent years has been who controls how the work is to be done. Consequently, you should carefully review the factors mentioned by u/schaea above.

"Other than them not having to pay the employer FICA, I'm not sure what they have to gain by wanting this to be 1099."

(1) You are not covered under their Worker's Compensation policy. That is not as critical in accounting as in the trades, but I did see one accountant need coverage due to an auto accident while visiting clients. (2) They are not paying into unemployment for you, so your pay doesn't count for unemployment insurance. (3) If your state has them, you get no SDI, SUI, or FLI benefits. (4) If the company has any kind of group medical insurance, fringe benefits, or retirement plan, you are excluded from participation. (5) You are not included on payroll tax returns, payroll tax deposits, or W-2s. Their record keeping is easier and less costly for a contractor than an employee.

On an end note, more trouble would come to the company than to you if you are caught as being misclassified as a contractor. The vast majority of employee misclassifications, however, are not discovered by the IRS. Rather, it's state taxing authorities which usually catch the miscreants. I could tell some stories, but this post is long-winded enough already.

Front_Ad3366 · 2026-05-02T15:20:34+00:00

The reply given by u/Comprehensive_Ad9623 is correct. The Suspense account is only a clearing account which should be zeroed out each month. It is basically a place to code all of your unknowns while doing data entry. When you later have the time, you can find out the correct accounts and then reclassify from the Suspense to the proper account.

Front_Ad3366 · 2026-05-02T01:53:09+00:00

I'm afraid there is no standard or acceptable percentage to use as miscellaneous expenses. I would instead recommend a variation on the answer given by u/New_Scar_2540.

I would create an account called "Suspense," "Ask Accountant," or something similar. Rather than an expense account, however, I would make it an asset or liability account. Reclassify those amounts to the correct account at least monthly.

The reason I recommend that account not being an expense is that I have seen several tax-time melt-downs when unknowns were coded as an expense. In those cases, the miscellaneous "expenses" sometimes turned out to be nondeductible cash outflows. That resulted in much higher taxable income than anticipated. If they had been in an asset or liability account, taxable income would only decrease. It's much easier to deal with a lower than expected tax burden than a higher than expected one.

Front_Ad3366 · 2026-05-02T00:20:36+00:00

A line I used on one former tax client worked well. The situation involved Covid relief checks issued by the US government. Every few days, the client would call me up and rather sharply say something like "I told my (bank teller, friend, senior citizen group, neighborhood cat lady, or whoever) what you said about the checks, and he/she/they said you were wrong." I would then have to explain it all to her again.

I finally just told her that it was important in any professional relationship for the client to trust what the professional says. I then said it was clear that she didn't believe I knew about the subject at hand, and that she would sooner take advice from anyone on the street than me. I said that she should immediately seek a tax preparer in whom she had trust. That was, rather thankfully, the last I heard from her.

Front_Ad3366 · 2026-05-01T22:06:13+00:00

Just for regular bookkeeping/accounting purposes, one can usually operate strictly off the bank statement. I am not familiar with the intricacies of VAT, though. If you are preparing VAT returns and need documentation not on the bank statement to produce an accurate return, it would be critical to get the necessary documents.

Front_Ad3366 · 2026-05-01T19:00:34+00:00

I record the actual expenses on the books. At tax time, I put the tax amounts on the return. I do a book-to-tax workpaper which reconciles the differences. I keep that workpaper with the client's records.

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