Your Complete QuickBooks Health Check

Summary

We looked at every part of your QuickBooks file that could be assessed and found 78 things worth knowing about, across eight areas. Seventeen of them affect the accuracy of your reports right now and are worth fixing first. Most of the rest are small and quick to fix once you know they are there, and some are simply good to know.

Start here the five kinds of finding that affect your numbers most

If you only act on a few things, act on these. Together they cover 17 of the 78 findings, and each one changes what your balance sheet or profit and loss says today.

1. 1
   Three accounts have not been matched to the bank in over 90 days

   Checking, PayPal, and the payroll account. Until they are reconciled, every other number in this report is provisional.
2. 2
   Checking account shows a negative balance of −$8,029.82

   Your books say the account is overdrawn. Either it is, or deposits were recorded in a way that shrank the balance on paper.
3. 3
   Seven invoices totaling $14,210 are more than 60 days overdue

   The older these get, the less of the money you are likely to collect.
4. 4
   $3,850 in customer payments have not been applied to invoices

   Customers paid, but their invoices still show as open, so your receivables are overstated.
5. 5
   Three products show negative quantity on hand

   You cannot own fewer than zero of something. Sales were recorded before purchases, and both cost of goods and inventory value are wrong until they are fixed.

Chart of Accounts 14 findings · 12 worth fixing · 2 good to know

1. Worth fixingWhere4 accountsPosted this year$6,884.10

   Expenses posted to catch-all "uncategorized" accounts

   Transactions land in "Uncategorized Expense" when the bank feed could not guess a category and nobody chose one. They are real costs, but your profit and loss cannot say what they were for.

   Account	Detail	Amount
   Uncategorized Expense	31 transactions, mostly card purchases from bank feed	$4,912.60
   Uncategorized Income	4 deposits with no customer or category	$1,340.00
   Ask My Accountant	3 transactions parked since March	$481.50
   Uncategorized Asset	1 transfer from the bank feed	$150.00
   4 accounts · 39 transactions		$6,884.10

   What to do: categorize the 39 transactions. Most can be done in one sitting from the bank feed's "categorized" tab.

2. Worth fixingWhere4 pairs of accounts

   Accounts that duplicate each other

   Two accounts doing the same job split your history between them, so neither shows the true total. This usually starts when someone creates a new account instead of finding the existing one.

   Accounts	Detail
   Advertising · Advertising & Marketing	Both used this year; 60/40 split of the same kind of spend
   Repairs · Repairs and Maintenance	"Repairs" has 5 entries, all since June
   Supplies · Kitchen Supplies	Same vendors post to both
   Bank Fees · Bank Service Charges	Monthly fee alternates between them

   What to do: pick one of each pair and merge the other into it. QuickBooks moves the history automatically.

3. Worth fixingWhere3 accounts

   Sub-accounts filed under the wrong kind of parent

   A sub-account has to be the same kind as its parent. When it is not, it shows up in the wrong place on your reports, or QuickBooks quietly moves it.

   Account	Detail
   Catering Deposits	A liability account nested under Sales (income)
   Van Insurance	An expense nested under Vehicles (fixed asset)
   Gift Card Liability	Nested under Other Income

   What to do: move each account under a parent of the same kind, or make it a top-level account.

4. Worth fixingWherePayroll accounts

   Payroll expenses exist without matching payroll liability accounts

   You record wages and payroll taxes as expenses, but there is no account for the taxes withheld and not yet paid. Between pay day and the tax deposit, that money is owed and your balance sheet does not show it.

   What to do: add payroll liability accounts, or, if you use a payroll service, connect it so it posts them for you.

5. Good to knowWhere2 accountsTotal$412.75

   Inactive accounts that still carry a balance

   An account marked inactive disappears from lists but its balance stays on your reports. A leftover balance on an inactive account is usually a forgotten entry.

   Account	Detail	Balance
   Old Petty Cash	Made inactive in 2025, never zeroed	$212.75
   Farmers Market Float	Inactive since May	$200.00

   What to do: move each balance to the account that replaced it, then leave the old one inactive.

Balance Sheet Integrity 10 findings · 1 fix first · 5 worth fixing · 4 good to know

1. Fix firstWhereCheckingAmount−$8,029.82

   Checking account shows a negative balance

   Bank account "Checking" has a negative balance of −$8,029.82 in your books. Two common causes: the account is genuinely overdrawn, or deposits were posted directly to the bank account, bypassing Undeposited Funds, which net-reduced the balance incorrectly.

   What to do: compare the book balance to your bank statement for August 28. If the bank shows a positive balance, the deposits were recorded twice or in the wrong place and need to be re-entered through Undeposited Funds. Reconciling the account (see Bank Reconciliation) will surface exactly where.

2. Worth fixingWhereBoard of Equalization PayableAmount$370.94

   Sales tax account holds an unremitted balance

   "Board of Equalization Payable" carries a credit balance of $370.94. QuickBooks' automated sales tax is on, so this account should normally be cleared by each filing. A leftover balance usually means one filing was recorded outside the sales tax center.

   What to do: check whether the $370.94 was actually paid to the state. If it was, record that payment through the sales tax center so the account clears.

3. Worth fixingWhereEquipment Loan – HobartAmount$1,240.00

   A loan account shows money owed to you instead of by you

   "Equipment Loan – Hobart" has a debit balance of $1,240.00. A loan should always show what you still owe. A debit balance usually means payments were recorded against the loan after it was paid off, or the loan was never set up with its opening balance.

   What to do: compare the account to the lender's payoff statement and correct the opening balance or the extra payments.

4. Worth fixingWhereOwner's DrawAmount$42,300.00

   Owner draws are larger than owner investment this year

   Owner's Draw totals $42,300 against $18,000 in owner contributions and $19,600 in year-to-date profit. Draws above what the business earned reduce equity and can create a tax question at year end.

   What to do: nothing is wrong with the bookkeeping; this is worth a conversation with your tax preparer before year end.

5. Worth fixingWhereUndeposited FundsAmount$2,115.50

   Undeposited Funds has been holding money for over 30 days

   $2,115.50 in customer payments sits in Undeposited Funds, the oldest from July 9. Money here has been received but not yet recorded as deposited to the bank, so your cash balance is understated.

   What to do: match these payments to the bank deposits they were part of.

6. Worth fixingWhereAccumulated Depreciation – VehiclesAmount$1,900.00 over

   A vehicle is depreciated below zero

   Accumulated depreciation on "Delivery Van" is $1,900 more than the van's original cost. An asset cannot lose more value than it had. This usually means depreciation entries kept being posted after the asset was fully written down.

   What to do: stop the recurring depreciation entry for this asset and reverse the excess $1,900.

7. Good to knowWhere4 accountsTotal$641.37

   Clearing and pass-through accounts are not at zero

   Clearing accounts are temporary holding places that should return to zero after each settlement or transfer. A leftover balance usually means one settlement's fees or one side of a transfer was not recorded.

   Account	Detail	Balance
   Square Clearing	One July settlement's processing fee not recorded	$86.12
   DoorDash Clearing	Payouts recorded, three days of fees missing	$212.40
   Payroll Clearing	One direct-deposit batch recorded on one side only	$318.85
   Tips Clearing	Small rounding leftover, older than 90 days	$24.00
   4 accounts		$641.37

   What to do: for each account, find the missing fee or transfer leg and record it so the balance returns to zero. Low impact individually; together they blur your cash picture.

Profit and Loss 10 findings · 7 worth fixing · 3 good to know

1. Worth fixingWhere3 expense accountsTotal−$1,736.00

   Expense accounts showing a negative total

   An expense account that ends the period below zero means more money came back into it than went out. That is usually a refund or a vendor credit recorded against the expense, without the original cost being recorded there too.

   Account	Detail	Balance
   Equipment Rental	A $1,200 deposit refund with no matching charge	−$1,200.00
   Permits & Licenses	City refund larger than the fee recorded	−$336.00
   Postage	Returned-shipment credit, original never posted	−$200.00
   3 accounts		−$1,736.00

   What to do: find the original charge each refund relates to and record it in the same account.

2. Worth fixingWhere4 income accounts

   Income accounts that overlap

   Sales are being split across accounts that describe the same thing, so no single line on your profit and loss shows what a product line actually earns.

   Accounts	Detail
   Sales · Sales – Retail	Both used for counter sales, month by month
   Catering Income · Catering Sales	Same customers post to both
   Wholesale · Wholesale Revenue	"Wholesale" has 3 entries this year
   Other Income · Misc Income	Both hold small one-off deposits

   What to do: keep one account per product line and merge the rest into it.

3. Good to knowWhere3 parent accountsTotal$2,204.30

   Transactions posted to a parent account instead of one of its sub-accounts

   When a parent account like "Utilities" has sub-accounts for gas, electric, and water, posting directly to "Utilities" leaves an unexplained "other" line on your reports.

   Account	Detail	Amount
   Utilities	6 transactions posted to the parent	$1,180.30
   Cost of Goods Sold	2 transactions posted to the parent	$864.00
   Insurance	1 transaction posted to the parent	$160.00
   9 transactions		$2,204.30

   What to do: move each transaction to the right sub-account. Low impact on totals, high impact on readability.

Accounts Receivable 22 findings · 10 fix first · 10 worth fixing · 2 good to know

1. Fix firstWhere5 customers · 7 invoicesTotal$14,210.00

   Invoices more than 60 days overdue

   Invoices this old are usually either forgotten by the customer or disputed, and both get harder to resolve with time. They also sit in your receivables as if the money were coming, which flatters your balance sheet.

   Customer	Invoice	Due	Days late	Amount
   Pier Street Cafe	1187	Apr 8, 2026	142	$3,600.00
   Pier Street Cafe	1201	May 2, 2026	118	$1,850.00
   Marlowe Events	1194	Apr 30, 2026	120	$4,400.00
   Two Oaks Deli	1210	May 20, 2026	100	$960.00
   Two Oaks Deli	1222	Jun 12, 2026	77	$1,120.00
   Beacon Coworking	1218	Jun 5, 2026	84	$1,180.00
   Northgate Catering	1225	Jun 20, 2026	69	$1,100.00
   7 invoices				$14,210.00

   What to do: contact each customer this week. Any invoice you know will not be paid should be written off so it stops inflating your receivables.

2. Fix firstWhere3 customers · 3 paymentsTotal$3,850.00

   Customer payments received but not applied to invoices

   These payments are recorded but not matched to the invoices they paid. Those invoices still show as open, so your receivables and your customers' balances are both overstated, and the customers may get reminders for money they already sent.

   Customer	Payment date	Likely invoice	Amount
   Marlowe Events	Jul 14, 2026	1194 (partial)	$2,200.00
   Two Oaks Deli	Jul 29, 2026	1210	$960.00
   Beacon Coworking	Aug 3, 2026	1218 (partial)	$690.00
   3 payments			$3,850.00

   What to do: open each customer and apply the payment to the invoice it belongs to. Two of these would also shrink the overdue list above.

3. Worth fixingWhere6 customers · 7 invoicesTotal$8,720.00

   Invoices between 1 and 60 days overdue

   These are within a normal collection window but worth a reminder before they age into the group above.

   Customer	Invoice	Due	Days late	Amount
   Marlowe Events	1231	Jul 3, 2026	56	$2,900.00
   Lantern Books	1236	Jul 15, 2026	44	$640.00
   Ridge Fitness	1238	Jul 18, 2026	41	$1,250.00
   Beacon Coworking	1240	Jul 25, 2026	34	$1,180.00
   Harborview Dental	1243	Aug 1, 2026	27	$780.00
   Two Oaks Deli	1247	Aug 8, 2026	20	$1,120.00
   Marlowe Events	1251	Aug 22, 2026	6	$850.00
   7 invoices				$8,720.00

   What to do: send statements. Consider turning on QuickBooks' automatic reminders so this list stays short without your attention.

4. Worth fixingWhereBeacon CoworkingAmount$420.00

   A credit memo is sitting unused while the same customer has an open invoice

   Beacon Coworking has a $420.00 credit memo from June and open invoices totaling $2,360.00. The credit was never applied, so the customer is being asked for more than they owe.

   What to do: apply the credit memo to the oldest open invoice.

5. Worth fixingWhereNorthgate CateringAmount$1,100.00

   An invoice is open for a customer marked inactive

   "Northgate Catering" is inactive but still has invoice 1225 open. Inactive customers are hidden from most lists, so this invoice is easy to lose track of.

   What to do: reactivate the customer until the invoice is settled, or write it off if the relationship ended.

6. Worth fixingWhereMarlowe EventsShare41% of receivables

   One customer is 41% of everything owed to you

   Marlowe Events owes $10,350 of the $25,290 outstanding. That is not a bookkeeping error, but if that one customer pays late, your cash flow feels it immediately.

   What to do: consider deposits or shorter terms for this account.

7. Good to knowWherePier Street Cafe

   Two customer records appear to be the same business

   "Pier Street Cafe" and "Pier St. Cafe" both have activity this year. Split records make statements confusing for the customer and hide how much they actually owe you.

   What to do: merge the two records in QuickBooks. Their history combines automatically.

8. Good to knowWhereRefund receiptsRate4.2%

   Refund rate is on the high side

   You refunded 4.2% of invoiced sales this year, against a typical 1 to 2% for food service. Not an error, but worth understanding: is it damaged orders, cancellations, or pricing disputes?

   What to do: nothing in the books. Worth a look at the reasons.

Accounts Payable 8 findings · 7 worth fixing · 1 good to know

1. Worth fixingWhere3 vendors · 4 billsTotal$2,960.00

   Bills past their due date

   Late bills can cost you early-pay discounts and, with some suppliers, credit terms. Often a bill on this list was paid outside QuickBooks and simply never marked paid.

   Vendor	Bill	Due	Days late	Amount
   Coastal Flour Supply	CF-4471	Jul 21, 2026	38	$1,420.00
   Coastal Flour Supply	CF-4502	Aug 11, 2026	17	$610.00
   Bayside Packaging	8821	Aug 4, 2026	24	$540.00
   City Gas & Electric	Aug statement	Aug 18, 2026	10	$390.00
   4 bills				$2,960.00

   What to do: confirm whether each was paid outside QuickBooks. If it was, record the payment; if not, schedule it.

2. Worth fixingWhere2 vendorsPaid this year$4,150.00

   Vendors you paid more than $600 with no tax ID on file

   These vendors are set up as 1099 contractors but have no taxpayer ID. You will need it to file 1099 forms in January, and vendors are slower to answer in January.

   Vendor	Detail	Paid this year
   J. Alvarez Repairs	Marked 1099-eligible, no tax ID	$2,300.00
   Lakeside Design Co.	Marked 1099-eligible, no tax ID	$1,850.00

   What to do: request a W-9 from each vendor now.

3. Worth fixingWhereCoastal Flour SupplyAmount$210.00

   A vendor credit has not been applied

   Coastal Flour Supply issued a $210.00 credit in May that is still open while you have two bills from them outstanding. You are set to pay more than you owe.

   What to do: apply the credit against the oldest open bill before paying it.

4. Good to knowWhereSysco, SYSCO Foods

   Two vendor records look like the same supplier

   "Sysco" and "SYSCO Foods" both have activity this year. Spending reports by vendor will split this supplier in two.

   What to do: merge the records.

Items and Inventory 7 findings · 3 fix first · 4 worth fixing

1. Fix firstWhere3 products

   Products with negative quantity on hand

   You cannot own fewer than zero of something. A negative quantity means sales were recorded before the purchases that supplied them. Until the purchases are entered, cost of goods sold is understated and your inventory value is wrong.

   Product	Detail	On hand
   Sourdough Loaf (wholesale)	Sold 340 in August, no purchase or build recorded	−118
   Coffee Beans 12oz	Last purchase entered June 30	−42
   Gift Box – Large	Sold before the assembly was recorded	−7

   What to do: enter the missing purchases or builds for each product, dated before the sales that used them.

2. Worth fixingWhere2 products

   Products with a zero sales price

   A product with no price sells for $0 unless someone remembers to type the price on every invoice. Two products on your list have been sold at $0 this year.

   Product	Detail
   Custom Cake Deposit	Sold at $0 on 4 invoices since May
   Delivery Fee	No default price; typed manually on 9 of 11 invoices

   What to do: set a default price on each product. Check the four $0 cake-deposit invoices for money you did not bill.

3. Worth fixingWhere2 pairs of products

   Products that duplicate each other

   Two product records for the same item split your sales history and, for inventory items, your quantity on hand.

   Products	Detail
   Croissant · Croissant (each)	Both sold this year; quantities split between them
   Catering – Lunch · Lunch Catering	Service items, same price

   What to do: merge each pair. For the inventory item, merge before the next count so the quantity is right.

Bookkeeping Quality 2 findings · 2 worth fixing

1. Worth fixingWhereJournal entries 41, 47, 58Amount$2,780.00

   Journal entries post directly to receivables

   Three entries dated March through June move $2,780.00 in and out of Accounts Receivable without a customer attached. Receivables should only change through invoices, payments, and credit memos, otherwise customer balances and the account total drift apart.

   What to do: find out what each entry was meant to record and redo it as the proper invoice, payment, or credit.

2. Worth fixingWhere5 journal entriesAmount$6,420.00

   Journal entries with no description

   Entries without a memo cannot be explained later, to you, a lender, or an auditor. Together they move $6,420.00.

   What to do: add a short memo to each while the reason is still fresh.

Bank Reconciliation 5 findings · 3 fix first · 2 worth fixing

1. Fix firstWhere3 accountsUnmatched331 transactions

   Accounts not reconciled in more than 90 days

   Months of transactions have not been checked against the bank. This is the most likely reason Checking shows a negative balance, and until it is done, every cash figure in this report is provisional.

   Account	Last reconciled	Days	Unmatched
   Checking	Apr 30, 2026	120	214
   PayPal	Mar 31, 2026	150	89
   Payroll Account	May 15, 2026	105	28
   3 accounts			331

   What to do: reconcile each account one statement at a time, oldest first, starting with Checking. Expect the negative balance to resolve or explain itself along the way.

2. Worth fixingWhere2 accounts

   Accounts between 45 and 90 days behind on reconciliation

   Not yet a problem, but each unreconciled month makes the next one harder.

   Account	Last reconciled	Days
   Chase Ink (credit card)	Jun 15, 2026	74
   Savings	Jun 30, 2026	59

   What to do: reconcile the outstanding statements for each.

Areas that looked good

We checked this area as thoroughly as the ones above and found nothing that needs your attention.

Talk it through

Seventy-eight findings sounds like a lot. In practice most are a few minutes each once someone is in the file, and the five under "Start here" are where a working session should begin. If you would like help with any of it, or want a second opinion on a finding, that conversation is the next step.

How to read this report

Findings are grouped by kind. Where a kind was found more than once, every instance is listed inside its block and the count in the heading is the number of instances. Amounts are as recorded in your QuickBooks file on the date of the check. Scores are on a 0 to 100 scale where 100 means nothing was found in that area.