Testimonials & Case Studies
How does NorthStar Bookkeeping help clients like property investment firms, law offices, and service providers? Find out in the testimonials and case studies below.
What Clients Are Saying About NorthStar Bookkeeping
NorthStar Bookkeeping Case Studies
Property Investment Firm Case Study
Our client, a nationwide property investment company specializing in multi-family rental housing, needed accurate financial data. They were working through an aggressive expansion plan and needed up-to-date reports for refinancing and further investments in new properties at a moment’s notice.
They had already invested in multiple properties throughout the US and it was crucial to keep track of expenses per property to know which properties were making money and which were not. The client also needed to be able to review the effectiveness of the property management companies they were working with.
The Northstar Solution
The NorthStar team used “classes” in Quickbooks to assign transactions by property and create an overall set of reports that could also be broken down by individual properties or subset groups. We tracked property management expenses per property as well, making sure we tied reserve accounts each month.
Client Success
With accurate and timely bookkeeping in place, this client was able to add more properties, refinance loans, and act swiftly on investment opportunities as they arose.
They were also able to track renovation costs as well as analyze which properties were not making money. Keeping track of 1099/1098s at the end of the year would have been all but impossible without accurate bookkeeping, and all of these changes helped the client run their business in an efficient manner.
Fast Facts
- Class accounting in QuickBooks
- Up to date reports allowed the client to make the most of investment opportunities
- Monitored and tracked investment profitability
Service Provider Case Study
Our client, a franchise owner of a service based company with 20-30 employees, wanted an accurate and on-demand A/R balance for the high-volume, small-value credit card transactions they worked on.
When they came to us, they were allocating sales to a holding account and transferring them to income when the credit card receipts were deposited into their bank.
The problem with this was that it was never accurate, and it would never reconcile to the franchise reports. Cards would be declined, plus there were tips to account for. They were running their accounts on a cash basis, so they were experiencing a problem every month with credit card transactions that were run in one month and deposited a few days later after month’s end.
The Northstar Solution
The NorthStar team linked the franchise’s existing software to QuickBooks, which brought in the invoices. We were able to match the deposits accurately to the invoices in QuickBooks and we converted the client from a cash-driven basis to accrual.
By setting up an accurate, on demand Accounts Receivable system, we were also able to catch mistakes and allocate tips properly. At year’s end, we calculated that we had found thousands in card amount mistakes, declined transactions, and invoices that were just never paid.
Client Success
Thanks to their engagement with NorthStar, this client had an up-to-date and accurate Accounts Receivable account so that they could follow up on any declined payments or unpaid invoices quickly. They were also able to agree their figures to the sales and franchise fees that the franchise showed each month.
Fast Facts
- Identified the best type of accounting system for the client
- Made the most of applications and software that help the client run their business more effectively
- Implemented the tools the client needed to follow up quickly on unpaid invoices
Law Firm Case Study
A law firm had been double counting income via their trust account (an escrow account for clients’ funds). With the higher income that they were showing as a result of the bookkeeping errors, they couldn’t understand where all their money was, and why their books made no sense. They were also overpaying on taxes.
The Northstar Solution
The NorthStar team began by cleaning up the firm’s books, setting up the trust accounting correctly, and allocating transactions to Client Trust Liability on the balance sheet. We also made sure that the Liability Account agreed with the Client Trust Bank Account each month and that any transfers were correctly recorded.
When these systems were in place, we trained everyone in their office who was working in QuickBooks so that they understood the new system. We also sent the client a monthly management report for a clear and timely picture of their business’s finances.
Client Success
This firm is one of NorthStar’s oldest clients, and they have relied on our accurate reports to grow their business for years.
After starting out with almost no knowledge of their financial picture, this client went from getting accurate monthly reports to requesting that we track their multiple client referral sources to analyze where their marketing was most effective. We incorporated relevant reporting so that they could see where their clients were coming from easily.
These streamlined and accurate reports also made it possible to join an industry peer group and make relevant business comparisons.
Fast Facts
- Law Firms have specialized bookkeeping for Trust accounting
- Small bookkeeping mistakes can lead to costly problems
- Reports customized to fit the clients’ needs
- Accurate reports empowered the client to grow and assess problem areas
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