Guidance on Preventing Year-End Bookkeeping Discrepancies

We’ve been using Wave accounting to manage our books, do monthly reconciliations, and categorize transactions. On our end, things seem accurate and organized; however, this is the second year that our CPA has informed us that our fiscal year does not reconcile with what was reported to the IRS at the end of the prior year. To address this, our CPA has input a journal entry to correct the starting balance.

In this session, I’m looking for guidance to better understand why this discrepancy might be happening, what common issues could cause it, and how we can ensure our bookkeeping is being done correctly moving forward. I’d appreciate advice on best practices and what we should be doing throughout the year to make our end-of-year tax process go more smoothly with our accountant.