The 2026 Financial Roadmap: Why Now Is The Time to Automate & Outsource
Every December, business owners sit down with the same thought: “Next year, we’ll finally get organized.” But between tax season, project deadlines, and unexpected challenges, that resolution often fades before Valentine’s Day.
How to Stop Guessing and Start Managing the Money That Keeps Your Jobs Moving
Struggling to track cash in your construction business? Learn how to forecast, manage retainage, and build a 13-week cash flow plan with Parkins Financial.
The Year-End Close Checklist for Nonprofits & Construction Firms
As the calendar winds down, most organizations are thinking about holidays, bonuses, and time off. But for accountants, controllers, and executive directors, the end of the year signals something else entirely —- audit and review season. Whether you run a construction firm tracking dozens of active jobs or a nonprofit juggling multiple grants, the year-end close is your chance to tidy up your financial house. Done right, it sets you up for a smooth audit or financial review, strengthens your credibility with funders and bonding agents, and ensures you start the new year with accurate, reliable numbers. At Parkins Financial, we specialize in Quickbooks Online (QBO) cleanups, construction accounting, and nonprofit audit preparation. Over the years, we’ve developed a repeatable system that helps our clients glide through year-end instead of grinding through it. Here’s your comprehensive checklist to make year-end closing less stressful — and far more productive: Step 1: Reconcile Everything (and We Mean Everything) It might sound basic, but bank and credit card reconciliations are the foundation of accurate books. Why it matters: Checklist: ✅ Reconcile all bank accounts through the last statement date of the fiscal year. ✅ Reconcile credit cards, lines of credit, and loan accounts. ✅ Review payroll liability accounts to ensure all withholdings were remitted. ✅ For nonprofits, verify petty cash and restricted account balances. ✅ For construction firms, confirm vendor retainage and customer retainage balances match supporting schedules. 💡 Pro Tip: If your reconciliation screen in QBO shows “difference = $0.00,” you’re good. If it doesn’t — stop and fix it now before moving on. Step 2: Review Accounts Receivable (AR) and Accounts Payable (AP) Outstanding receivables and payables can make or break your year-end reports. You don’t want auditors calling out stale AR balances or discovering missing invoices. Checklist:✅ Review the AR aging report. Write off uncollectible balances or reclassify retainage receivable. ✅ Review the AP aging report. Post all bills received but unpaid as of year-end. ✅ For construction firms, tie AR and AP balances to job schedules and retainage tracking. ✅ For nonprofits, confirm any amounts due to or from grantors are recorded properly. ✅ Clean up old vendor credits, unapplied payments, and duplicate entries. 💡 Pro Tip: Use QBO’s Vendor Balance Detail and Customer Balance Summary reports to catch hidden transactions. Step 3: Clean Up your Chart of Accounts Over time, the chart of accounts tends to bloat with unused or redundant accounts. Year-end is the perfect time for a cleanup. Why it matters: Checklist: ✅ Merge duplicate expense accounts (e.g., “Office Supplies” and “Supplies”). ✅ Archive unused accounts. ✅ Verify proper grouping for construction cost codes or nonprofit functional expenses. ✅ For nonprofits, confirm program expenses are categorized as Program, Management & General, or Fundraising. ✅ For construction, verify Cost of Goods Sold (COGS) account reflect labor, materials, subcontractors, and equipment.💡 Pro Tip: Use QBO’s “merge accounts” feature carefully — and always back up your data first. Step 4: Confirm Payroll Accuracy Payroll is often the single largest expense for both construction firms and nonprofits — and the first place auditors look for errors. Checklist: ✅ Verify that all pay periods are posted in the correct fiscal year. ✅ Reconcile W-2 wages to the general ledger ✅ Review payroll liability accounts (taxes, insurance, benefits). ✅ For construction, allocate wages correctly to jobs or overhead. ✅ For nonprofits, ensure payroll allocations to programs or grants match approved budgets. 💡 Pro Tip: If your team uses timesheets, export them and cross-check hours against job or grant allocations. It’s much easier to fix now than after your audit begins. Step 5: Inventory, Retainage, and WIP (for Construction Firms) Construction accounting requires special attention to Work In Progress (WIP) schedules and retainage. These items don’t exist in standard small-business accounting, which is why construction firms often struggle with financial reviews. Checklist:✅ Prepare a WIP schedule listing all active jobs: ✅ Identify overbillings and underbillings and adjust revenue accordingly.✅ Reconcile retainage receivable and payable to contract documents.✅ Review inventory or materials-on-hand balances and adjust to physical counts.✅ Confirm subcontractor 1099 data is complete and accurate. 💡 Pro Tip: Bonding companies and CPA reviewers expect WIP schedules at year-end — even for smaller contractors. Accurate WIP data can increase bonding capacity and credibility. Step 6: Restricted Funds and Grant Balances (for Nonprofits) For nonprofits, the year-end focus shifts to grant management and restricted funds. Funders want assurance that restricted funds are used correctly and that revenue is recognized properly. Checklist:✅ Reconcile all grant income and expense accounts.✅ Verify restricted cash balances tie to restricted fund balances.✅ Review deferred revenue (unspent grants) and release amounts to income as funds are spent.✅ Confirm all donor restrictions are documented in the ledger.✅ Prepare a grant summary schedule for the audit — list each grant, total award, expenditures to date, and remaining balance.💡 Pro Tip: Class tracking and location tracking in QBO can make this process automatic if set up properly. If not, consider a QBO Cleanup before next year. Step 7: Review Fixed Assets and Prepaids Auditors will expect a clear record of capitalized assets, depreciation, and prepaid expenses. Checklist:✅ Review your fixed asset register. Add any new vehicles, equipment, or computers purchased during the year.✅ Record depreciation for all applicable assets.✅ Verify disposals or sales are recorded properly.✅ Review prepaid expenses (insurance, rent, software subscriptions) and amortize monthly.💡 Pro Tip: Create recurring journal entries in QBO to automate depreciation and prepaid amortization going forward. Step 8: Prepare Supporting Schedules Supporting schedules are the “evidence” your CPA or auditor will request first. Having them ready shortens review time — and reduces your bill. Checklist:✅ Accounts Receivable Aging (final, post-adjustments)✅ Accounts Payable Aging (final)✅ Fixed Asset & Depreciation Schedule✅ WIP Schedule (construction)✅ Grant Summary (nonprofit)✅ Payroll Summary by Job or Program✅ Retainage Receivable/Payable Schedule✅ Trial Balance and General Ledger 💡 Pro Tip: Store these schedules securely (Google Drive, SharePoint, or your CPA’s portal). Avoid emailing sensitive data like payroll records. Step 9: Perform a Trial Balance
QBO Cleanup Chores
How to Clean Up Vendors, Customers, and Product/Service Lists in QuickBooks Online Messy data in QuickBooks Online (QBO) can slow down your workflow, clutter your reports, and lead to accounting mistakes. One of the most common sources of frustration is outdated or duplicate vendor, customer, and product/service lists. Cleaning up these lists improves accuracy, speeds up data entry, and gives your business a clearer financial picture. This guide walks you through a detailed cleanup process for vendors, customers, and items in QBO—step by step. 00: Why Clean Up These Lists? Over time, QBO company files accumulate unnecessary or incorrect entries: 01: Step 1: Review Current Lists Before cleaning, assess what’s currently in your QBO: 02: Step 2: Identify Duplicates and Inactive Entries Duplicates and unused records are the main targets for cleanup: 03: Step 3: Merge Duplicate Vendors or Customers If duplicate records have transactions, QBO allows you to merge them. 04: Step 4: Make Vendors, Customers, or Items Inactive Sometimes, it’s safer to make a record inactive than to delete or merge it. 05: Step 5: Standardize Naming Conventions A consistent naming structure improves list readability and reduces duplicates in the future. 06: Step 6: Review Mapping to Accounts and Classes While cleaning up lists, ensure that items and vendors are properly mapped to correct accounts and classes: 07: Step 7: Archive, Backup, and Track Changes Before making bulk changes: 08: Step 8: Ongoing Maintenance Plan Cleaning up once is great—but keeping it clean is even better. 09: Tips for Nonprofits If you’re using QBO for a nonprofit, you may have: 10: Tips for Construction or Trade Businesses Common issues include: 11: Tools to Speed Up the Process While QBO’s native tools work, consider using apps for bulk edits and cleanups: Final Thoughts Cleaning up your Vendors, Customers, and Product/Service Items in QuickBooks Online pays dividends in speed, clarity, and accuracy. By investing a few hours upfront, you’ll streamline bookkeeping, avoid errors, and gain confidence in your reporting. Done right, this cleanup process sets the stage for better automation, easier reconciliation, and a more scalable QBO setup.
QBO and Bank Rules
Start Automating with Bank Rules in QuickBooks Online Manually categorizing transactions in QuickBooks Online (QBO) can be tedious, time-consuming, and error-prone. But did you know that with the proper setup of Bank Rules, you can automatically categorize 60% or more of your recurring transactions? Whether you’re managing utilities, contractor payments, or subscription services, Bank Rules can simplify your workflow and create more consistent books. This guide walks you through the essentials of QBO Bank Rules—from what they are to how to create, audit, and manage them effectively. What Are Bank Rules? Bank Rules are logic-based instructions that tell QuickBooks Online how to handle incoming transactions from your connected bank and credit card feeds. Instead of manually categorizing each transaction, you can create rules that apply based on specific criteria—like vendor name, transaction amount, or bank text. Key Benefits: Step-by-Step: How to Create a Bank Rule Step 1: Open the Banking Center Step 2: Click “New Rule” Step 3: Name the Rule Clearly Step 4: Set Conditions Step 5: Choose Account and Details Step 6: Auto-Add or Manually Confirm? Common Use Cases for Bank Rules 1: Software Subscriptions 2: Utilities 3: Contractor ACH Payments 4: Office Supplies 5: Recurring Income Deposits How to Track and Maintain Bank Rules How to Review and Audit Bank Rules When NOT to Use Bank Rules How Bank Rules Support Automation and Reporting Final Thoughts: Set It, Test It, Trust It Bank Rules in QuickBooks Online offer an enormous opportunity to improve accuracy, reduce overhead, and streamline bookkeeping. But they require thoughtful setup and regular reviews. Start small, test for a few weeks, and then expand your automation footprint. Want Help Getting Started? We’ll walk you through building and testing your first 10 rules—and give you our customizable rule tracking template.
Account Reconciliation and the Chart of Accounts
Bank Account Cleanup and the Chart of Accounts This step-by-step guide simplifies cleaning up bank reconciliations and the Chart of Accounts in QuickBooks Online. Learn to resolve discrepancies, organize accounts, and ensure accurate financial records. Follow clear instructions to streamline your bookkeeping, enhance reporting, and maintain a tidy, efficient QuickBooks file for better financial management. 1. Bank Reconciliation Cleanup 🔎 Step-by-Step: Identify Issues 1: Run the Reconciliation Report for each bank and credit card account: Go to Accounting > Reconcile > History by Account Look for: 2: Check the Register for Uncleared Transactions: Go to Accounting > Chart of Accounts > View Register Filter for transactions older than 30 days that are still uncleared. Look for: 3: Review Undeposited Funds: Run a Balance Sheet and click into Undeposited Funds Look for: 4: Check Bank Feed Rules: Go to Banking > Rules Look for overly broad or conflicting rules that may be auto-categorizing transactions incorrectly. 🛠️ Step-by-Step: Fix the Issues 1: Reconcile Missing Months: 2: Clear or Delete Stale Transactions: 3: Clean Undeposited Funds: 3: Tighten Bank Rules: ✅ Best Practices 🧾 2. Chart of Accounts (COA) Cleanup 🔎 Step-by-Step: Identify Issues 1: Export Chart of Accounts: Go to Accounting > Chart of Accounts > Export to Excel Look for: 2: Review for Misclassifications: 3: Analyze Naming Conventions: 3: Run Reports for Improper Posting: 🛠️ Step-by-Step: Fix the Issues 1: Merge Redundant Accounts: 2: Reclassify Transactions: 3: Create a Logical COA Structure: 4: Inactivate Unused Accounts: ✅ Best Practices
Quickbooks Cleanup Self-Assessment
Is your Quickbooks Online File a Mess? Start Here If you’ve ever opened your QuickBooks Online (QBO) file and felt overwhelmed by unreconciled accounts, duplicate vendors, or confusing automation rules, you’re not alone. Many business owners and bookkeepers inherit a cluttered system, unaware that it’s quietly affecting cash flow visibility, tax reporting, and day-to-day decisions. That’s why we’re launching a new blog series designed to help you take control of your QBO file—starting with our QBO Cleanup Self-Assessment Checklist. This simple, yet powerful checklist is your first step toward clarity and confidence in your financial records. Whether you’re managing your own books or overseeing a team, this series will walk you through each section of the checklist, showing you what to look for, how to clean it up, and what “done right” really looks like. What’s in the Checklist? 01: Bank Reconciliation Make sure your bank and credit card accounts are reconciled through the most recent month. No transactions should be lingering unreconciled for more than 30 days, and your Undeposited Funds account should be cleared regularly. 02: Chart of Accounts An organized COA is the backbone of clean financials. We’ll cover how to eliminate redundancies, categorize accounts correctly, and create a logical naming structure that supports clear reporting. 03: Vendor & Customer Lists Outdated or duplicated contact records can skew your reports and waste your time. You’ll learn how to clean up vendor and customer data so your lists are accurate and easy to navigate. 04: Product and Service Items Misassigned items can lead to incorrect income or expense reporting. We’ll help you streamline your items list, standardize naming, and ensure inventory tracking is accurate. 05: Automation Rules Bank rules and recurring transactions should save you time—not create chaos. We’ll explore how to review, refine, and reset automation so it actually works for you. How to Use This Series Each post in the series will focus on one section of the checklist. We’ll guide you through: By the end of the series, you’ll know how to classify your file as: Ready to Begin? If your checklist turns up more ⚠️ than ✅, don’t panic. You’re not behind—you’re ahead for recognizing the issues and taking action. And if you need help, we’re here to support you with a free QuickBooks file review. 👉 Schedule Your Free QBO File Review
How to Prep for a QBO Cleanup
How to Prepare for a QBO Cleanup Effort Messy books? You’re not alone. Whether you’ve inherited a QuickBooks Online (QBO) file that’s been pieced together over time or simply outgrown your current setup, a proper cleanup can restore confidence in your numbers, improve reporting accuracy, and save hours of time during tax season or an audit. Here’s how to know it’s time, what to review, and how to get started. Lori Parkins “A growing GC or MEP firm that is approaching the bonding barrier needs to have substantiated, organized, and accurate books. Without it, the CPA firm conducting the review for the bonding agent is going to cost you a fortune.” 01: Signs You Need a Cleanup Over time, QBO company files accumulate unnecessary or incorrect entries: If these sound familiar, it’s time to hit the brakes and clean up. 02: The Risk of Ignoring It Leaving your QBO file in disarray can lead to: Dirty books cost more than time—they hurt your bottom line. 03: Checklist: What to Review Before Getting Started Before diving in, here’s what you (or your cleanup specialist) should assess: This is your roadmap—don’t skip the diagnostic phase. 04: How to Clean Your Chart of Accounts Safely A bloated or misused Chart of Accounts is one of the biggest culprits behind messy reporting. Common fixes: Pro tip: Never delete accounts with historical transactions—merge or make inactive instead. 05: Vendor, Customer, and Product List Cleanup Do you really need three versions of “Home Depot” or a dozen “Consulting” services? Here’s how to streamline: A clean list reduces errors, speeds up data entry, and improves automation. 06: Bank Rules and Automations to Set Once your file is clean, it’s time to automate: Automation won’t fix a broken system—but it will help maintain a clean one. 07: Avoiding Common Mistakes Even experienced users make these cleanup missteps: Always work with a copy first, and document major changes for audit purposes. 08: Cleanup vs. Starting Over Sometimes it’s better to walk away and start fresh. Here’s how to decide: That said, a proper cleanup can preserve your history and reduce future tax headaches—if handled correctly. 09: CTA: Schedule Your File Review A QuickBooks cleanup doesn’t have to be overwhelming—especially when you have a team that’s done it dozens of times across construction, nonprofit, and service-based industries. Let’s take the first step together. 👉 Schedule your free file review now and get a personalized plan for restoring confidence in your books.