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Case study · Health & wellness
Wellness studio bookkeeping case study: 7 years of books rebuilt from bank statements
A health and wellness studio near Chicago with two employees and about $600,000 a year in revenue was seven years behind on its books and its federal and state filings, with no usable records from its previous bookkeeper. Steingard rebuilt all seven years from the bank and card statements, the owner filed every backlogged year, and the studio has been current on monthly books and filings for more than three years.
At a glance
| Client | Health and wellness studio, 2 employees, about $600K annual revenue |
| Location | Greater Chicago area, Illinois (served remotely) |
| Services | 7-year rebuild · IRS and state notice support · monthly bookkeeping · quarterly filings · 1099s and W-2s |
| Software | QuickBooks |
| Working together | More than 3 years |
| Before Steingard | After |
|---|---|
| 7 years of books and filings not done | All 7 years rebuilt; backlogged federal and state returns filed |
| No usable records from the previous bookkeeper | Every transaction rebuilt from bank and card statements |
| Personal and business spending mixed together | Personal and business separated across every loan and card |
| IRS and state notices piling up | Payment arrangements agreed; current ever since |
| Owner overwhelmed by the backlog | Monthly books, quarterlies, 1099s and W-2s on time |
The problem
The owner runs a busy movement and pain-recovery studio with a lot of referrals and repeat clients. The business itself is simple. The books were not: they had not been kept for seven years, and neither had the federal and state filings.
Her previous bookkeeper had left her with nothing to work from, so there was no file to clean up, only bank statements. Personal and business spending had been mixed across her accounts, loans and credit cards, and notices were arriving from the IRS and the state.
What we did
- Rebuilt the books from raw statements. We pulled seven years of bank and credit card statements, extracted the transactions, and imported them into QuickBooks.
- Recategorized everything. Every transaction was reviewed and categorized, every loan and credit card worked through, and personal spending separated from business.
- Got the filings caught up. With clean books for each year, the owner was able to file every backlogged federal and state return.
- Worked through the notices. We helped her reach payment arrangements on the IRS and state notices, and she has stayed current since. Along the way we found opportunities to clear some of the debt, and she received money back from the IRS on the backlogged years.
- Monthly bookkeeping from here on. The studio is now on monthly books, files its quarterlies on time, and issues 1099s and W-2s on schedule. We also help the owner keep her personal finances organized so the mix-up does not happen again.
Results
| Measure | Result |
|---|---|
| Years of books rebuilt | 7 |
| Time to finish the rebuild | About a year and a half |
| Backlogged returns | All filed, federal and state |
| IRS and state notices | Payment arrangements agreed; now current |
| Money back | Received from the IRS on backlogged years |
| Relationship | More than 3 years |
The owner went from seven years of uncertainty to books that close every month and filings that go out on time. She is no longer worried about what the next letter will say.
Common questions
Can you rebuild books when there are no records at all?
Yes. For this studio we rebuilt seven years from bank and credit card statements alone, extracting the transactions, importing them into QuickBooks and categorizing every one.
How long does it take to catch up seven years of bookkeeping?
For this client, about a year and a half, done alongside the backlogged federal and state filings. A smaller backlog takes much less. We quote cleanup after a diagnostic review.
Do you work with businesses outside California?
Yes. This studio is in the Chicago area. The books are in QuickBooks, so we work remotely.
Books in the same shape?
Cleanup is quoted after a diagnostic review of your file. Monthly bookkeeping is $199 to $999 a month. See pricing · More case studies