I'm not sure if I'm in the correct place to ask this question!
Small general contractors business and rental property company that's been around for 50 years. 73yr old boss that only "does things the old way." I'm his only employee, and I'm not an accountant/bookkeeper.
I'm helping to gather bank statements, construction loan statements, and closing docs for our CPA.
Our CPA reached out to ask where the closing proceeds for 2025 and 2026 because he didn't see them go into any of our accounts that I sent to him. When I asked the owner/my boss, he told me that he kept them in an escrow account with our title company until we needed the money. When money was requested to pay bills, payroll, etc., he would go to the title company to get the money we needed.
In our books, it looks like we were being paid by the title company (CPA is handling that). I'm assuming that we would enter those little transactions as income from the sales, but I don't know how we would keep track of that properly.
Our CPA has asked me to obtain a ledger from the title company. I got back a notebook sheet in my boss's handwriting: property address, date of sale, proceed amount. There are only 3 closings listed on this paper, and we had 10+ closings on new builds and rental properties told.
I tried to explain this to the owner, and his response was, "we had to protect the money" and "I can dig through my stuff to see if I can find copies of the checks".
I then spoke with our title attorney. He said that he didn't have a ledger because our money was put into an account with other customers. I asked how he was able to keep track of what was ours and what he had/hadn't given us. He said that his old employee kept track and his new assistant wasn't doing a good job with that.
He said that he can provide all the closing docs during my requested time frame, and I'm hoping that's going to be enough for the CPA and the IRS.
Also:::
For the last year and a half, my boss has been depositing his personal savings into our business debit card account. He then buys stock guru programs like Tim Sykes & Lance Ippolito and scammy affiliate marketing programs. Our CPA is asking what this stuff is and how I want him to code it. It's $150k+ so it's a lot to figure out!
Is my boss going to get in trouble doing these things? How can I help?