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Detecting and Addressing Uncoded Liabilities

📄 Detecting and Addressing Uncoded Liabilities​

Why Cleanup and Ongoing Bookkeeping Must Catch These Issues

 

Uncoded liabilities, also known as hidden or undisclosed liabilities, pose significant threats to a business's financial stability, reputation, and even legal standing.

 

These are debts or obligations that aren’t properly recorded or categorized in a company’s financial system—either by error or oversight. The result?
 

Your financial reports may show a healthier cash position or profit margin than reality, leading to:

  • Misinformed business decisions

  • Tax compliance risks

  • Potential audit problems or legal exposure

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At FPG-USA, we help businesses detect and clean up uncoded liabilities during both financial cleanup projects and ongoing monthly bookkeeping. This prevents surprises and ensures your financial data is accurate and trustworthy.

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— Richard Kahn, Founder & CFO, FPG‑USA

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1. What Are Uncoded Liabilities?
2. Examples of Uncoded Liabilities
3. Why It’s a Problem
4. How We Fix Uncoded Liabilities During Cleanup

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3️⃣ 🚨 Why It’s a Problem

Uncoded liabilities can cause:

  • Overstated cash and profit

  • Balance sheet errors (bad data for banks, investors, or buyers)

  • Tax risk (IRS or state agency notices)

  • Poor financial decision-making due to incorrect reports

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​​​​​4️⃣ 🛠️ How We Fix Uncoded Liabilities During Cleanup

As part of FPG-USA’s Cleanup Services, we:

  • Review all Uncategorized Liability accounts

  • Check Ask My Accountant and other temporary entries

  • Reconcile liabilities with bank accounts, payroll reports, and loan docs

  • Reclassify liabilities correctly into accounts like:

  • Accounts Payable

  • Payroll Liabilities

  • Customer Deposits

  • Taxes Payable

  • Loans Payable

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We deliver this on a fixed-fee basis, so there are no billing surprises.

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5️⃣ 🗓️ Ongoing Maintenance: Why It’s Not Just a One-Time Fix

Cleaning up uncoded liabilities is crucial—but so is keeping them clean going forward.

That’s why FPG-USA includes liability review in our Monthly Bookkeeping Services

  • Monthly review of liability accounts

  • Reconciliation of payroll liabilities, loans, deposits, and sales tax

  • Proactive alerts when new uncoded liabilities appear

  • CFO advisory calls (for clients at higher service tiers) to review and correct issues in real time

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🚀 Need help fixing uncoded liabilities—and preventing them in the future?

Let’s have a friendly, no-pressure conversation with our CFO.

 

​👉 Schedule Your Free Strategy Call ›​​​​​​

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5. Ongoing Maintenance: Why It’s Not Just a One-Time Fix
Schedule

1️⃣ 🧾 What Are Uncoded Liabilities?

Uncoded liabilities are financial obligations your business owes but hasn’t properly classified in QuickBooks Online or your accounting system.

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They often sit in:

  • Uncategorized Liability

  • Ask My Accountant

  • Misused Suspense Accounts

 

These “temporary” accounts can remain unresolved for months or years—leading to financial misstatements.

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2️⃣ 🔍 Examples of Uncoded Liabilities​​​​​​​​​​​​​​​​​​​​​​​​

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