YBB-Initial File Review Checklist

Initial File Review Checklist

Review / Questions and Details / 
File Maintenance
Software / Review Software, Licensing, Billing and Product Support
Product/Version: ______
Serial # ______
Registered Owner of Product______
Owner of Subscription______
Subscription Billing______
Software Support______
User Access / How many users have access? (Online/Remote/Internal)
______(Ensure owner has Full or Read Only Access for all areas of file)
Who has administrator/advisor access? (Password?)
Who has access to payroll?
Create specific user for Bookkeeper
Computers / Type of Network (Stand Alone, Peer to Peer, Server, Cloud)
Location of File: ______
Backup Regime: Device and Frequency: Weekly/Monthly/Quarterly/Annual
File Auditor / Run File Auditor for information (If applicable)
Check Location of File (local)______
CheckCompany File Year/Locked Periods______
CheckLast DateBackup file______
Linked Accounts / CheckAccounts used for linked accounts for:

Banks - Electronic Clearing and Undeposited Funds
Sales - Customer Deposit, Receivables, Discount, Freight
Purchases – Supplier Deposit, Payables, Discount, Freight
Payroll - Wages, Superannuation, Cash and Electronic Payment

Preferences / CheckPreferences

System- Links to other programs, Jobs/Categories assigned, Payroll defaults
Reporting- Ageing and Default Forms
Sales- Default Layout options, Credit Limit, Default Terms
Purchases - Default Layout Options, Default Terms
Inventory - Yes or No
Security - Audit Trail, Locked Periods
GST Status- Cash or Accrual
PAYGW Registration- Monthly/Quarterly
TPAR - Yes or No

Recurring /
Memorised /
Rules Transactions / CheckRecurring/Memorised/Bank Feed Rules Transactions
ReviewList Direct Debits, Bank Loans and Financed Loans
ReviewFrequency, Alerts and Transaction ID
General Journals / Checkif General Journals are used
If YesCheck the type of journals used
IfNosuggest use for private % split monthly (if applicable)
Card Maintenance
Cards Review / Checkfor duplicate cards.
Reviewclient’s use of Customer, Supplier and Employee Card/Contact fields
Review Customerselling details (sale layout, income account, and receipt memo, sales person, shipping method, credit limit and hold).
Review Supplierbuying details (purchase layout, expense account, purchase comment, shipping method)
CheckSupplier payment details (random Check against supplier invoices)
Checkfor split bank accounts for both Suppliers and Employees
Terms / ReviewCustomer termsused and ensure default is correct (Discuss with client of their terms for customers)
ReviewSupplier termsused and ensure default is correct (Check Terms with Supplier Statements)
Account Maintenance
Chart / Checkcomparison of Chart to Accountants Financials
CheckChart for obsolete accounts
CheckHeadings and Subtotals
Tax Codes Assigned / CheckTax Codes assigned to accounts
CheckTax Codes are linked to correct BAS Fields
Account Balances / CheckBalances are same for last tax return lodged from Accountant
CheckBank Feeds transactions are clear or assigned
CheckBank Accounts - Last Date Reconciled (Incl. Bank Loans)
CheckBank Accounts - Unreconciled Transactions
CheckPayPal, EFTPOS, AMEX Accounts Values
CheckElectronic Clearing Accounts – Zero Balance or valid amount
CheckTrade Debtors = Receivables Summary Report
CheckTrade Creditors = Payables Summary Report
CheckStock on Hand = Inventory Summary Report
CheckCredit cards - last reconciled
Loans / CheckFinance Loans e.g., Hire Purchase on Cars
ReviewFinance documents and Check GST
CheckOther Loans - Directors Loans with private expenses used by owner and checkno GST used on personal expenses
Banking
Authority Online Banking / Checkwho is authorised to transfer money/pay bills
Checkwho is authorised to pay employees
Checksecurity process for Online Payments e.g., Token, SMS used
Checkinternet banking access and all users have separate login
Authority Signing Cheques / Checkprocess for Cheque Payments e.g., Two signatories required
Checkrecords e.g. Cheque Butts filled in correctly
Cash / Reviewprocess of End of Day Till Reconciliation
Checkwho has access to petty cash/till
Checkwho banks cash
Checkbank deposit records
Sales
Receivables / CheckOutstanding Debtors

DisplayReceivables Summary report and review 60-90 days outstanding invoices.
Reviewany old/bad debts, check whether write-offs required
ReviewCredits - should credits be applied to current sales or cleared as they are incorrect?

Sales Orders /
Layby And Gift Voucher Payments / CheckOutstanding Sales Orders

Ensure they are current
If old orders with balances, move to an invoice at current date (Discuss with client)
Check PAID orders - Customer Deposits Liability Balance match outstanding Customer Orders payments

CheckLaybys and Gift Vouchers Payments

Ensure they are current
Ensure they marry to register or report of POS system

Customer Statements / Checkfrequency of producing statement
Checklayout of statement and form of delivery (email, post, fax)
Purchases
Payables / CheckOutstanding Creditors

DisplayPayables Summary report and review 60-90 days outstanding invoices.
Reviewany old amounts; Check whether any outstanding amounts should be credited.
ReviewReturns and Debits - should credits be applied to current sales or cleared as they are incorrect?

Checkprocess for review supplier statements
ReviewClients’ Credit Application Process (If applicable)
Purchase Orders / CheckOutstanding Purchase Orders

Ensure they are current
If old orders with balances, move to an invoice at current date
(Discuss with client)
Check PAID orders against Supplier Deposit Asset balance

Capital Acquisitions / Reviewvarious expense accounts that the client may have used for capital purchases and capital acquisition threshold used
Inventory
Stock Setup / Checkwhich stock system is used - Perpetual or Physical Stock System?
Stock Balances / CheckStock Value and Average/Fixed/FIFO on Stock Items
CheckStock Items Structure/Reporting
CheckReceipts of stock without a bill against relevant liability
Stock Maintenance / Checkoperation of maintaining stock levels and distribution
Checkfrequency of stock take
Payroll
Employees Setup / CheckEmployee Cards

ReviewEmployee Details, Start Date and Notes
ReviewStandard pay, Timesheets or status
ReviewEmployee rate of pay against Award/Contract
ReviewEmployees Tax scales and TFN Declaration Form
EnsureTax File Numbers are entered, addresses and termination dates (if applicable)

ReviewEmployees payment method and cycle
ReviewEmployees hard copy documents
Payroll Setup / CheckGeneral Payroll Information

Confirm the current payroll year, normal hours worked per week, Tax Table revision date, rounding cents and Superannuation Fund Default

CheckPayroll Categories

Display the Payroll Summary Report to determine what payroll categories the client uses. Check and review the setup of each. Pay special attention to post and pre-tax treatment.

CheckDeductions used and ensure correct tax treatment
CheckSalary Sacrifice if used and review liability accounts
CheckPayroll Tax threshold if not registered
Entitlements / Checkcalculating correctly:

Holiday leave entitlement should be linked to holiday pay
Personal leave entitlement should be linked to sick pay

Checksetup to ensure hours are correctly accrued in line with employee’s Award/Contract
Reviewlifetime balances report and note any leave balances that look unusual. For example: negative balances
Superannuation / CheckEmployer Super Default Fund
ReviewEmployee Super Choice Form
CheckSGC category (Superannuation Guarantee Expenses)

Ensure % rate is correct
ReviewPayroll Categories exempt from SGC
Reviewpay transactions to ensure super is calculatingcorrectly
Reviewwhether client pays superannuation monthly orquarterly

Checkif Salary Sacrifice Superannuation is used

Check setup of salary sacrifice and under Superannuation Tab
Ensure PAYG is exempt
Check SGC% calculation on Salary Sacrifice

CheckUnpaid Superannuation

Check business owner’s knowledge of unpaid superannuation
Check if a SGC Charge Statement has been or to be lodged

Reconciliations / Print Payroll Summary to date to:

CheckPayroll Gross Wages = Wages and Salaries Expense
CheckPAYG Withholding Liability ensuring IAS/BAS payment cleared liability
CheckSuperannuation Liability ensuring last payment cleared Liability

GST
BAS Setup / Checksetup for

GST Cash or Accrual and Frequency (Monthly/Quarterly/Annual)
PAYGI %
PAYGW (Monthly/Quarterly)
Fuel Tax
WET
Fringe Benefits

Review BAS Lodged / CheckBAS lodged for current year against

GST Summary
Payroll Summary
Profit and Loss Income against T1

CheckBAS payments have been entered correctly

GST payment to GST Collected and Paid
PAYGW to PAYG Withholding Liability
PAYGI to Provision for Income Tax
Fuel Tax/WET/FBT to relevant accounts
Reconcile GST and PAYGW Accounts

CheckRounding Account Used
Reporting/Forms
Standard Reports / CheckCustom/Standard Reports Setup

Reports required each Month
What format - emailed or printed

CheckCustom Forms used

______