Client Overview:
Client: Erin Real Estate A dynamic real estate investor with a growing portfolio of rental properties.
Industry: Real Estate Investment
Situation: Erin was passionately growing her real estate portfolio, but her QuickBooks Online account had become neglected and was significantly disorganized. With the tax deadline looming, she urgently needed expert help to get her books in order.
The Challenge:
When Erin Real Estate approached Sajal QBO Star, their QuickBooks Online account was, in Erin’s words, “totally messed up.” The key challenges included:
1. Urgent Tax Deadline: An immediate need to clean up and organize multiple years of bookkeeping records for accurate tax submission, with her CPA unable to proceed with the current state of the books.
2. Commingled Expenses: Significant intermingling of personal and business finances across various bank and credit card accounts, making it difficult to ascertain true business performance.
3. Unreconciled Accounts: Months, and in some cases years, of bank and credit card accounts were unreconciled, leading to a high risk of errors and omissions.
4. Lack of Property-Specific Tracking: Income and expenses were not being properly allocated to individual properties, preventing any clear analysis of profit and loss per unit.
5. Inconsistent Categorization: Expenses and income were often miscategorized or inconsistently recorded, distorting financial reports.
6. Overall Financial Obscurity: Erin lacked a clear, reliable picture of her overall financial health and the performance of her real estate investments, causing considerable stress.
The Solution by Sajal QBO Star: Sajal QBO Star undertook a comprehensive approach to rescue and restructure Erin Real Estate’s QuickBooks Online:
1. Initial Deep-Dive Diagnostic & Consultation: Conducted a thorough review of the existing QBO setup to understand the full scope of the disarray and Erin’s specific reporting needs for her real estate investments.
2. Strategic Chart of Accounts Redesign: Restructured the Chart of Accounts to properly accommodate real estate bookkeeping best practices, enabling clear tracking of income, expenses, assets, and liabilities on a per-property basis.
3. Meticulous Bank & Credit Card Reconciliation: Painstakingly reconciled all business bank accounts, credit cards, and loan accounts, identifying and correcting discrepancies for all outstanding periods.
4. Transaction Categorization & Cleanup: Systematically reviewed, categorized, and corrected historical transactions, meticulously separating business from personal expenses and ensuring accurate allocation to respective properties.
5. Data Integrity Restoration: Addressed missing information and inconsistencies to ensure the overall integrity and accuracy of the financial data.
6. Customized Reporting Setup: Developed and generated accurate financial statements, including Profit & Loss, Balance Sheet, and crucial Profit & Loss by Property reports.
7. CPA Collaboration: Liaised directly with Erin’s CPA, providing them with accurate, well-organized financial reports and supporting documentation required for a smooth and timely tax submission.
8. Ongoing Monthly Bookkeeping Setup: Following the cleanup, transitioned Erin Real Estate to a streamlined monthly bookkeeping plan to maintain accuracy and provide ongoing financial clarity.
The Results & Benefits:
The engagement with Sajal QBO Star brought about a dramatic transformation for Erin Real Estate:
1. Successful & Timely Tax Filing: The urgent cleanup was completed efficiently, allowing Erin to meet her tax submission deadline and avoid potential penalties.
2. Achieved Financial Clarity: Erin now has clear, accurate, and reliable financial records in QuickBooks Online.
3. Property Performance Insights: With proper tracking and P&L by Property reports, Erin can now accurately assess the profitability of each investment in her portfolio.
4. Significant Stress Reduction: The burden of disorganized books and tax worries was lifted, allowing Erin to focus on managing and growing her real estate investments.
5. Empowered Decision-Making: Access to accurate financial data has empowered Erin to make more informed business and investment decisions.
6. Time Savings: Ongoing monthly bookkeeping by Sajal QBO Star saves Erin countless hours previously lost to attempting to manage chaotic books.
7. Solid Foundation for Growth: With clean books and efficient systems, Erin Real Estate is now better positioned for sustainable growth and future financial management.
Client Testimonial:
“Before working with Sajal, our QuickBooks was completely overwhelming. After the detailed QBO cleanup and with her ongoing monthly bookkeeping, our financials are finally accurate and easy to understand. It’s saved us so much time and stress, especially during tax season. Sajal is incredibly knowledgeable and responsive!” — Erin, Owner, Erin Real Estate
Key Services Provided:
1. QuickBooks Online Cleanup & Rescue
2. Bank & Credit Card Reconciliation
3. Chart of Accounts Customization for Real Estate
4. Ongoing Monthly Bookkeeping Services
5. Financial Reporting
6. CPA Collaboration Support