Expert: Arthur Naman - 6/29/2009

Question
Dear Sir:
I just started working as an intern with a company. what are the first things i should look for in thier accounts? also they don't have an accountant other than me and i need to organize all their transactions and all their records. they use QuickBook software and I'm not familiar with it but I'm getting around it. i just want to know what should i look for in their financial statements? how do i decide what types of accounts should be added to the Chart of Accounts, knowing it's a service company and they don't have any tangible products?

Regards,
Ola  

Answer
Begin by seeking advice from the CPA or whoever is preparing their annual tax returns. Find out what they need for tax purposes.

The place to begin is seeing if accounts have been reconciled -- especially the checking accounts; then A/R and A/P. Do A/R and A/P accurately reflect amounts owed to the company and amounts the company owes.

If you are doing payroll, the payroll accounts should accurately reflect salaries, payroll taxes and the payroll tax liabilities.

In general, the various accounts, especially the asset, liability and equity accounts should be accurate.

That should give you a start on what needs to be done.