Case Study – $12,000 Savings

We recently had a new client come in, his wife has done his books for years and she has found it was at the point where she said,

“I really don’t know what I’m doing and I really don’t want to do this anymore. Go find a bookkeeper.”

He was a very successful individual in construction, he had only 1 employee.

When we looked at this books we knew within about 30 seconds we knew something wasn’t right.

We noticed, for example he had bought a vehicle he didn’t know it was a write off.  He had purchased this vehicle, didn’t get his GST back and was not writing off anything but the fuel. We put his vehicle into his company and maintained that write off for him.  We do see this often, and we are not sure why it happens. Sometimes the accountant will write off all the fuel and maintenance, but they do not actually write off the vehicle.

He also he had not written off any home expenses. He was working out of his home, but he did not give any home expenses to the

Getting-Financing

accountant.

He had bought a trailer, also through his personal bank wasn’t writing off any of the interest on his payments.

Generally speaking, he was missing and standard write offs that we like to see.  There were many things that were disconnected and didn’t make sense.

He was fully entitled to the write offs, but due to lack of knowledge, he wasn’t taking advantage of them.

We straightened out his books, reclaimed expenses that he should have had. We had a conversation with the accountant, and pulled the books into an organized fashion.

By the time we’re done with his books he saved about $12,000 in taxes in comparison to the previous year.

Summary of changes that made the difference:

  • Added vehicle into the books
  • Reclaimed missing GST
  • Added equipment and payments that had been missing
  • Reorganized his chart of accounts for clarity
  • Added missing cell phone bills
  • Found missing insurance payments
  • Educated the client what receipts to save
  • Put client on a monthly bookkeeping plan

So, did you not get back as much as you were expecting this year?

Then it is time to call On-Core Bookkeeping