How a System Health Check Can Help the Quality of your Books
Are you confident that your accounting systems are running optimally and efficiently for your business? By conducting a regular accounting file health check you can rest assured your accounting file remains accurate and clean. This improves the overall quality of your books enabling you to make more informed business decisions.
How does a system health check work and why it’s important:
Checks for errors and inconsistencies
In certain instances business owners may find themselves with a high turnover of bookkeepers or find they’re trying to cut costs by taking on some of the bookkeeping responsibilities themselves, but let’s face it… not everybody is a bookkeeping expert! These are certain scenarios that can lead to errors in your accounting systems. During a health check your accountant may check for duplication, recording of valid ABN’s, bank reconciliation, chart of accounts, etc. It’s important to have an accountant periodically review your system to check for any inconsistencies which may prove to be a nightmare come tax time!
Review & Recommendations
Once your accountant has completed a thorough review of your accounting system, they will then be able to provide you with information on the current status of your file and offer suggestions. Discovering any pain points early on is imperative to keeping your accounting file reliable and usable and sets you on the right path to avoiding errors in the future.
Plan for the future
It’s important to ensure your file is showing up to date and accurate data to enable you to make informed business decisions. Perhaps you have set a quarterly budget of $500 for office supplies but due to incorrect allocation it looks like you have more room for spending when in reality you’ve gone over budget. Once you’re confident your accounting file is producing valuable information and running as it should, you’ll be able to use this information as a guide for your monthly/quarterly/annual budgeting and have a clear picture of your outgoings vs. incomings.
Are you confident that your Xero accounting file is setup correctly and running smoothly and optimally for your business? Why not conduct a system health check! At Sum and Substance we understand the importance and need for reliable accounting data to allow business owners to make informed business decisions. Please contact us if you would like more information about our Xero Health Checks. We can be reached at (03) 9424 9447 or info@sumsubstance.com.au. You can directly book in a time to chat by clicking here.
