Initial conversation
We discuss your business, your current setup, and what you need from an accounting relationship.
Review of financials
We review your books and relevant documentation to understand where things actually stand.
Recommendation & scope
We deliver a clear written recommendation and, if applicable, a fixed-price scope for the work ahead.
What it is
The Financial Clarity Assessment is where every new business client relationship begins. It's a structured diagnostic process — not a sales call and not just a meeting. We start with an initial conversation about your business, your current financial setup, and what's working or not working. Then we review your books and any relevant documentation. Then we come back to you with a clear written recommendation and, where applicable, a fixed-price scope for the work ahead.
For most business clients, the Assessment is required before we begin any engagement. We don't price your relationship or make promises about scope until we understand your actual situation — because guessing at complexity serves no one.
Inside the review
The review is systematic and evidence-based. We work through your books area by area — documenting what we find, why it matters, and what business decision it affects. If something doesn't impact accuracy, reliability, or decision-making, it doesn't go in the report.
Financial infrastructure
We review thirteen areas of your financial infrastructure. Each finding is connected to a business impact — not just an accounting defect.
A. Chart of accounts structure
We look at whether your income and expense categories are set up to produce meaningful reports. Overly detailed or collapsed accounts, misclassified items, redundant entries, and missing categories all limit your ability to see what the business is actually doing. Poor structure makes trends unreliable and limits every report that depends on it.
B. Reconciliations
We check whether your bank and credit card accounts are reconciled and current, look for uncleared transactions that span multiple periods, and identify any adjustments that were forced to zero. Uncleared or forced reconciliations are one of the most common signs of a broken workflow — and one of the first things that destroys trust in every report that follows.
C. Transaction integrity
We look at how consistently transactions are categorized — whether similar items are treated the same way across periods, whether there's overuse of catch-all categories like Uncategorized or Ask My Accountant, and whether journal entries have documentation behind them. Inconsistent categorization distorts margins, trends, and every decision built on top of them.
D. Clearing and holding accounts
We check Undeposited Funds, payroll clearing accounts, and any suspense accounts for balances that never clear. Persistent balances in these accounts usually signal a deeper workflow failure — one that compounds over time and masks real problems in your financials.
E. Accounts receivable
We compare the AR balance on your balance sheet to the AR aging detail, look for invoices outstanding beyond a reasonable threshold, and trace credits or unapplied payments to their matching invoices. An AR balance that doesn't tie to the aging report is one of the clearest signs that your revenue numbers cannot be trusted.
F. Accounts payable
We check whether your AP balance matches the AP aging, look for old unpaid bills that are no longer valid, identify duplicate vendors or duplicate entries, and look for expenses recorded outside of normal AP workflows. These gaps create hidden liabilities and make cash flow harder to forecast accurately.
G. Payroll and compensation
We look at whether payroll expenses are broken out in a way that supports reporting and decision-making, check for unexplained payroll liability balances, and identify inconsistencies in how owner compensation is recorded. Payroll is often one of the largest expense categories — and one of the most frequently misrepresented in the books.
H. Sales tax
We look at whether sales tax is being collected and remitted correctly, whether sales tax liability balances on the balance sheet are current and supportable, and whether there are signs of nexus exposure across multiple states that hasn't been addressed. Sales tax errors are some of the most consequential — and easiest to miss until they become a problem with a regulator.
I. Inventory
Where applicable, we review whether inventory is being tracked accurately, whether the cost of goods sold is being calculated correctly, and whether inventory balances on the balance sheet are supportable. Inventory errors flow directly into margin calculations and can significantly misrepresent profitability.
J. Fixed assets and depreciation
We look at whether fixed assets are on the books, whether depreciation is being recorded, and whether the fixed asset schedule ties to the balance sheet. Missing or incorrect depreciation affects both your reported profitability and your tax position.
K. Apps and integrations
We look at what's connected to your accounting system and whether those connections are working correctly — checking for duplicate data entry, sync failures, and apps that are doing unintended accounting work in the background without anyone realizing it.
L. Balance sheet issues
We review the balance sheet for totals that don't reconcile to their subledger detail, negative asset balances, old unexplained entries, loans without stated terms, and missing or incomplete supporting schedules. A balance sheet that doesn't hold together is a sign that the books cannot yet support confident financial decisions.
M. P&L decision-readiness
We assess whether the P&L can actually support the decisions you need to make — looking for volatile margins without explanation, expenses that don't align with operations, and whether class or departmental structure is needed but absent. Accuracy is necessary but not sufficient. The P&L has to be organized in a way that answers real questions about your business.
Strategic observations
Beyond the infrastructure review, we look at the broader financial picture and share observations that go to strategy, structure, and decision-making. These don't always require immediate action — but they matter for where the business is headed.
Tax and entity structure
We look at whether your current entity structure is aligned with your tax position, compensation strategy, and business goals — and flag situations where a conversation with your tax advisor is warranted. This is not a tax opinion; it's a flag that the question is worth asking.
Workflow and process
We note where the way things are being done today is creating friction, errors, or rework — and identify process changes that would make the accounting function more reliable and less dependent on any one person's knowledge or habits.
Reporting and decision support
We assess whether the reports your books currently produce are capable of answering the questions you actually need to ask — and identify gaps between what you're getting and what would genuinely support better decisions.
Areas to monitor
Not everything requires immediate action. We identify areas where the current state is acceptable but worth watching — trends, exposures, or structural questions that could matter more as the business grows or changes.
Recommended path forward
The assessment closes with a recommended path forward — a plain-language summary of what we found, what it means for your business, and what we recommend doing next. This includes a prioritized breakdown of what needs to be addressed immediately, what can be addressed over time, and what is optional but worth considering. If Foundation work is needed, we include a scope and fixed-price proposal. If your books are ready for ongoing accounting, we outline what that engagement would look like. If a different kind of help makes more sense — a targeted advisory project, a referral, or something else — we'll say that clearly too.
The goal is to leave you with a complete, honest picture of where your finances stand and a concrete recommendation for what to do about it — regardless of whether that recommendation leads to work with us.
What happens after
If your books need cleanup or setup work, we'll scope a Foundation project. If they're already in good shape, we'll move straight into an ongoing Fundamentals engagement. If you need help with a specific financial situation, we'll connect you with the right Financial Advisory Project.
And if we're not the right fit — if your situation calls for something we don't do, or if another firm would serve you better — we'll tell you that too.
Ready to start?
Tell us about your business and where you are right now. We'll review your situation and come back with a clear recommendation for what you need.
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