After-the-fact bookkeeping
What exactly does an after-the-fact bookkeeper do?
Also known as “catch-up bookkeeping,” after-the-fact bookkeeping is exactly what it sounds like. When financial statements arrive at the end of each accounting period, the bookkeeper uses them to verify and reconcile the income and expense details in a business’s books. Checks written, withdrawals made, credit cards charged, deposits deposited—they’re all double-checked and recorded to yield an accurate picture of the company’s financial health and activity.
At the end of the fiscal year, The bookkeeper works with a CPA to make necessary adjustments. During this process, the bookkeeper relies on information provided by the CPA to accurately reflect the financial position and performance of the company. The adjustments are made to ensure that the financial statements comply with relevant accounting principles and accurately represent the company's financial standing.
The CPA, being an expert in accounting and tax regulations, analyzes the financial data and identifies any discrepancies, errors, or omissions that require adjustments. They provide the bookkeeper with a list of adjustments to be made to the financial statements based on their thorough examination and understanding of the company's financial affairs.
The adjustments typically involve revising various accounts, such as adjusting entries for accruals, prepayments, depreciation, and amortization, among others. The bookkeeper collaborates closely with the CPA throughout the process to ensure that all adjustments are accurately recorded and supported by appropriate documentation and are in compliance with accounting standards.