Our Unique File Clean-up Service

We are the Masters of File Clean-ups.

 

  DO YOU NEED THIS SERVICE??

    • Your Balance Sheet should be a real “picture” of your business.
    • Open your Balance Sheet in your Accounting file, and change the date range to today’s date.
    • The Balances you see against each account should be REAL, and each account that you see should be REAL and you should know what it is.
    • So if you are seeing Accounts that don’t mean anything to you, like Clearing Accounts, Undeposited Funds Accounts (especially ones with large balances), or if you see Accounts with negative Balances or Accounts with Balances that can’t possibly be true, then you need this service. For example:
        •  a Petty Cash Account with $200,000 in it;
        • a Loan Balance that says that you owe Minus (-) $28000;
        • Bank Balances that look nothing like what is in your Bank
        • an Accounts Receivables Account (Debtors) that show large balances that your Customers DON’T owe you;
        • an Accounts Payables Account (Creditors) that show large balances that you DO NOT owe to your Suppliers;

      WHY DOES THIS MATTER?

    If your Balance Sheet is not a REAL PICTURE OF YOUR BUSINESS, then there is a 99% likelihood that your Profit and Loss is also not truely reflecting the correct Income and Expenses of your business. And if this is the case then you are probably not paying the right amount of Tax and GST, (and more often than not, when we fix these things our clients end up paying LESS TAX and GST, and not more).

    And if your Profit & Loss and Balance Sheet is not a REAL PICTURE OF YOUR BUSINESS, then you are probably making management decisions based on the wrong information (AND THE CONSEQUENSES OF THIS COULD BE SCARY…)

    And if you have a Business Coach, then it is going to be very difficult for them to give you the best advice.

       WHAT DO WE DO?

    • We check the set up of your file, and the focus in on transactions in any Financial Year since your last Tax Return was done. 
    • We will let you know what we have done, and what we have found at the end of the Clean-up.

     

    An Example of  some of the File Clean-up/Health Checks that we run:

    REPORTS/ACCOUNTS STRUCTURE and PREVIOUS YEAR FINANCIAL FIGURES
    We check that your Profit & Loss and Balance Sheet in your Accounting Software reconciles to the Financials prepared by your Tax Agent, for the previous financial year. If it does not we record an adjustment journal to incorporate any changes made by your Tax Agent when producing the previous year’s financials that have not yet been incorporated into your system.
    We check and tweak the Setup of your Chart of Accounts, so it suits your Tax Agents requirements (which we can see from their Financial Reports), but most importantly suits your Management Requirements. 
    For XERO Clients, we design your main reports (Profit & Loss, and Balance Sheet), so they report in a format that is readable and functional. (With QBO, Reckon and MYOB, this is done as part of the Chart of Accounts Structure set-up)
    We check the default Tax Codes against your Accounts in your Chart of Accounts and make sure they are set up correctly to assist you to record accurate transactions from a GST perspective. 
    We look at the set up, and Balances of your Inventory Accounts (if applicable) and make sure that they are set up and being used correctly to reflect correctly in both your Profit & Loss and Balance Sheet.
    Note: Incorrect Inventory transactions can have a very big effect on your bottom line, and the Tax you pay. 
    BANK ACCOUNTS and RECONCILIATION
    We check that all your Bank Accounts and Credit Cards are being reconciled, and that Balances are correct.
    We check you have reconciled (or we reconcile) your Loan/Hire Purchase Accounts.
    We check that you have reconciled, (or we reconcile), your ATO – Activity Statement & Income Tax Accounts and Super Guarantee Account (if you have one)
    We check you have reconciled (or we reconcile) your other (often forgotten) Balance Sheet Accounts, such as Deposits, Bonds, Prepayments, Accruals, Insurance & other Short-term Loans and more…
    We look at your Debtors and Creditors and check they are not going askew (ie. We look for Debtors and Creditors sitting in your reports with zero dollar balances or small balances that shouldn’t still be there (ie. 72 cents), and very old balances that you may consider Bad Debts but have not written off as such in your Accounting file
    PAYROLL
    We check the general set up of your Payroll, in particularly looking at the Payroll Categories/Items and how they are set up and how they are being used. 
    We check the set up of your Superannuation Payroll Items and make sure Super is being calculated correctly on the right payroll items, and not being applied to payroll categories that shouldn’t attract Superannuation. 
    We reconcile the figures you have lodged in the Payroll section (W1 and W2) of your BAS, to the figures you have submitted on your STP Finalisations, and to the figures reporting on your Profit and Loss Report and Balance Sheet.
    We check your Superannuation reconciles between your Payroll Reports and your Profit & Loss and Balance Sheet Reports. 
    GST & Categorisation of Expenses
    We look for any transactions that have been recorded without allocating any GST code to the transaction, make sure they are correct, and allocate a correct GST code when applicable. 
    We check the GST Codes you have used in your transactions in the current Financial Year (plus the previous Financial Year if your Tax has not been done), and fix if necessary.
    We check that you have allocated the purchases of Assets correctly and used the right tax codes. We check you have not accidentally “expensed” assets or incorrectly treated expenses as Assets.
    We check you have treated any personal expenses (drawings/Directors Loan) transactions correctly, and have not accidentally claimed GST on these Personal transactions
    We check for transactions allocated to Historrical Balancing, Opening Balance Equity and Reconciliation Discrepancy Accounts and fix and allocate correctly.
    We reconcile your GST that has been lodged throughout the year with the figures currently in your system (after our checks). If there are any discrepancies we will create a BAS variation for you or your Tax Agent to lodge.
    We check that you have treated loans and hire purchases correctly and have recorded any interest and/or finance charges
    We particularly focus our checks on your Balance sheet accounts for errors. This is where we usually find lots of mistakes that can have a large impact on your Net Profit and the amount of tax and GST that you pay. It is an area that is commonly ignored.

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