The Situation

A real estate investor operating five separate companies — including two being shut down — had eight months of uncategorized and unreconciled activity.

All entities were operating within a single QuickBooks file, making it difficult to distinguish performance, track project costs, or prepare for year-end reporting.

The Risk

• Inaccurate financial statements
• Misstated inventory for fix-and-flip properties
• Blurred entity separation
• Limited visibility into project-level profitability
• Increased year-end tax preparation complexity

Without correction, the owner was making decisions without reliable data.

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Our Approach

We began with a full eight-month cleanup:

✔ Categorized and reconciled all historical activity
✔ Separated operational activity for five entities
✔ Rebuilt the chart of accounts to properly classify fix-and-flip properties as inventory
✔ Recorded necessary journal entries to align financial reporting

After restoring baseline accuracy, we shifted from cleanup to structure:

✔ Delivered updated P&L and trial balance reports
✔ Implemented project-level tracking for each fix-and-flip property
✔ Established transaction rules to streamline recurring activity
✔ Created systems to transition from reactive bookkeeping to proactive advisory support

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The Result

✔ Clean, reconciled financials across all entities
✔ Accurate inventory classification for real estate projects
✔ Clear project-level profitability tracking
✔ Reduced administrative friction going forward
✔ A foundation for strategic financial review instead of historical repair

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Long-Term Impact

With clean books and project visibility in place, the business can now evaluate profitability per property and operate with confidence heading into year-end.