Resources · Lesson
What clean books means before a lender or buyer
When someone outside the business reviews your books, they look for a few signs that the numbers can be trusted. JRK Financial does not make or arrange loans; we help get the books ready for the conversation.
For educational purposes only. This lesson describes general bookkeeping practices and is not tax, legal, or lending advice for your situation. Talk with us or your tax professional before acting on it.
Chapter 1
Reconciled through a recent date
Every bank, card, and loan account matches its statement through a recent month-end. Books reconciled through last spring raise questions about everything since.
Chapter 2
No mystery balances
Uncategorized amounts, "suspense" accounts, and old balances nobody can explain are the first things a reviewer circles. Each one should have a short, clear answer — or be cleaned up.
Chapter 3
Paperwork matches the file
The statements, invoices, and tax returns you hand over should agree with the books. When they don't, a reviewer has to decide which one to believe.
Chapter 4
Payroll is broken out
Wages, taxes withheld, and employer costs each show on their own lines instead of one lump "payroll" amount. That's how a reviewer sees what the business really costs to run.
Want a person to look at your numbers?
We work with small businesses from Kalamazoo, Michigan, and remotely across the country. Tell us what's going on and we'll tell you plainly what would help.
Kalamazoo, Michigan · Call 269-200-2910