--- title: "Are My Books Ready for My CPA or a Lender? A Checklist | MCC" description: "Seven tests that show whether your books are ready for tax prep or a loan application, and what to do about each one that fails. Plain language." url: "https://mcc-solutionsnj.com/bookkeeping/guides/are-my-books-ready-for-my-cpa-or-lender" --- Bookkeeping guide · Updated October 26, 2026 # Are My Books Ready for My CPA or a Lender? A Checklist Sending messy books to a CPA tends to cost more, take longer and produce a rougher result. Lenders look at the same books and form an impression in minutes. These seven tests show where you stand. By [Matthew Coleman](/about), MCC Solutions Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) · [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) **Free tools:** [Depreciation schedule calculator](/bookkeeping/depreciation-calculator) · [Was that craft fair worth it?](/bookkeeping/craft-fair-profit-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## 1. Every account matches its statement For each bank, card and payment processor account, the balance in your books on the last day of the period should equal the balance on the statement, after listing the items still in transit. If any account is unreconciled, stop there. Nothing else in the reports can be trusted until it is. A reconciliation that ties to the penny is the single best sign that books are in good shape. A reconciliation that was forced with an adjusting entry is a warning, not a pass. ## 2. Few or no uncategorized items Look for accounts named Uncategorized, Ask My Accountant, Suspense or Opening Balance Equity with balances that are not nearly zero. Each one is a pile of decisions someone has not made yet. A handful of recent items is normal. A pile that goes back a year is the work a CPA will charge to sort out. Clear the oldest items first, since they are hardest to remember and most likely to be wrong. ## 3. Income ties to what you invoiced and deposited Total sales in your books should be close to the total in your invoicing or payment system, with the difference explained by refunds, fees and timing. If a payment processor deposits net of fees, make sure the fees appear as expenses and not as lost income. If you have sales tax, check that it sits in a liability account and not in income. ## Want us to handle it? We get behind or messy books current, tell you what we found, and hand you a clean starting point, in QuickBooks, Xero or Excel. **Price:** Free review of your books first, then a written quote before any work starts. [Get a free review and quote](/bookkeeping/#interest) [How catch-up and cleanup work](/bookkeeping/catch-up) ## 4. Loans, payroll and owner activity are in the right place A loan payment should reduce a loan balance and add interest expense, not post entirely as an expense. Owner draws and contributions should not appear as business income or expense. Payroll should tie to your payroll reports. These are the entries that lenders and CPAs check first, because mistakes here distort profit. ## 5. Prior periods are locked Once a period is final, lock it so nobody changes it by accident. A lender who sees a profit figure that changes from one request to the next loses confidence quickly. If prior periods are not final, finish them and then set the closing date in your software. ## 6. Reports tell a story you can explain Read the profit and loss and balance sheet like a stranger. Does a big expense have a reason? Are there negative balances where there should be none? Are there accounts you cannot explain? If you cannot explain a line, a lender or CPA will ask. Write a short note about anything unusual. It saves a round of emails. ## 7. Support is easy to find For large items, know where the invoice, contract or statement is. You do not need to scan everything. You need to find it within a day. A cleanup kit that walks through these tests in order, with an account map and a status page, can keep the work organized. Whether the books are ready for a specific lender or tax purpose is for your CPA or the lender to say. ## Common questions **How long does cleanup take?** It depends on how many months are behind and how much is uncategorized. A rough count of unreconciled months is the best first estimate. **Can I fix this myself?** Often, yes, for reconciliation and categorizing. Bring in help for loans, payroll and anything you are unsure of. **Will my CPA charge less if the books are ready?** Often, since less time goes to sorting. They set their own fees, so ask. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online)[### Xero Bookkeeping and reconciliation in Xero for New Jersey small businesses, including cleanup and moving from spreadsheets or another program. Xero →](/bookkeeping/software/xero) More guides - [How to Explain Month-Over-Month Variances in Your Books](/bookkeeping/guides/how-to-explain-month-over-month-variances) - [Occupancy vs Net Per Night: What Makes a Rental Profitable](/bookkeeping/guides/occupancy-vs-net-per-night-airbnb-profit) - [Contractor Offer vs Salary: What the Hourly Rate Is Worth](/bookkeeping/guides/contractor-offer-vs-salary-what-it-is-worth) - [A Client Onboarding Process for a Solo Bookkeeper](/bookkeeping/guides/client-onboarding-process-for-a-solo-bookkeeper) Free tool - [Bookkeeping health check](/bookkeeping/health-check) Related - [QuickBooks Cleanup Kit (Excel)](/toolkits/quickbooks-cleanup-kit) - [How to clean up a messy QuickBooks file](/bookkeeping/guides/how-to-clean-up-a-messy-quickbooks-file) - [Free books check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Excel workbook ### Small Business Loan-Readiness Workbook See debt service coverage, current ratio and debt-to-equity before the bank does, and keep track of the documents a lender will ask for. [See what is inside ($39)](/toolkits/loan-readiness-workbook) Also in the [Business Finance Ratios Bundle](/toolkits/business-finance-ratios-bundle): 3 products for $89 instead of $117 separately. ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)