Solving the "Mystery Balance" for Virtue Screen Printing
We successfully identified a ghost balance in "Pending Deposits," fixed a faulty Square integration, and rebuilt accurate P&L statements for 2023 & 2024.
The Client Profile
Virtue Screen Printing LLC, owned by Kaila Garcia, is a custom merchandise provider known for high-quality prints. Like many modern retailers, they utilize a hybrid tech stack, integrating payment processors like Square directly into QuickBooks Online (QBO) to streamline sales data.
However, automation is only as good as its configuration. A misaligned integration had created a significant distortion in their financial reality.
The Operational Challenge
The client approached us with a critical issue: their financial reports were untrustworthy. Despite transactions appearing categorized in the checking account, the Balance Sheet showed a persistent, unexplained balance in a "Pending Deposits" asset account.
1. The "Pending Deposits" Mystery
The client did not use a "Pending Deposits" workflow operationally, yet the account held a significant balance. This "Ghost Money" meant their books showed more cash assets than they actually had, skewing the Balance Sheet and making tax planning impossible.
2. P&L Distortion (2023-2024)
Because revenue was getting stuck in this holding account rather than closing out to the bank feed properly, the Profit & Loss statements for 2023 and 2024 Year-To-Date were inaccurate. The client needed a forensic rebuild to trust their numbers again.
The Strategic Intervention
We were brought in as QuickBooks Online & Integration Experts. Our mission was to initiate a forensic diagnostic to trace the flow of funds and stop the Square integration from "dumping" data incorrectly.
Technical Execution & Strategy
Integration Audit & Repair
We thoroughly assessed the Square-to-QBO data pipeline. We identified that sales receipts were being created but not deposited.
- Traced the "Pending Deposits" balance back to unclosed Square transactions.
- reconfigured the integration settings to map sales directly to the correct "Undeposited Funds" or Bank Account workflow.
- Evaluated the necessity of the integration and optimized it to prevent future duplicates.
Transaction Reconciliation
Once the source of the error was stopped, we had to clean up the historical mess. We manually reconciled the 2023 and 2024 ledgers.
- Matched the "Ghost" pending transactions against actual bank deposits.
- Cleared the fictitious balance from the Balance Sheet.
- Verified that every dollar in the Checking Account was properly categorized and tied to a real source.
Financial Reporting Rebuild
With clean data, we regenerated the key financial statements.
We produced accurate Profit & Loss statements for 2023 and 2024 YTD, giving Kaila a clear view of true profitability. We also delivered a balanced Balance Sheet that accurately reflected the company's assets and liabilities.
The Results
Virtue Screen Printing now has financial statements that match their bank account, enabling confident decision-making for the future.
"Needed YTD P&Ls and Balance Sheets via Quickbooks. Would absolutely recommend Tallywise!"