How Unprofessional Bookkeeping Endangered Legal Compliance and a Good Bank Rating for Our New Client

The owner of a company with a turnover in the tens of millions CZK approached us. The company specializes in servicing electrical installations, plumbing, heating, gas distribution, and appliances. She suspected that something was wrong with her company’s accounting. The accountant had long ago received all the necessary documents for preparing the financial statements and the corporate income tax return for 2024, but was unable to deliver any outputs or specify a concrete deadline for completion.

Until the time came to deal with the financial statements, the client believed that the accounting was in order. Why? The accountant repeatedly assured her that everything was being processed, under control, and there was no reason for concern.

As the deadline for filing the tax return approached and the owner received only repeated assurances instead of completed documents—such as “it’ll be ready soon”—her anxiety grew. She therefore asked us to analyze the current situation. We connected the company’s accounting software to our unique Controlling system, which works like a traffic light—immediately visualizing problem areas.

Image: Example of data visualization in Jaspar Controlling (not an actual image of the company described in this case study). Showing the Czech application environment.

 

Jaspar Controlling Revealed Significant Mistakes

Once we completed the basic analysis, the client was shocked. In Controlling, one red warning after another appeared. The volume of analyzed data was so large that at first glance, everything could seem fine. However, a detailed breakdown and visualization of the records showed the opposite. It was clear that the original accountant had not been truthful about the real state of the accounting for a long time.

What did our system uncover? For example:

• Several hundred unmatched items in bank accounts.
• Discrepancies in the accounting journal and bank account balances (non-matching balances).
• A difference between the accounts payable ledger and account 321 (Suppliers) exceeding half a million CZK. The balances in account 321 and the accounts payable ledger should be identical.
• A difference between the issued invoices ledger and account 311 (Receivables) in the thousands of CZK. Again, the balances in the ledger and account 311 should match.
• Million-crown amounts in “Cash in Transit” accounts.
• Missing or incorrectly posted documents, unclear advances and liabilities.

 

Accounting Reconstruction as the Only Possible Solution

Given the timing of the client’s request, there were not many options left. By March 31, 2025, it was clear that the current accountant could not complete the accounts, which could jeopardize the company’s good bank rating and expose it to penalties for late tax return submission.

Therefore, we agreed with the client on an accounting reconstruction for 2024. Cooperation with the original accountant was immediately terminated, and from that moment, the company relied entirely on our team.

Thanks to our large team, experience, efficient processes, and the use of modern technologies, we are able to resolve everything even in a critical accounting situation. In cooperation with a tax advisor, we are managing not only the reconstruction but also the subsequent audit. We are also able to guarantee the submission of all documents to the tax authority on time by July 1, 2025.

Based on our ongoing cooperation, the client decided to continue with us after the audit and reconstruction, entrusting us with the company’s accounting in the coming years.

 

Are You a Business Owner? What to Take Away from This Case

This case clearly highlights several key points:

1. Trust, but verify: Even if you trust your accountant, it’s important to have tools for independent control. Jaspar Controlling is exactly such a tool.
2. Early detection of errors saves money: Accounting reconstruction is always more expensive than ongoing and correct bookkeeping. This is doubly true for complex and extensive accounting or short processing times.
3. Accurate data is the foundation for management: With quality accounting, you gain valuable data for financial management and reporting, helping you better run your company. Disorder in accounting means disorder in financial management. And without proper financial management, the risk of errors and financial losses increases rapidly.
4. Take an interest in the state of your accounting and company finances: Whether an accountant makes a mistake out of carelessness or intentionally, in the end, it is you who bears the greatest responsibility and the greatest penalty in the form of financial loss, damaged reputation, or worse bank ratings. Even if the client can sue the accountant and claim damages, it was she who risked problems with authorities and the bank and went through very stressful moments, unsure whether everything would turn out well.

 

Martin Jaspar, owner of the accounting firm, adds: “This case is a textbook example of how expensive poorly managed accounting can be. A higher investment in a quality and proven accounting services provider always pays off. Not only do you save money on potential reconstructions and minimize the risk of penalties, but you also gain reliable data for better strategic decision-making and financial management of your company. Our Controlling system and Management Reporting can help you with that. Thanks to them, you gain certainty and clarity.”

 

Could this be your case too?

Do you suspect something is wrong with your accounting? Don’t wait until it’s too late! Contact us. Even a quick initial analysis with our Controlling can reveal hidden problems before they cause serious damage.