A common result looks like this. The individual entries score well, because the bookkeeper codes transactions carefully. Hygiene and decision readiness score well below that. The owner had a sense something was off. The report shows what. The day-to-day work is right, but the books are not yet answering the questions the owner needs to run the business.
That pattern is why the score by area matters more than the total.
What a health check reviews
The health check in Navigator, our software, runs 51 checks against a QuickBooks Online or Zoho Books file. It connects read-only through the accounting system's own consent screen, so nothing in the file is created, changed or deleted. Each check is measured against a published standard, such as GAAP, the Internal Revenue Code, Department of Labor rules or APQC benchmarks, and each finding cites the standard it was measured against.
The checks fall into four groups.
Cash and forward visibility. Are the bank and card accounts reconciled, is there a forward cash forecast, and how quickly are customers paying?
Reporting and performance. Do the statements tie together, is revenue recognised in the period it was earned, and is there a budget to compare against?
Finance rhythm and ownership. When does the month close, who reviews the numbers, and who follows up on a figure that looks wrong? A file cannot show these, so the check asks six short questions.
Systems and financial structure. Are transactions coded consistently, are closed periods locked, and are payroll remittances, contractor payments and other compliance items covered?
How to read the score
The report gives a composite score and a score for each pillar, with severity capping each pillar so one serious issue cannot be averaged away by many small successes.
Read the pillars before the total. Each kind of low score points somewhere different.
| Low area | What it usually means | Where to start |
|---|---|---|
| Accuracy and integrity | Errors in the entries themselves | Reconcile and correct before anything else |
| Bookkeeping hygiene | The entries are right but the file is untidy | Clear old items, fix coding, lock closed periods |
| Tax and compliance exposure | Obligations that may be missed or misfiled | Take the findings to your CPA |
| Decision readiness | The books are not built to answer questions | Add a close date, a review and a budget |
A low tax and compliance score is not a tax opinion. It means the file shows signs worth a CPA's attention, such as contractors who may need a 1099 or payroll liabilities that do not clear.
What to do with the findings
Work in order. Accuracy first, because everything else is built on it. Hygiene next, because a tidy file makes the monthly close faster. Compliance findings go to your CPA. Decision readiness comes last, because it depends on everything before it and on a rhythm someone has to own.
Each report ends in one of four recommendations: address it internally, scope a focused project, establish an ongoing rhythm, or take no further action. If the books are healthy, the report says so.
What a health check will not tell you
It is not an audit, and it gives no assurance under the accounting standards that govern reviews and compilations. It reads what the accounting system records. It cannot see a contract that was never entered, an invoice sitting in someone's inbox, or a commitment made on a call.
It also cannot tell you whether the business is doing well. A perfectly kept file can describe a business that is losing money. The check tells you whether you can trust the numbers, not what they say.
Frequently asked questions
What does an accounting health check look at?
It reviews an accounting file against published standards, checking reconciliation, revenue recognition, payroll and contractor obligations, period controls, coding consistency and the monthly close rhythm, and scores the results by area.
Is an accounting health check the same as an audit?
No. A health check is an automated diagnostic. It does not give assurance on the financial statements and does not replace an audit, review or compilation by a licensed CPA.
Does running a health check change my QuickBooks file?
Not with a read-only connection. Navigator's health check connects through Intuit's standard consent screen with read-only accounting scope, so nothing is created, changed or deleted.
What does a low decision readiness score mean?
That the books are not yet set up to answer business questions on time, usually because there is no fixed close date, no regular review or no budget to compare against. The entries themselves may still be accurate.
How long does an accounting health check take?
A few minutes for the automated checks, plus about a minute for six questions on how the close and review work. Larger files take longer to read.
Where CFOLogic fits
The Accounting Health Check is free and runs in Navigator. A named CFOLogic advisor walks you through the findings, and the report is yours whether or not you work with us. If the findings call for it, we scope a focused cleanup or a monthly close, and we hand compliance findings to your CPA.