3 Things I Look for in a Broken Bookkeeping Setup (and What to Fix First)

Most business owners don’t know their books are broken — until it’s too late.

Maybe your reports don’t match your bank account. Maybe you’re guessing at tax time. Or maybe you’re just not sure if everything’s right.

When I review a new client’s books (or someone asks for a free Tune-Up Report), these are the first 3 warning signs I look for — and what I fix first.

🧾 1. No Monthly Reconciliations

If your bank, credit card, and payment processor accounts aren’t being reconciled monthly, your books aren’t accurate — even if they “look fine.”

What I check:

• Are bank statements and books in sync?

• Are transactions being duplicated or missed?

• Is someone just guessing at ending balances?

📉 Why it matters: One missed deposit or duplicated expense can throw off your entire profit picture — and your tax return.

📦 2. Overloaded or Messy Chart of Accounts

Your chart of accounts is like the blueprint for your books. If it’s overloaded, disorganized, or unclear — everything gets harder to read.

What I check:

• Are there duplicate or vague categories?

• Is everything lumped into “miscellaneous” or “other”?

• Is it tailored to the business, or just the default list?

🧠 Why it matters: Clean categories = clear decisions. Sloppy structure = chaos later.

💼 3. No Real Insight (Just Raw Numbers)

A lot of setups spit out reports that look official — but offer no real insight. You need more than just totals.

What I check:

• Are we tracking income and expenses by month?

• Is there any way to see trends over time?

• Do reports show what matters, or just what’s available?

📊 Why it matters: If the reports don’t help you run your business, they’re just noise.

🔧 What I Fix First

I always start with:

• Monthly reconciliations (so the numbers are solid)

• A cleaned-up chart of accounts

• A quick monthly summary template to give you clarity

That way, no matter what happens next — you know where you stand.

🎯 Ready for a Reality Check?

If you’re not sure whether your books are on track (or quietly hurting you), my free Business Tune-Up Report can show you.

It takes less than 5 minutes to request — and it could save you hours of confusion, or worse.