The 10-Point Review
- Cash reconciles to every bank and card statement at month end.
- Revenue is recognised when earned, with annual prepayments in deferred revenue.
- Accruals are booked for bills received after month end.
- Prepaid expenses are spread across the months they cover.
- Payroll matches the payroll provider, including taxes and benefits.
- Uncategorised or suspense balances are close to zero.
- The balance sheet moves logically from last month.
- Gross margin is consistent unless something real changed.
- Prior months have not changed without explanation.
- A qualified person reviewed and signed off the close.
What to Do If Checks Fail
Fix the history before you use it to plan. A controller review or catch-up clean-up is usually faster than founders expect, and it is far cheaper than finding problems in investor due diligence.
Want to see how this works in practice? Explore our fractional CFO services, see the industries we support, and read how an engagement with Finative works, from first call to monthly reporting.
Frequently Asked Questions
Are AI accounting tools accurate?
They are often accurate on routine categorisation and less reliable on judgement areas such as revenue recognition, accruals and unusual transactions. Accuracy needs to be checked, not assumed.
What is the quickest test of AI-generated books?
Compare the ending cash balance for each account to the bank statement for the same date. If they do not match, nothing downstream can be trusted yet.