Zach spent late nights poring over spreadsheets for his café, manually entering every sale and deposit. He thought his in-house process was airtight. When he handed those ledgers over to ProfitWise—expecting a simple handoff and relief—our ProfitGuardians uncovered a hidden problem within hours. What looked like rock-solid books turned out to contain duplicate income entries, and correcting that mistake immediately put thousands back into Zach’s pocket before his next tax bill.
Here’s what we see all too often: when workflows aren’t followed and reconciliation procedures are skipped, income gets recorded more than once. That inflates net income on the profit and loss report, often doubling or more than doubling the true figure.
Why It Matters
Inflated Income on P&L | Extra Federal Income Tax
$1,000 | $220
$2,000 | $440
$5,000 | $1,100
$10,000 | $2,200
$20,000 | $4,400
$50,000 | $11,000
$100,000 | $22,000
Beyond the tax overpayment, inflated profits give a false sense of cash availability. You might plan expansions or hire staff based on numbers that aren’t real only to discover you can’t cover those costs when bills come due.
How ProfitWise Puts Money Back in Your Pocket
The most common mistake we see, happening all the time, is clients recording duplicate income in their accounting software. For example, they record an invoice and later record that the invoice was paid. Then, when the deposit for the invoice payment downloads into the bank feed, they mistakenly record that deposit again as separate sales income instead of matching it to the invoice already recorded. That one sale is now booked twice, doubling income on the books.
When this error is left uncorrected, the income statement shows inflated net income, sometimes double the true figure. Since taxes are paid on every reported dollar, this error directly translates to overpaying the IRS.Assuming an effective tax rate of 22%, Every $1,000 of inflated income that we correct is $220 back in your pocket. Every $10,000 corrected is $2,200 back in your pocket.
And duplicate income isn’t the only culprit. Inflated net income also occurs when expenses are missed. This happens easily when reconciliations aren’t performed consistently. At ProfitWise, our rigorous reconciliation workflows catch these errors too. By ensuring all expenses are properly recorded, we reduce inflated income and lower your tax burden even further.
The ProfitWise Difference
At ProfitWise, we use strict reconciliation procedures and monthly reviews to prevent duplicate entries, uncover hidden errors, and make sure expenses are accurately captured. Our detail-oriented bookkeeping keeps your profit and loss statement accurate and ensures you only pay taxes on real income. That means more cash stays where it belongs — in your pocket and in your business.
If you want bookkeeping that works tirelessly to put more money back in your business, let’s talk.
Contact us today to get started
The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
If you are looking for any of the following, we can help you!
EB-5 Visa Business Plans
EB5 Business Plans
L1A Business Plans
L Visa Business Plans
L-1 Visa Business Plans
E2 Business Plans
E2 Visa Business Plans
E1 Business Plans
E1 Visa Business Plans
Business Plan for Investor Visa
Business Plans for Immigration and Visa Purposes
Business Plan for Visa Application
Market Analysis
Feasibility Studies
Investor Visas Business Plans
NIW Business Plans
NIW Personal Endeavor Plan
NIW Personal Statement
EB-2 Visa Business Plans
Visa Business Plans
[113].png)
[167].png)
