Bookkeeping Diagnostic & Data Integrity Review
Quick Answer
A bookkeeping diagnostic is a structured review of your financial data to identify errors, inconsistencies, and tax risks before ongoing bookkeeping begins. It prevents surprises and sets a reliable foundation.
Why a Diagnostic Is Required
Most bookkeeping problems are not obvious at first glance. Financial reports may look reasonable while hiding structural issues underneath.
Quoting monthly bookkeeping without first reviewing data integrity exposes both the business owner and the accounting firm to unnecessary risk.
That is why Polaris requires a bookkeeping diagnostic before onboarding any ongoing bookkeeping engagement.
This is not an upsell. It is a safeguard.
What Goes Wrong Without a Diagnostic
When bookkeeping begins without a diagnostic, firms inherit problems they did not create and clients assume those problems are being handled.
Common issues discovered later include:
- Bank and credit card accounts that do not reconcile
- Transactions categorized inconsistently over time
- Payroll not aligned with books
- Sales tax or payroll liabilities misstated
- Books that do not match filed tax returns
These problems rarely surface immediately. They appear months later, often during tax filing, audits, financing, or ownership changes.
A diagnostic prevents this delay.
What We Review in the Diagnostic
The bookkeeping diagnostic focuses on data integrity, not surface-level cleanup.
Our review typically includes:
- Bank and credit card reconciliations
- Chart of accounts structure
- Transaction categorization logic
- Payroll integration and liability accuracy
- Sales tax and withholding consistency
- Alignment between books and prior tax filings
- Documentation of prior accounting decisions
This review identifies whether your books can support reliable reporting and tax work.
What You Receive
At the conclusion of the diagnostic, you receive clear findings, not vague commentary.
Deliverables typically include:
- A summary of identified issues
- Risk areas that could create tax or compliance problems
- Data integrity gaps affecting decision-making
- Recommendations required before monthly bookkeeping
This gives you clarity before committing to ongoing services.
Who This Process Filters Out
The diagnostic is intentionally designed to filter out misaligned engagements.
This process is not a fit for businesses that:
- Want bookkeeping only once per year
- Expect cleanup without ongoing maintenance
- Prioritize price over accuracy
- Are unwilling to correct structural issues
- View bookkeeping as a commodity
This protects both the client and the firm from future frustration.
How the Diagnostic Transitions to Monthly Bookkeeping
If the diagnostic confirms that your data can support ongoing bookkeeping, we outline the path forward.
This may include:
- Initial cleanup requirements
- Standardization of the chart of accounts
- Establishment of monthly reconciliation processes
- Ongoing maintenance under a defined bookkeeping tier
Monthly bookkeeping begins only after the foundation is stable.
Why This Matters Before Tax or Advisory Work
Tax planning, projections, and advisory services depend entirely on data quality.
Without reliable books:
- Tax projections are inaccurate
- Planning recommendations are speculative
- Advisory decisions carry unnecessary risk
The diagnostic ensures that higher-level services are built on solid ground.
Next Steps
If you are considering ongoing bookkeeping, the diagnostic is the first step.
It provides clarity, prevents surprises, and ensures that any future work is based on reliable financial data.