The Panic Phone Call Late Friday Night

I received a phone call late Friday, from a potential client.

His issue: Need 5 years of bookkeeping done, so they can file their taxes and they wanted to be taught on their new QuickBooks system as well.

The kicker: The IRS is scheduled to pay him a visit the next week because he hasn’t filed taxes in 5 years!

The scenario from my end:

• 5 Years of bookkeeping – that’s 60 Months of bookkeeping
• My base rate is $200 per month

That’s $12,000 not to mention the training and rush job on getting 5 years of bookkeeping done in 2 weeks.

He now has a lump sum payment because he neglected to do his bookkeeping and file his taxes on time.

Looking further: not only does he have my fees to pay, but IRS penalties and interest for amounts owned going back 5 years!

Now don’t forget he still want to be trained on his QuickBooks system, which he wanted the training so he could do the 5 years of bookkeeping himself.

Not a smart idea.

I had to tell him that it makes more sense to take care of his urgent need first. I’d service him in this way:

1. I’d do the 5 years of bookkeeping and get his books tax ready first, as that was priority #1.
2. Then train him to do his bookkeeping himself with QuickBooks and his new accounting system.

I’m sharing this story because this is not uncommon unfortunately.Don’t let your bookkeeping get behind. And definitely don’t file your taxes late because interest and penalties can eat up your profits.

The difference between peace of mind and paying monthly for a bookkeeper is a whole lot better than having to pay a huge lump sum for bookkeeping all at once.

What is your current reality?

• Paying a bookkeeper for monthly bookkeeping services
• Doing your bookkeeping yourself, monthly
• Rush order lump sum payment for getting your books caught up at the last minute to file your taxes
• Haven’t done your books in over 90-days

Be proactive not reactive.

If your bookkeeping is not being done on a monthly basis whether you do it or have a bookkeeper do it, it’s time you get a grip. Face reality and get legit with your money management.