ok..  so in addition to my 1040s I do among, other returns about 50 S Corp returns.  Almost without exception I am the one that runs the general ledger so I know I have clean financial statements.  For the ones that I don't run the G/Ls I remote in my client's computers using TeamViewer and clean things up and make any necessary adjustments.  

It is very rare where I just take 100% prepared client financial statements and prepare an S Corp return.. (mostly because those financial statements are not trustworthy and are a mess) Well anyway. new S corp client.. I really didn't want them or need them as a client but they were referred to me and I thought I would take them on.  Well the bookkeper sends me the income statement and balance sheet and general ledger and what do i see.. Items costing llike $ 150 being set up an an asset to be depreciated.  Another one that really tells me she knows very little about S corps is there is a line item on the Income statement called S Corp Owner Health insurance.  

Why is that a red flag?  Well there should not be a balance at year end in S Corp Officer Health inurance.. that should have been credited and Officer wages should have been debited.. This lady also does the W-2s and I have not seen them yet but from what I can see so far there was no S Corp Health Inurance additon to wages.  

I should have stuck to my instincts on this one and politely passed when presented the opportunity to take them on.  Ok.. rant over.. about 8 pm saturday night.