Health Check

What Is an Accounts Health Check?

When we begin working with a new client, one of the first things we do is complete a detailed Accounts Health Check.

Think of it as a financial check-up for your business.

The purpose of the Health Check is to review your bookkeeping systems, accounting records and financial data to identify any issues that may be affecting the accuracy of your reporting, compliance obligations or business decision-making.

Many business owners are surprised to discover that small errors in their accounting system can accumulate over time and create significant problems with GST, payroll, reporting, cash flow management and year-end tax preparation.

Our Health Check helps identify these issues early and provides a clear plan for moving forward.

Why Is an Accounts Health Check Important?

An Accounts Health Check provides confidence that your financial information is accurate and reliable.

It helps answer important questions such as:

· Are my accounts up to date?

· Are my bank accounts reconciled correctly?

· Is my GST being reported accurately?

· Are my payroll obligations correct?

· Can I rely on my financial reports?

· Are there any compliance issues I need to address?

· Is my accounting system set up correctly?

By identifying potential problems early, we can help prevent costly mistakes and provide a stronger foundation for future growth.

What We Review During a Health Check

Every business is different, but a typical Health Check includes the following areas.

Data File Review

We begin by reviewing the overall structure and status of your accounting file.

This may include:

· Financial year settings

· Payroll year settings

· Year-end rollover requirements

· Historical adjustment journals

· Reconciliation of accountant adjustments

This helps ensure your accounting system is aligned with your accountant’s year-end figures and reporting requirements.

Chart of Accounts Review

A well-structured chart of accounts is essential for meaningful reporting.

We review:

· Account structure

· Account coding

· Reporting categories

· Header accounts

· Opportunities to improve reporting clarity

The goal is to ensure your financial reports provide useful information that supports decision-making.

[Internal Link: Accounting Systems Setup]

Bank and Credit Card Reconciliations

Bank reconciliations are one of the most important controls within any bookkeeping system.

We review:

· Bank account reconciliations

· Credit card reconciliations

· Loan account reconciliations

· Outstanding transactions

· Duplicate transactions

· Unusual balances

Accurate reconciliations help identify errors, omissions and potential issues before they become larger problems.

[Internal Link: Account Reconciliation]

Asset Accounts

Asset accounts often contain hidden issues that affect financial reporting.

We review:

· Inventory balances

· Fixed assets

· Motor vehicles

· Asset purchases

· Depreciation entries

· Asset coding

This helps ensure your Balance Sheet accurately reflects the assets held within your business.

[Internal Link: Small Business Inventory (Stock Control)]

Accounts Receivable

Outstanding customer balances can have a significant impact on cash flow.

We review:

· Aged receivables

· Customer balances

· Collection processes

· Debtor reconciliations

Where required, we can recommend improvements to debtor management and collection procedures.

[Internal Link: Cash Flow Management Services Perth]

Liability Accounts

Liability accounts should accurately reflect amounts owed by the business.

We review:

· Loans and finance agreements

· Creditors balances

· Aged payables

· Lease liabilities

· Interest allocations

· Account reconciliations

This helps ensure your liabilities are accurately reported and understood.

Payroll Review

Payroll compliance is becoming increasingly complex.

We review:

· Payroll setup

· PAYG withholding

· Superannuation liabilities

· Leave accruals

· Payroll reconciliations

· Single Touch Payroll reporting

Incorrect payroll setup can lead to compliance issues, penalties and inaccurate reporting.

[Internal Link: Payroll Management Services Perth]

GST, BAS and IAS Review

GST and BAS compliance is a critical component of every Health Check.

We review:

· GST coding

· BAS balances

· IAS balances

· ATO account reconciliations

· BAS payment processing

· Compliance obligations

This helps ensure your GST and PAYG obligations have been reported correctly and that your accounting records align with your ATO account.

[Internal Link: BAS Agents Perth]

What Happens After the Health Check?

Once the review is complete, we provide a summary of our findings and recommendations.

You’ll gain a clear understanding of:

· What is working well

· Any issues identified

· Potential compliance concerns

· Recommended corrections

· Opportunities for improvement

This allows you to make informed decisions about the next steps and gives us a roadmap for ensuring your bookkeeping records are accurate and reliable.

Book Your Accounts Health Check

Whether you’re looking for a new bookkeeper, concerned about the accuracy of your accounts or simply want confidence that everything is running as it should, an Accounts Health Check is the ideal place to start.

Talk to Perth Bookkeeping Professionals today to arrange your Accounts Health Check and gain clarity over your business finances.