Catch-Up Bookkeeping
California S-Corp Medical Professional Unlocks $170k+ Tax Savings
Discover how Apex Bookkeeping helped a California S-Corp medical professional clean up years of neglected books, reconcile accounts, and unlock significant tax savings while strengthening compliance.
Jun 30, 2025
overview
A California-based S-Corp medical professional with a mid-sized practice and multiple revenue streams approached Apex Bookkeeping with three years of neglected records. Previous bookkeeping inconsistencies left transactions miscategorized, expenses missing, and accounts unreconciled. The client needed accurate, audit-ready books to support amended returns and ongoing tax planning.
Challenge
The practice faced several critical issues:
Prior bookkeepers had left accounts unreconciled dating back to 2022
Missing and miscategorized transactions overstated taxable income
Personal and business expenses were commingled, creating S-Corp compliance risk
Chart of Accounts was inconsistent, making collaboration with the tax advisor inefficient
No clean records for proactive tax planning or amended returns
Solution
Apex Bookkeeping completed a comprehensive cleanup and compliance review:
Reconciled all bank and credit card accounts dating back to 2022
Reviewed and recategorized transactions across three years
Identified missing expenses and corrected income reporting
Continued use of QuickBooks Online, with a restructured Chart of Accounts for tax professional alignment
Coordinated with the client’s outside tax advisor, who prepared amended returns based on the corrected books
Provided compliance guidance: S-Corp wages before distributions, separating personal vs. business expenses, and protecting the corporate veil
Delivered clean, audit-ready books in less than 60 days
Established ongoing monthly bookkeeping to ensure accuracy and enable the tax advisor to generate actionable tax insights year-round
Result
Business Return (1120S // CA100S) | Original Return Summary | Amended Return Summary |
|---|---|---|
Federal | $0 Due | $0 Due |
California | $54,000 Due | $21,000 Overpayment |
Personal Return (1040 // CA540) | Original Return Summary | Amended Return Summary |
|---|---|---|
Federal | $150,000 Due | $5,100 Overpayment |
California | $42,000 Due | $0 Due |
Values Rounded for Privacy & Demonstration
Amended returns prepared by the tax advisor showed dramatic improvements:
Federal and state liabilities reduced by six figures
Overpayments identified and refunded
R&D credits re-applied correctly
Year-end tax planning enabled with confidence
Impact:
More than $170k in tax savings unlocked
All accounts reconciled and books made fully compliant
Strengthened S-Corp compliance (wages vs. distributions, no commingling)
Reliable financial foundation for future planning and filings
Ongoing partnership for accurate monthly reporting and tax insight generation