Score 0 for all “Yes” and non-applicable answers. Non-applicable only applies if for example you are a service business without stock. It does not apply if for example you do not understand the question or do not consider it relevant to your business. Score the value in [ ] for all “No” answers. Add up your total score and see how well you rate.

1)Do you reconcile your Bank and Credit Card Accounts with Bank and Credit Card Statements monthly or more frequently? [5]

2)Does your Debtors (Customer) Control Account, balance with your Debtors (Customer) Age Analysis Report? [3]

3)Are all amounts reflected in your Debtors Aged Analysis Report either collectable or covered by a Provision for Bad Debts? [2]

4) Do you allocate Debtor payments against the invoices being paid (open item)? [2]

5) Does your Creditors (Suppliers) Control Account balance with your Creditors (Suppliers) Age Analysis Report? [3]

6) Does your Stock Control Account agree with your Stock Valuation Report? [3]

7) Are all values reflected in the Stock Valuation Report realisable or covered by a Provision for Obsolete Stock? [2]

8) Do you physically count and adjust stock values at least once a year? [2]

9) Does your accounting system allow negative stock balances? This often distorts the average costs of stock. [1]

10) Do you have an explanation for all clearing and suspense account balances? [2]

11) Do you provide for depreciation and / or hire purchase interest on a monthly basis? [1]

12) Does your Salary & Wage Account agree with your Payroll Gross Payment Summary? [2]

13) Do you account for leave liability? [1]

14) Do you prepare and analyse Management Reports at least once a quarter? [2]

15) Do you compare actual financial results against budget? [1]

16) Do you revise your budget (if required) during the year? [1]


Score Results

0 to 5 This is a good score - if you have been honest. You can rely on the accuracy of your accounting records with confidence.

6 to 10 This is an acceptable score, with some room for improvement.

11 to 15 This is a poor score with lots of room for improvement.

15 and more Your accounting records are a disaster and require urgent attention.

Also see How timely are your records?