How a North Hollywood Restaurant Fixed 14 Months of QuickBooks Chaos in 3 Weeks

Client Profile

Business: Family-owned Mediterranean Restaurant
Location: North Hollywood Arts District
Type: 25 seats, take-out heavy
Revenue: ~$45K/month

The Problem

The new owner had inherited a messy QuickBooks file from the previous bookkeeper. The situation:

• 14 months of transactions unreconciled
• Square POS not properly integrated with QuickBooks
• Missing expense receipts and documentation
• Negative equity on the balance sheet (major red flag)
• Tax deadline approaching with no clean records
• Bank considering a $75K equipment loan but needed clean financials

The owner tried to clean it up himself but quickly realized it was beyond his accounting knowledge. He needed professional help fast.

The Discovery

Our initial assessment revealed:

• 3 bank accounts not reconciled
• Duplicate transaction entries (Square transactions entered manually AND auto-imported)
• Personal expenses mixed with business expenses
• Sales tax liability unclear
• Missing approximately $18,000 in expenses
• Over 2,100 transactions to categorize and reconcile

The Cleanup Process (3 Weeks)

Week 1: Assessment and Data Gathering

• Exported all bank statements for 14 months
• Collected Square POS reports for the entire period
• Gathered vendor invoices, payroll records, and receipts
• Categorized 2,100+ transactions
• Identified missing documents

Week 2: Reconciliation and Corrections

• Reconciled all 3 bank accounts month-by-month
• Removed duplicate entries from Square auto-import
• Properly categorized all transactions
• Separated personal expenses from business expenses
• Updated sales tax liability tracking
• Fixed negative equity issues

Week 3: Financial Statements and Review

• Generated clean profit & loss statement for all 14 months
• Created accurate balance sheet
• Calculated quarterly tax estimates
• Delivered lender-ready financial statements
• Trained owner on proper ongoing tracking

The Results

Clean Books

All 14 months reconciled and accurate. Owner could now see true profitability by month and make informed decisions.

Loan Approved

Bank approved the $75K equipment loan based on clean financial statements. Owner purchased new kitchen equipment and expanded capacity.

$18K in Missed Deductions

Identified $18,000 in missed business expenses that were paid but never recorded. This reduced taxable income significantly.

Ongoing Monthly Bookkeeping

Set up monthly bookkeeping service ($850/mo Core tier) to prevent the problem from happening again. Includes monthly close, payroll for 4 employees, and sales tax filing.

Investment

Cleanup (one-time): $3,200
Ongoing bookkeeping: $850/month

Client Testimonial

"I was overwhelmed and about to lose a loan opportunity because my books were a disaster. Everline cleaned up 14 months of mess in 3 weeks, found thousands in missed deductions, and the bank approved my loan. Now I get clean financials every month and actually understand my numbers. Best business decision I made."

Lessons Learned

• Do not let books go unreconciled for more than 2 months
• POS integration must be set up correctly from day one
• Monthly bookkeeping prevents this mess and saves money long-term
• Clean books mean better lending terms and lower interest rates

Books a mess? Schedule a free bookkeeping assessment and we will tell you exactly what needs to be fixed and how much it will cost.