INTRODUCTION
A growing business managing vehicle rentals and a Shopify-based equipment store approached us for support with their financial operations in QuickBooks Online (QBO). Their deposit-first transaction cycle was not reflected accurately in the books due to inconsistent handling by the previous bookkeeper.
The client required a cleanup of historical data, accurate categorization of income and deposits, and a structured monthly process. To address this, we reviewed their workflow, payment cycle, and system setup to identify the root causes of financial inaccuracies.
DISCUSSIONS
Our review found that deposits, revenue, and Shopify/Stripe transactions were not recorded consistently. Customer deposits were misclassified, deferred revenue balances were inaccurate, and several periods included unreconciled activity that created confusion in the financial statements.
The existing bookkeeping setup also lacked clarity around income recognition, GST/PST compliance, and month-end reporting, limiting financial visibility. These issues contributed to the client’s earlier dissatisfaction with their previous provider and highlighted the need for a complete cleanup and a more structured accounting workflow.
REQUIREMENTS
To stabilize the accounting function and restore accuracy, the key requirements were:
• Cleanup and correction of historical transactions across all accounts.
• Proper categorization of deposits, revenue, and operational expenses.
• Accurate matching between Shopify, Stripe, and QBO activity.
• Reconciliation of GST/PST filings and tax-related entries.
• Correction of deferred revenue and security deposit balances.
• Streamlined monthly workflows for AP, AR, invoicing, and reconciliations.
• Clear, timely month-end reporting to support operational planning.
SOLUTION
1. Backlog Cleanup and Data Correction
We created a separate cleanup scope to fix historical inaccuracies, including deferred revenue balances, inventory adjustments, security deposit corrections, and outstanding tax filings. Opening balance discrepancies were also resolved to ensure the books reflected an accurate financial position.
2. Structure for Monthly Bookkeeping Activities
A second scope was created for recurring monthly tasks, including Dext inbox management, Shopify and Stripe invoice creation, bank feed categorization, and account reconciliations. All processes were documented to maintain consistency and reduce future errors.
3. Accurate Revenue and Deposit Handling
The client’s deposit-first model required a customized structure, so the workflow for deposit tracking, invoice generation, and revenue recognition was redesigned. This improved traceability and clarified the flow of funds from initial payment to service completion.
4. Communication and Operational Alignment
We resolved multiple queries through structured clarification emails, ensuring transparency and consistency in handling transactions. This helped build confidence and ensured the revised workflow aligned with the client’s business model.
5. Integration into Reporting and Closing Cycles
All improvements were integrated into a standardized month-end closing process. Each month now concludes with reconciliations, review of receivables and payables, GST/PST checks, and clear financial reporting.
CONCLUSION
By restructuring the accounting system, correcting the backlog, and establishing a clean monthly workflow, we restored accuracy and visibility across all financial operations. The client now receives reliable, timely reports that support real-time business decisions.
The improved structure, consistent communication, and transparency rebuilt trust and led the client to expand the monthly scope from 16 to 30 hours. With clean books and an organized workflow, the business now operates with clarity, confidence, and a financial system ready to support future growth.
