How can I help her fix the business's accounting?

Question

My sister and her husband own a very small construction company that is about to go under. I told her since I work in bookkeeping that I can help her organize her company's books and see what I can do to help...the problem is that in three years they've not kept any records whatsoever! I'm overwhelmed and don't know where to start. I'm sure at this point nothing I can do can dig them out of the hole they are in but I want to help.

Answer 1

Start with the bank account assuming they had a bank account. If you can reconcile each month then the cash receipts and disbursements have something to tie to.
Then try to nail down who owes them money and try to find were the cash receipts have come from in the past.
Make a check register out of all the canceled checks and try to get the payables nailed down.
I have done this before when a bookkeeper/owner's wife went insane and wouldn't let anyone see the books until her shrink made her quit the job. It took a teem of us to do it they didn't have a clue who they owed or who owed them and vendors wouldn't leave things without payment.