Hassan Sitambuli

LumaCart E-commerce — Bookkeeping Cleanup & Reconciliation Case Study Scope: Bank reconciliation, duplicate detection, and expense reclassification Situation (Client Problem) The company’s books were inherited with incomplete bank reconciliation, duplicate expense entries, and several misclassified transactions. Ledger balances did not match the bank statement, and financial reports could not be relied upon for decision-making. Approach I performed a structured reconciliation process comparing the bank statement with the ledger export, identifying duplicate transactions, incorrect postings, and classification errors. Cleanup adjustments were prepared to remove duplicates, correct expense categories, and properly record customer refunds. Key Findings • Duplicate supplier payment overstated expenses • Advertising and processing fees misclassified as inventory • Customer refund recorded incorrectly as revenue • Ledger totals did not match bank before reconciliation Outcome After cleanup, the ledger was fully reconciled to the bank statement, duplicate transactions were removed, and expense categories were corrected. Financial statements became reliable, margin visibility improved, and the business gained confidence in its reporting for decision-making. Skills demonstrated • Bank reconciliation • Error detection • Duplicate transaction cleanup • Expense reclassification • Financial accuracy improvement • Cleanup journal entries Cleanup Impact Summary Metric Before Cleanup After Cleanup Impact Revenue Overstated (refund recorded as revenue) Corrected revenue after refund adjustment Accurate sales reporting Expenses Overstated due to duplicate supplier payment Duplicate removed Expense accuracy restored Expense Classification Ads and fees recorded as inventory Reclassified to correct accounts Improved margin visibility Expense Classification Ledger did not match bank Fully reconciled Reliable financial statements Financial Statements Not reliable for decision-making Clean and audit-ready Improved confidence in reporting Bank Reconciliation Working Paper Date Description Bank Amount Ledger Amount Match Status 01 Jan Opening Balance -$12,450.00 $0.00 Mismatch 03 Jan Shopify Payout #431 $4,280.00 $4,280.00 Match 04 Jan Facebook Ads -$320.00 -$320.00 Match 05 Jan Supplier Payment — Inventory -$2,150.00 07 Jan Stripe Payout #778 $3,920.00 $3,920.00 Match 08 Jan Shopify Payout #432 $4,100.00 $4,100.00 Match 09 Jan Facebook Ads -$320.00 -$320.00 Match 10 Jan Supplier Payment — Inventory -$2,150.00 12 Jan PayPal Fees -$145.00 -$145.00 Match 14 Jan Shopify Payout #433 $4,600.00 $4,600.00 Match 16 Jan Supplier Payment — Inventory -$2,300.00 -$2,300.00 Match 18 Jan Facebook Ads -$410.00 -$410.00 Match 20 Jan Stripe Payout #779 $3,500.00 $3,500.00 Match 22 Jan Refund Customer -$220.00 24 Jan Shopify Payout #434 $4,750.00 $4,750.00 Match 27 Jan Payment Processing Fees -$160.00 -$160.00 Match 29 Jan Supplier Payment — Inventory 31 Jan Stripe Payout #780 -$2,420.00 $3,870.00 -$4,300.00 Mismatch -$2,150.00 Match $220.00 Mismatch -$2,420.00 Match $3,870.00 Match Issues Identified During Cleanup Summary of discrepancies found during reconciliation Issue Type Date Duplicate Entry Description 05 Jan Supplier payment recorded twice in ledger Recommendation Expenses overstated Remove duplicate ledger entry Incorrect expense categorization and Facebook Ads recorded as Inventory Expense margin distortion Misclassification Multiple dates Misclassification Payment processing fees recorded as 12 Jan / 27 Jan Inventory Expense Cost of goods overstated Customer refund recorded as revenue instead 22 Jan of negative sales Revenue overstated Incorrect Posting Reconciliation Difference Impact Various Ledger totals did not match bank statement before cleanup Financial statements unreliable Reclassify to Marketing Expense Reclassify to Processing Fees expense account Record as refund / sales return Perform full reconciliation and adjustment entries Cleanup Adjustments & Journal Entries Date Entry type 05 Jan Reversal Multiple Reclassification 12 Jan / 27 Jan Reclassification 22 Jan Correction Month end Reconciliation Account Affected Inventory Expense Marketing Expense (+) / Inventory Expense (-) Processing Fees (+) / Inventory Expense (-) Sales Returns Various Adjustment Amount Reason Remove duplicate -$2,150.00 entry $1050.00 (example total ads) Correct expense classification Correct expense $305.00 classification Refund incorrectly -$220.00 recorded as revenue Balance difference Align ledger with bank resolved statement Impact Reduce overstated expenses Improve margin accuracy Proper cost reporting Reduce overstated revenue Clean financial records