Overview
A small family-owned and run vineyard operation, producing wine through a custom crush facility and running a home-based tasting room, relied on outside support to maintain its financial and compliance records. Their priority was simple: clean, timely financials for their tax CPA. Yet behind the scenes, a hidden issue was brewing that could have caused significant trouble.
Through a routine review, we uncovered a critical breakdown in their compliance fund tracking. What appeared to be a minor spreadsheet discrepancy revealed a deeper gap in internal controls, one that the client had no idea existed. Stepping in, we were able to improve a bad situation quickly (but not without pain).
This case study explores how the issue surfaced, how we addressed it, and why it underscores the importance of diligence in accounting.
The Challenge
The client trusted their compliance support to handle fund tracking. Whenever their compliance contact requested additional funding, the client would transfer the amount without question. But something didn’t add up.
As we reviewed the compliance fund activity, we noticed that the tracking spreadsheet didn’t accurately reflect incoming transfers. In some cases, the amounts were misrecorded. In others, they weren’t recorded at all.
This meant there was no accurate record of the fund balance, putting the client at risk of overfunding, underfunding, or misreporting, none of which they could afford.
What looked like a simple bookkeeping oversight carried far more serious implications.
Our Discovery
When we identified the inconsistencies, our first step was to validate the data and confirm the pattern. The errors weren’t isolated; they reflected a systemic failure in how the compliance tracker was being maintained.
We brought our findings directly to the client, explaining the vulnerabilities in clear, straightforward terms. We acknowledged that the issue may have been careless. Still, we also addressed the more difficult possibility: the lack of proper internal controls left the door open to more serious problems.
The conversation was candid, but necessary. They needed to understand the gravity of what had been missed.
Transform Your Business Today
The Intervention
Our role wasn’t only to correct the numbers, but also to guide the client toward a stronger position.
We outlined the risks, clarified where the process had broken down, and recommended transitioning to a more organized and reliable compliance provider. We provided encouragement, support, and the firm direction necessary to help them make the best decision for their business.
This wasn’t just about fixing a spreadsheet; it was about rebuilding trust in their compliance systems.
The Outcome
Protea was part of the solution, and on our recommendation and introduction, the client decided to move to a more structured and reliable compliance service. Once the change was made, they expressed genuine relief. They were grateful that the issue had finally been caught, especially since no previous bookkeeper had flagged it.
The shift brought them:
- Peace of mind
- Accurate fund tracking
- Confidence in their compliance process
- A stronger foundation for future financial reporting
They now have clarity they didn’t realize they were missing. And we are avoiding significant compliance issues!
Why This Case Matters
This experience was a powerful reminder of why our work goes beyond bookkeeping.
Business owners are pulled in countless directions, from vineyard operations to winemaking to sales trips to staffing and everything in between. They don’t have the time to dig into the fine details of financial entries or compliance tracking.
They rely on us to be their eyes.
Every transaction must be treated with the same scrutiny we’d expect for our own finances. Diligence, integrity, and proper controls protect clients from risks they may never see coming. Good processes and reconciliation go a long way toward ensuring accurate numbers are reported and keeping people safe and in compliance.
❝ Sometimes the smallest discrepancies reveal the most significant risks. With the right guidance, those risks can be turned into opportunities to strengthen processes and build long-term confidence.❞
