Client Results
Real outcomes from businesses we work with. These case studies show what happens when the books are finally done right.
Immigration Attorney Facing a State Bar Audit
The Problem
A solo immigration attorney had been using Clio for case management but had never connected it to his accounting. His IOLTA trust account had not been reconciled in eight months. Client funds were deposited and disbursed, but there was no system to track what belonged to whom.
Then a State Bar audit notice arrived. He had six weeks to produce complete trust account records or face potential disciplinary action.
What We Did
We reconciled eight months of trust transactions, matching every deposit and disbursement to specific client matters. We integrated Clio with QuickBooks so that trust activity would sync automatically going forward.
We created a monthly trust reconciliation process and prepared the documentation package the State Bar required for the audit.
The Result
He passed the audit without any findings. The auditor noted that his records were thorough and well-organized. The attorney told us it was the first time he felt genuinely prepared for compliance review rather than dreading it.
While cleaning up the books, we also found unbilled time entries in Clio that had been overlooked. He recovered over $12,000 in fees he had forgotten to invoice. That alone covered our work for the year.
He has since referred three other attorneys to us. We now handle trust accounting and monthly books for all of them.
Property Manager Who Could Not Tell Which Units Made Money
The Problem
A property manager handling 38 rental units across six different owners was running everything through a single bank account. Income and expenses were lumped together with no way to track profitability by property or produce accurate owner statements.
One of his largest owners had threatened to leave because he could never get clear reporting on his properties. The manager knew he was losing clients over this but did not know how to fix it.
What We Did
We set up class tracking in QuickBooks so every rent payment, repair invoice, and management fee was assigned to a specific property and owner. We rebuilt the prior year of transactions to establish a clean baseline.
We created automated monthly owner statements that broke down income, expenses, and net distributions. We also helped him open a separate trust account for owner funds so he was no longer mixing operating money with money that belonged to his clients.
The Result
The frustrated owner stayed once he started receiving clear monthly statements. He could finally see exactly what each property earned and what was spent on maintenance.
The reporting also revealed one property where repair costs had exceeded rent collection by 22% over the prior year. The owner had no idea the unit was bleeding money. He raised the rent and addressed deferred maintenance that had been driving the costs.
Word got around that the manager now provided professional-grade reporting. He picked up two new owner clients within three months, adding 14 units to his portfolio. The reporting that almost cost him a client became a selling point for new business.
Dental Practice Buried in EDD Notices
The Problem
A dental practice with nine employees had been handling payroll through spreadsheets and manual calculations. The office manager spent hours every pay period figuring out hours, overtime, and withholdings. Mistakes were common.
Then the EDD notices started arriving. Missed deposits, late filings, and incorrect payments had triggered penalties that were now approaching $8,000. The dentist was overwhelmed and had no idea where to even begin.
What We Did
We moved them to a proper payroll system with automatic tax calculations and filings. We set up direct deposit, configured California sick leave accruals, and built in the overtime rules correctly.
We worked directly with the EDD to resolve the outstanding notices. We provided documentation showing the errors were caused by the manual system and demonstrated that proper controls were now in place.
The Result
The EDD reduced the penalties by over 60% based on our voluntary disclosure and the proof that a compliant system was now running. The practice paid about $3,000 instead of $8,000.
The office manager got back roughly 12 hours per month that had been spent on payroll calculations. Employees stopped questioning their paychecks because the numbers were finally consistent and correct.
The dentist told us she used to dread the 15th and 30th of every month. Now payroll runs automatically and she reviews a simple report. She has since referred two other practice owners who were in similar situations.
Test Prep Center Ready to Open a Second Location
The Problem
An SAT and ACT prep center in the San Gabriel Valley had grown steadily for five years. The owner wanted to open a second location but had no real financials to show a lender. He ran the business from his bank balance and filed taxes based on whatever his CPA could piece together.
Two banks had already turned him down for an SBA loan because he could not provide clean profit and loss statements or a balance sheet.
What We Did
We went back two years and cleaned up the books completely. We separated revenue by program type, allocated expenses properly, and produced accurate monthly financial statements.
We built a cash flow projection for the second location and helped him put together a complete loan package with all the documentation the bank would need.
The Result
The third bank approved his SBA loan within five weeks. The loan officer told him it was one of the more organized applications he had seen from a small business owner.
The second location opened six months later. We set up the books from day one with proper tracking so he could compare performance between locations side by side.
He now reviews a monthly P&L for each location and actually understands which programs drive the most profit. He is already talking about a third location, and this time the financials will be ready before he even walks into the bank.
Family Restaurant Preparing for Sale
The Problem
A family restaurant had been running for over 25 years. The owners were in their late sixties and ready to retire. The problem was their books were 18 months behind and the records they did have were incomplete.
Two potential buyers had already walked away after their accountants reviewed the financials. The owners were starting to worry they would never find a buyer and would have to close the doors instead of selling.
What We Did
We caught up the 18 months of backlog and then went back three full years to create clean historical financials. We separated food costs, labor, and overhead so a buyer could see exactly where the money went.
We organized the supporting documents and built a financial package designed to answer the questions any serious buyer would ask during due diligence.
The Result
The next buyer made it through due diligence without issues. Their accountant later told us the financial package was unusually complete for a restaurant sale and made their job straightforward.
The business sold at the asking price. The owners retired and the restaurant stayed open under new ownership, which is exactly what they had hoped for.
The buying process that had stalled twice before now moved quickly. Having clean books removed the uncertainty that had scared off previous buyers. The sale closed within 90 days of the offer.
Electrician Evaluating a Business Purchase
The Problem
A licensed electrician wanted to buy a competing electrical contractor. The seller claimed around $600,000 in annual revenue and healthy profits. The asking price was based on those numbers.
Something felt off to the buyer. The profits seemed too high for the size of the operation. He did not want to walk away from a good opportunity, but he also did not want to overpay for a business that was not as profitable as it appeared.
What We Did
We requested the seller's bank statements, tax returns, and QuickBooks file. We compared them against each other and looked for discrepancies between what the books showed and what the bank actually recorded.
We found that the owner had been running significant personal expenses through the business, including car payments, insurance, and family cell phone plans. We recalculated the true adjusted profit after removing those items.
The Result
The real profit was about 35% lower than what the seller had represented. The business was still viable, but not at the original asking price.
Armed with the actual numbers, our client renegotiated the purchase price down by $70,000. The seller agreed because he knew the analysis was accurate and could not dispute it.
The deal closed with our client fully aware of what he was buying. There were no surprises after the sale. We now handle the monthly books for the combined company, and he has grown revenue by 40% in the two years since the acquisition.
LA's Small Business Bookkeeper
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