Bank and credit-card accounts may not be reconciled. Transactions may be sitting in vague or uncategorized accounts. The balance sheet may contain negative, outdated, or unexplained balances. Automated bank rules may also be processing transactions quickly without classifying them accurately.
A Financial Health Check is intended to help a business owner identify areas that appear organized and areas that may require further attention.
In the accompanying lesson, Dr. Brian Routh walks through the six areas considered during a Financial Health Check and explains what the owner receives afterward.
The Six Areas Considered
The Financial Health Check considers:
- Reconciliation reliability — Whether bank and credit-card records appear current and supportable.
- Account structure — Whether the chart of accounts organizes transactions into meaningful categories.
- Financial-reporting clarity — Whether the income statement and balance sheet tell a coherent financial story.
- Red-flag identification — Whether unusual balances, uncategorized transactions, or unexplained patterns require clarification.
- Fund accounting, when applicable — Whether an organization’s records can distinguish resources by purpose, fund, class, project, or restriction.
- Accounting-system configuration — Whether accounts, bank rules, opening balances, tracking categories, and reports appear configured appropriately.
A Financial Health Check is a preliminary bookkeeping-focused review. It is not an audit, tax review, legal review, fraud examination, assurance engagement, or guarantee that every transaction is correct.
Request a Complimentary Financial Health Check
For business owners who are unsure whether their bookkeeping records are current, reconciled, organized, and producing meaningful reports, TheAccountingDr offers a complimentary Financial Health Check.
Request your Financial Health Check at TheAccountingDr.com.
