Sept 2, 2021 Meeting Notes

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Leveling Up! - 10 things bookkeepers do that CPAs love       (and how to be a CPA’s top referral!)

Speaker:  Nina Martin, CPA, Shareholder, Pittman & Brooks, P.C.    https://pittmanbrooks.com/about/team/nina-martin

Nina’s Bio:

  • Nina joined Pittman & Brooks in 1994. She earned her degree from Western Oregon State University, in Monmouth, Oregon.

  • When not taking care of clients, she stays busy watching, and coaching her three children’s sports teams.

#1 Know Your Audience - The client that wants the best job done or could care less. Request access to CPA, reach out and ask the CPA what they need, develop a standard package that you deliver at year end

#2 Bank Reconciliations - Fun to balance, but there is more. Actually tie the balance to the Trial Balance. Take the check register approach, not the bank statement approach (may miss checks that were written but not yet cleared). Review uncategorized transactions & journal entries that need to be cleared out. Provide the final bank reconciliations as well as a copy of the bank statements.

#3 Inventory - Provide support for the YE Balance. Know the expected gross profit margin. Adjust inventory a minimum of each quarter

#4 Fixed Assets - Have categories that match the depreciation schedule ie (furniture & fixtures, leasehold improvements, building, land). Ask for the threshold to capitalize an asset (Review Repairs & Maintenance & Small Tools). Provide purchase/lease agreements

#5 Other Assets - Lease deposits (add details to the memo) Get a copy of the lease. Notes Receivable - request copy of the note if it exists & provide the support for the balance. Know the plan for how the CPAs will equalize the distributions

#6 Credit Cards - Enter each charge based on the date of the charge not the date of the statement. Provide the reconciliation & statement, review uncategorized transactions. If the client commingles, strongly suggest they STOP & let the CPA know

#7 Current Liabilities - Due within one year - provide support. Payroll taxes & retirement plan payables. If there is a related entity - ensure the balance between the 2 sets of books match. Check on the current position of Long Term Debt

#8 Long Term Debt - Record monthly Principal & Interest, provide new purchase/lease agreement, review expense accounts for new charges, leave the less current portion of LT Debt a LT Debt unless you have all the information

#9 Equity - YE Journal Entries Posted and check for Retained Earnings. Understand Retained Earnings vs Capital Accounts. Carefully code distributions & draws. Check again on the comingling . . .

#10 Review Your Work - Every quarter run reports for overall review. P&L by month and look for consistency. Comparative YTD P&L & BS - review and either correct or provide explanation . Have you provided support for each balance sheet account, W-3 for payroll, and retirement expense support. Review JEs received from CPA & learn from them. If now JEs are provided, quickly find a new CPA