Accounting Treatment

Were your transactions posted to the right accounts?

• Transactions and their account classification
• Chart of accounts and agreed rules
• Abnormal posting patterns

Misposted transactions, each with the correct account proposed.

CFO — an error here distorts every report built on top of it.

Did you expense what should have been capitalised — or the reverse?

• Large expenses with a lasting benefit
• Recorded assets and their dates
• The agreed capitalisation policy

Items likely misclassified, with the impact on profit and assets.

Owner — it changes both your reported profit and your tax.

Was every expense and revenue charged to the period it belongs to?

• Prepaid expenses
• Income collected in advance
• Allocation across periods

Items needing allocation or adjustment, with the proposed entry.

CFO — the basis for the month’s result actually being the month’s result.

Is depreciation calculated and charged consistently across all assets?

• Asset register and in-service dates
• Depreciation rates and methods
• Posted depreciation entries

Assets not depreciated or depreciated inconsistently, with the difference.

CFO — a frequently forgotten line with a cumulative impact.

Have you provisioned for what deserves a provision — doubtful debts and dead stock?

• Receivable ageing and old debt
• Dead and slow-moving inventory
• Existing provisions

An estimate of provisions to raise or adjust, with the proposed entry.

Owner — a balance sheet that ignores its likely losses deceives its owner first.

What exactly do I do now to make my books right?

• Every finding raised in this section
• Affected accounts and amounts
• Target period

A book of proposed entries ready to review and post — debit, credit and narration for each.

Accountant — turns a finding into an executable action in minutes.