Which 7 financial health check steps should Sydney SMEs run?

A short, focused financial health check helps you spot urgent risks, prioritise fixes, and decide whether to escalate to an accountant or a concierge CFO. This checklist is built for Sydney and Western Sydney small and medium enterprises and targets the practical areas that most commonly cause cash stress or ATO attention: cash flow, BAS, payroll and STP, bookkeeping quality, tax provisions, software and data security, and management reporting. Use each numbered check as a 10–30 minute diagnostic with clear 24-72 hour actions and a simple trigger that tells you when to call for professional help.

1. Cash flow and short-term forecast

Diagnostic questions

What is your current bank balance and projected end-of-month cash after payroll and tax?
How many days of sales are tied up in accounts receivable, and what is your 30/60/90 day AR profile?
Do you have committed payroll, landlord or loan payments in the next 30 days?

Run a simple 30-day cash forecast using current bank balances, known receipts and committed payments. Short-run forecasts are often enough to avoid emergency borrowing and preserve supplier relationships; use a one-page layout so the numbers are actionable.

Quick fixes you can do in 24-72 hours

Send statements and polite payment reminders for invoices older than 30 days.
Move non-urgent purchases and project starts beyond the immediate month.
Confirm payroll dates and set aside PAYG withholding and super amounts in a dedicated account.

When to call an accountant or CFO

Contact an advisor if you have under 30 days of runway after basic fixes, if payroll or suppliers are repeatedly paid late, or if your short-run forecast still shows a cash deficit and you need a lender introduction, restructuring plan or cash recovery strategy. Advanced Accounting Taxation & Business Services can run a rapid cash review and suggest funding or cost options on short notice; see our website for next steps.

2. BAS, GST and outstanding ATO lodgements

Diagnostic questions

When did you last lodge your BAS and did the GST figures reconcile to your sales records?
Are any ATO notices or default assessments on file?
Do you have unclaimed GST credits or timing mismatches between tax and accounting records?

BAS lodgement and GST reconciliation are regulated obligations. If you are unsure about due dates, penalties or payment plans, check official ATO guidance or contact a tax professional early to avoid escalation.

Quick fixes

If BAS is overdue, prepare accurate returns for the last two periods and reconcile GST accounts to sales and purchase records.
If you cannot pay a GST bill, contact the ATO immediately to discuss instalments rather than waiting for enforcement action.

When to call an accountant or CFO

Engage professional help if you have received penalty notices, if your GST totals materially differ from sales records, or if you need to prepare a voluntary disclosure and negotiate a payment plan. An accountant can also implement a regular BAS process to avoid recurrence and improve month-to-month controls.

3. Payroll, Single Touch Payroll (STP) and superannuation compliance

Diagnostic questions

Are your STP reports up to date for every payrun and reconciled to payslips?
Have you made timely super guarantee payments for every eligible pay period?
Are PAYG withholding totals matching the payroll reports you will lodge at year end?

STP and super guarantee obligations are common sources of ATO enquiries and employee disputes. Confirm that each payrun was reported correctly and that employer super payments were scheduled on time.

Quick fixes

Correct or file any missing STP submissions for recent pay periods.
Reprocess incorrect payslips, notify affected employees, and make any overdue super payments immediately.

When to call an accountant or CFO

Get professional help when STP errors cover multiple pay periods, if the ATO has contacted you about PAYG or super, or when payroll complexity grows beyond internal capacity. A specialist can remediate prior errors, communicate with the ATO on your behalf, and set stronger payroll controls.

4. Bookkeeping, reconciliations and transaction quality

Diagnostic questions

Are bank feeds connected and reconciled at least monthly?
Are expense categories consistent with your BAS and tax reporting needs?
Do supplier invoices and receipts match recorded expenses and GST treatment?

Accurate bookkeeping underpins reliable reports and correct tax lodgements. If your ledgers include many uncoded or uncleared transactions, management reports and tax positions will be misleading.

Quick fixes

Reconcile bank accounts for the last two months to clear unallocated transactions.
Create a short cleanup list for expense categories and lock down manual journals pending review.

When to call an accountant or CFO

Hire professional bookkeeping or accounting support if reconciliations fail, if there are unexplained variances to previously filed returns, or if bookkeeping is consuming billable management time. Outsourcing bookkeeping can save time and reduce reporting errors.

5. Tax position, PAYG instalments and year-end provisions

Diagnostic questions

Has your taxable profit changed materially since you estimated instalments?
Are PAYG instalment amounts aligned with current projections and cash capacity?
Are there one-off timing items that will distort your year-end taxable income?

Estimate provisional tax now and compare projected tax with amounts already paid as PAYG instalments. If projections show a material shortfall, you may be able to vary instalments or plan cash to meet the year-end liability.

Quick fixes

Prepare a simple tax projection and adjust PAYG instalment calculations if the ATO rules allow.
Document one-off gains or timing adjustments so your accountant can apply appropriate timing strategies.

When to call an accountant or CFO

Call for advice if taxable profit is likely to be materially different from prior estimates, if you need tax-effective timing moves, or if you face penalties for underpaid instalments. An adviser can model outcomes and lodge any necessary variations with the ATO.

6. Accounting software, bank feeds and access controls

Diagnostic questions

Is your cloud file syncing bank feeds correctly, and are backups in place?
Do former staff or ex-contractors still have active logins?
Are your Xero, MYOB or QuickBooks setups aligned with your chart of accounts and reporting needs?

Cloud accounting reduces administration when configured correctly. Advanced Accounting Taxation & Business Services partners with Xero, MYOB and QuickBooks to streamline client setups and secure access management.

Quick fixes

Reconnect broken bank feeds, remove unused user accounts, and export a current ledger copy for safe offline storage.
Standardise user roles and enforce two-factor authentication for all admin users.

When to call an accountant or CFO

Bring in an advisor when migrations, multi-entity consolidation, or a security incident prevent timely reporting. A professional can also optimise your cloud configuration so management reports are automatic and reduce manual reconciliations.

7. Financial reporting, KPIs and contingency planning (including SMSF checks where relevant)

Diagnostic questions

Do you have timely management P&L and cash reports each month or week?
Are your chosen KPIs giving an early warning on margins, debtor days and payroll cost ratios?
If you or directors use a self-managed super fund, is the SMSF up to date with compliance checks?

Build a one-page dashboard showing cash, debtor days, gross margin and payroll cost ratio to review weekly. If your business or directors operate an SMSF, use a targeted SMSF compliance checklist to confirm lodgements and documentation before year end; Advanced Accounting publishes a practical SMSF compliance checklist you can run through.

Quick fixes

Create a one-page dashboard and review it weekly for early warning signs.
Schedule a quarterly review meeting with a trusted advisor to interpret KPI trends and agree corrective actions.

When to call an accountant or CFO

Request a formal financial health check if KPIs consistently trend negative, if you need an SMSF compliance audit, or when you want a concierge CFO to implement cash and growth plans. A structured review will convert dashboard warnings into a practical recovery plan.

Frequently asked questions

How long does a self-run financial health check take for a small business?

You can complete the seven-point self-check in 30-90 minutes depending on how tidy your records are. Each individual diagnostic can be done in 10-30 minutes and the quick fixes are sized to fit a 24-72 hour action window.

If I find an overdue BAS or STP error, how quickly should I act and what will the ATO expect?

Act immediately. The ATO prefers voluntary corrections and early contact, and it is better to prepare accurate returns and request payment plans than to wait for enforcement. If you need help, an accountant can prepare correct lodgements and negotiate terms on your behalf.

When should I hire a bookkeeper versus an accountant or concierge CFO?

Hire a bookkeeper when routine data entry, bank reconciliations and day-to-day transaction quality are the bottleneck. Engage an accountant for tax lodgements, BAS reconciliation, PAYG and ATO negotiation. Use a concierge CFO when you need hands-on strategic cash, funding or restructuring support beyond regular compliance.

What does Advanced Accounting’s free initial financial health consultation include and how do I book it?

The free consultation is a short intake call to confirm priority issues and scope a focused health check. Book online via our website or visit our Liverpool office on Google Maps to arrange a time. The consultation is the first step in our three-step onboarding: Consultation, Choose a Package, Get Your Service.

Ready for hands-on help? Contact Advanced Accounting Taxation & Business Services to request a free initial financial health consultation and a practical, local plan tailored to your business.