How to Health Check your Accounts

Why do a Health Check?

Outsourcing your bookkeeping makes sense. It enables you to spend time doing the important work of developing your business and ensuring that you are not overwhelmed by “the Bookkeeping Monster”.

However, this is your business and you are ultimately responsible for its health. One of the most dangerous things you can do is abdicate this responsibility to your bookkeeper.

You have all heard the old saying of “garbage in/garbage out”. There is no point in analysing your financial reports if they have been compiled from incomplete or inaccurate information.

You must be able to answer confidently that the figures are accurate and queries have been answered before generating the reports you need to create strategies to keep your business strong.

Doing a “Health Check” regularly and discussing this information with your bookkeeper, accountant, business coach or mentor is a must.

How often do I need to do a Health Check?

We recommend that a Health Check is done monthly, after the bank reconciliations have been completed and before printing off your monthly reports. At the very least, it should be done quarterly before the Business Activity Statement is lodged.

The following information is a guide so that you will be able to perform a mini Health Check on your own data files. It is not comprehensive, but it does cover key points to look for.

If you discover a problem during the Health Check, then further investigation is required. We suggest you discuss the options with your Accredited Pure Bookkeeping Licensee or accountant if you are unsure.

 

Steps to performing a Health Check:

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We trust you have found this guide informative and useful. Please contact us if you need any assistance with understanding or implementing any of the ideas that have been discussed.

We wish you every success!

 

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