You do not need to be an accountant to know whether your books are right. Ten checks, most of them in Xero and ATO Online Services, will tell you in about half an hour. If several fail, the cost is more than messy reports. A BAS lodged late can attract a failure to lodge penalty for each 28 days it is overdue, up to five blocks, according to the ATO: $364 a block for a small entity, or $728 for a medium entity. If the checks raise doubts, a registered BAS agent service can review the file.
Published: October 2026
Three things: accurate records, compliance on time and reports you can use. Accurate means every bank account reconciles to its statement. On time means BAS, payroll and super never slip. Usable means you get the numbers each month, early enough to act on them.
The checks below test all three.
Open Xero's balance sheet as at the last day of last month. Compare each bank and credit card balance with the actual statement for the same date. They should match to the cent. "Reconciled" on screen is not enough if the statement balance is different.
In each bank account in Xero, check how many items are waiting to be reconciled and how old the oldest one is. A handful from the last week is normal. Hundreds, or items months old, are not.
Look for accounts named suspense, clearing, uncategorised or "ask my accountant" on the balance sheet or profit and loss. Small, short-lived balances can be fine. Large or growing balances mean transactions are being parked, not coded.
Run the aged receivables report. Do you recognise the customers and amounts? Look for invoices you know were paid, very old balances and credit balances. Each points to receipts that were never matched.
Run the aged payables report. Look for the same supplier and amount twice, very old bills, and bills you know were paid. Duplicates in payables lead to duplicate payments.
Log in to ATO Online Services, or ask your bookkeeper for a screenshot, and check the lodgment history for each BAS. Compare the dates with our BAS due dates for 2026-27. The ATO's penalty unit table shows a unit is $364 for infringements on or after 1 July 2026. For a small entity, that means up to $1,820 per late statement. The ATO doubles the penalty for a medium entity, one that withholds more than $25,000 a year in PAYG or has GST turnover or assessable income of $1 million to $20 million. That is $728 per 28 days, up to $3,640 per statement, and it is the band most businesses with around 20 staff fall into. Our guide to failure to lodge penalties explains how the 28-day blocks work.
Compare your ATO integrated client account balance in Online Services with the matching liability accounts in Xero, usually GST, PAYG withholding and any ATO clearing account. They should agree, allowing for timing. A gap means something was missed or posted wrongly.
Since 1 July 2026, super must reach each employee's fund within 7 business days of payday, according to the ATO. Check your super payment records against your pay run dates for the last two months. Late super attracts the super guarantee charge, which is far more expensive than the super itself.
Do you get a profit and loss, balance sheet and cash summary within a set number of days after month end? Can you explain the big numbers? If reports arrive late or you cannot read them, ask why. Our guide on how to read Xero profit and loss reports helps you ask the right questions.
Check who can load payments in your bank and who approves them. They should be different people. Ask how supplier bank detail changes are verified. The answer should include a phone call to a known number.
For a wider look at your compliance position, try our free ATO compliance health check.
Start with a conversation, not an accusation. Some problems come from missing receipts or late approvals on your side. Agree what will be fixed, by when, and how you will see it.
If problems keep coming back, it may be time to change providers. Our rescue plan for a messy Xero file covers the clean-up, and our article on why cheap bookkeeping is quietly costing Australian SMEs explains the hidden costs. Scale Suite's outsourced finance team starts from $1,500 per month, with no lock-in.
How do I know if my bookkeeper is doing a good job?
Check that bank balances in Xero match your statements, there are no old unreconciled items, BAS was lodged on time, super was paid on time and monthly reports arrive when promised.
What should my bookkeeper give me each month?
At minimum, a profit and loss, a balance sheet, aged receivables and payables, and a summary of anything that needs your attention.
How much is the penalty for a late BAS?
For a small entity, the ATO can charge one penalty unit for each 28 days or part of 28 days a BAS is overdue, up to five units. A penalty unit is $364 for infringements on or after 1 July 2026, so the maximum is $1,820 per statement. For a medium entity, with PAYG withholding over $25,000 a year or GST turnover or assessable income of $1 million to $20 million, the penalty doubles to $728 per 28 days, up to $3,640.
What is a suspense account in Xero?
It is a holding account for transactions the bookkeeper has not yet coded. It should be cleared regularly. A large balance means work is unfinished.
How do I check if my BAS was lodged?
Log in to ATO Online Services for business and view the lodgment history, or ask your bookkeeper or BAS agent for a copy of the lodgment receipt.
How often should my bank accounts be reconciled?
At least monthly, and weekly for most active businesses. Weekly reconciliation keeps reports current and catches errors early.
Should I get my books reviewed by someone else?
If several checks fail, or if BAS, ATO balances or super are wrong, an independent review is worth doing before the next lodgement.
Book a 30-minute call at calendly.com/scalesuite/30min. Tell us which checks failed and we will tell you what it takes to fix them.
Scale Suite is a Sydney-based provider of outsourced finance teams and fractional CFO services for Australian SMEs. We deliver weekly bookkeeping, payroll, BAS/IAS lodgement, cashflow reporting, management accounts, and strategic fractional CFO oversight, all as a fully embedded team that works inside your business.
CA-qualified, Xero Certified, and registered BAS Agents, we replace fragmented bookkeepers and once-a-year accountants with one responsive finance function at a fraction of the cost of full-time hires. We serve growing businesses across Sydney, Melbourne, Brisbane, Perth, and Adelaide, with packages starting from $1,500 per month and no lock-in contracts.
Visit Scale Suite | View Our Finance Services | View Our HR Services | Get Your Free Proposal
We review and check this guide periodically. At the time of writing (October 2026), all information was current. Scale Suite is a registered BAS Agent, not a licensed tax advisor or financial advisor. This content is general information only and does not constitute professional tax, financial, or legal advice. Some details may change over time.
All figures as at October 2026.
Scale Suite is a Sydney-based provider of outsourced finance and HR services for Australian SMEs. We deliver bookkeeping, financial reporting, payroll processing, fractional CFO support, recruitment, employee onboarding, people and culture support, and fractional HR oversight, all as a fully embedded team that works inside your business.
Employment Hero Gold Partner, CA-qualified, and Xero Certified, we replace fragmented finance and HR processes with one responsive, senior-level function at a fraction of the cost of full-time hires. We serve growing businesses across Sydney, Melbourne, Brisbane, Adelaide, and Perth, with packages starting from $1,500 per month and no lock-in contracts.
30 minutes with our team.
We will review your current finance setup, compare the full cost of an internal hire against our embedded team, and show you exactly what your finance function should cost at your stage of growth.
You will leave with a clear view of what is working, what is missing and where you would save.
No lock-in contracts. 30-day money-back guarantee.
Prefer to book directly? Grab a time here.
