Dr. Ryan Moriarty

1. The Complete Guide to AI Bookkeeping for Small Businesses By Dr. Ryan Moriarty, PhD, Founder at Prof Moriarty LLC (operator of Done For You Tax) | September 03, 2025 | Accounting and AI After helping more than 2,000 small business owners get clean, audit‑ready books, I distilled a simple framework any owner can follow. We call it the DFYT 24‑Hour Books Framework. It blends AI with U.S.‑based bookkeepers and licensed tax pros, so you get accurate financials fast and at about half the cost of traditional firms. Why most bookkeeping breaks down Owners wear too many hats. Records slip. Then tax time bites. The IRS reminds every new business to keep complete, accurate records and even provides the template in Publication 583. Missing returns get expensive quickly. As the IRS states, “The penalty is 5% of the tax due for each month or part of a month the return is late,” up to 25%. The SBA also urges consistent bookkeeping that starts with the basics, including a balance sheet and clear expense tracking. The DFYT 24‑Hour Books Framework This method came from real client work, including cases with 18 months of backlog caught up in under 48 hours. It works in three phases. Phase 1: Rapid Intake and Reconcile Key activities ● Secure access to banks, cards, payroll, and commerce platforms. ● Normalize data with AI‑assisted categorization, then reconcile to statements. ● Build a clear audit trail that matches the IRS recordkeeping model in Pub 583. Proof point: Journal of Accountancy documents practical AI gains for CPAs in automation, drafting, and data analysis, which shorten prep cycles and raise quality. Phase 2: Automation and Exception Review

2. Critical success factors ● Automate categorization rules, vendor mapping, and bank feed checks. ● Route anomalies to human review with checklists and materiality thresholds. ● Close monthly with variance reviews and cash‑flow targets. Proof point: McKinsey shows finance functions that embrace AI and automation reduce cycle times and operating cost while improving control quality. Phase 3: Filing, Forecasting, and Monthly Rhythm Implementation steps 1. File accurately and on time. If a balance remains, plan payments to avoid extra charges, since the IRS adds a 0.5% monthly failure‑to‑pay penalty up to 25%. 2. Create a 13‑week cash forecast tied to your P&L and balance sheet. 3. Review smart dashboards each month. Lock the books. Reset targets. Best practice: The SBA’s finance guidance aligns with a recurring close, simple dashboards, and clear owner responsibilities. Measuring success Track these signals: ● Close speed: under 3 business days from month‑end. ● Categorization accuracy: 98% or better based on sampling. ● On‑time compliance: zero late filings or penalties across quarters. ● Cash certainty: forecast error within 10% at 4 weeks out. Leaders who harden these workflows see faster decision cycles and stronger strategic impact from finance, a pattern echoed in recent guidance for finance teams adopting AI. Dr. Ryan Moriarty, PhD, leads AI‑assisted small business bookkeeping at Done For You Tax, built under Prof Moriarty LLC. For clean books in 24 hours and affordable bookkeeping services that scale with your company, visit the site, our Instagram, or watch deeper dives on YouTube.