Building a Tax-Ready Bookkeeping Function for a U.S. Tax and Advisory Firm
A U.S.-based tax and advisory firm experienced a surge in new clients during the busy tax season. To manage the growing workload, the firm needed additional bookkeeping and tax preparation support. Incomplete records, unreconciled accounts, and missing supporting documents were also slowing down the tax preparation process.
The firm partnered with KnowVisory Global to strengthen its bookkeeping and tax preparation operations. Our team supported the firm’s client accounts through its existing TaxDome workflow, ensuring tax preparers received complete, reconciled books and the necessary supporting documents to keep tax returns moving on time.
Introduction
The firm is a U.S.-based accounting and business advisory practice offering tax preparation, bookkeeping, and CFO services to small and medium-sized businesses. Its clients operate across different industries, including real estate and retail, with accounting needs involving POS transactions, payroll, loans, equipment purchases, and other business activities.
While the firm manages bookkeeping for some clients, others maintain their books independently and approach the firm for tax preparation and CFO services.
During tax season, a growing number of new clients increased the workload on its internal team. The firm needed additional support to manage bookkeeping, keep financial records tax-ready, and ensure tax preparers had accurate books and supporting documents when it was time to file.
To meet this need, the firm partnered with KnowVisory Global for ongoing bookkeeping and tax preparation support.
The Problem
The increase in new clients during tax season put additional pressure on the firm’s internal team. Several bookkeeping issues also made tax preparation more time-consuming.
The key issues included:
- Incomplete transaction records: Transactions were often missing explanations or supporting documents, requiring repeated follow-ups with clients.
- Unreconciled accounts: Bank accounts, loans, notes receivable, and prepaid expenses were not always reconciled before tax preparation began.
- Incorrect transaction recording: Asset purchases and sales, loan refinances, and other one-time transactions were not always recorded correctly or supported by the necessary documents.
- Payroll discrepancies: Payroll totals needed regular reconciliation with payroll records to ensure accurate year-end reporting.
- Unreviewed external books: Some clients maintained their books independently, and errors were often discovered only after the tax preparer started reviewing them.
- Cleanup of inherited books: New clients moving from other bookkeeping providers often had uncategorized transactions and unreconciled accounts.
- Scattered documentation: Supporting records were spread across emails and folders, making it difficult to trace transactions and verify balances.
These issues delayed tax preparation and increased the workload for the firm’s internal team.
The Decision to Transition
The firm needed more than basic bookkeeping assistance. It wanted an experienced team that understood tax preparation requirements and could manage bookkeeping, reconciliations, document collection, and review.
KnowVisory Global was selected to provide ongoing bookkeeping and tax preparation support. Our experience with QuickBooks Online and ability to work within the firm’s existing TaxDome workflow made the transition easier.
The goal was to bring clients’ books back to order and provide tax preparers with complete, well-organized records as needed.
The Challenges
The engagement involved different client requirements and accounting workflows.
- Two types of clients: Some clients had their books managed by the tax firm, while others maintained their own books and needed an accounting review before tax preparation.
- Different accounting requirements: Rental income, POS transactions, payroll, loans, notes receivable, and project expenses required specific attention.
- New client onboarding: Inherited books needed to be cleaned up, reconciled, and brought up to date while ongoing monthly work continued.
- Document collection: Bank statements, loan documents, invoices, payroll records, and property management statements arrived at different times and needed consistent follow-ups.
- Existing workflow: All regular work had to be managed through TaxDome, with email and Microsoft Teams reserved for urgent communication.
The Solution
KnowVisory Global established a regular bookkeeping and review process to keep client accounts tax-ready throughout the year.
Our team:
- Reconciled bank and credit card accounts to keep financial records accurate and up to date.
- Recorded asset purchases and sales, loan refinances, prepayments, and payroll adjustments with the necessary supporting documents.
- Collected bank statements, loan papers, invoices, bills, and property management statements. Organized them in client SharePoint folders and attached relevant documents to QuickBooks Online transactions.
- Recorded rental income using property management statements and tracked loan repayments against lender statements.
- Reconciled balance sheet accounts at quarter-end and year-end and prepared closing drafts with supporting details.
- Reconciled payroll records quarterly and annually, maintained supporting documents, and processed payroll for selected clients.
- Prepared organized tax packages for both internally managed and externally maintained client accounts, including supporting documents and answers to bookkeeping queries.
- Reviewed balance sheets and profit and loss statements for clients whose books were maintained by other providers.
- Corrected uncategorized transactions, completed pending reconciliations, and brought inherited books up to date.
Our team also handled urgent and ad-hoc requests based on deadlines. Daily calls with the firm’s team helped resolve questions and keep work moving.
Results
Conclusion
- The engagement helped the firm establish a more organized and consistent process for managing bookkeeping and tax preparation support. Key outcomes included:
- 100+ tax returns submitted on time, supported by organized bookkeeping records and timely tax preparation assistance
- 5+ months of continuous support during peak tax season, with KnowVisory working as an extension of the firm's accounting team
- Reconciled balance sheets and supporting documents provided to tax preparers before filing
- Better documentation, with source records attached to relevant QuickBooks Online transactions
- External client books reviewed before being passed to tax preparers
- Inherited books cleaned up and brought up to date for new clients
- Regular monthly and quarterly accounting activities maintained throughout the year
- Accurate bookkeeping makes tax preparation easier and helps accounting firms manage busy seasons more effectively.
- Through this engagement, KnowVisory Global helped the firm manage its growing client workload with regular bookkeeping, reconciliations, document management, and tax preparation support.
- With an experienced team handling these activities, the firm's internal professionals could spend more time on tax planning, client advisory, and other core services.
- Need additional bookkeeping and tax preparation support for your CPA or accounting firm?
- Partner with KnowVisory Global for reliable accounting support that works with your existing team and processes.
