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PHASE 1 OF THE ANCHORPOINT METHOD

Financial System Diagnostic Review

When financial reports stop reflecting what’s actually happening in the business, the issue is rarely just missing transactions. Before any cleanup begins, you need to know what is actually broken — and how deep it goes.

Diagnostic Report.png

Sample Diagnostic Findings Report

Every engagement begins here

Written findings report

No assumptions, no shortcuts

Birmingham, AL & nationwide

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Structured Assessment

Written Findings Report

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Remediation Roadmap

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Intuit Certified ProAdvisor

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Birmingham, AL - Serving Nationwide

— Why Diagnosis Comes First

Cleanup Work Applied to the Wrong Problem Doesn’t Fix Anything

This is where most projects go wrong.

Cleanup work is often treated as a volume problem: “How far behind are the books?” But in many cases, the issue isn’t volume - it’s structure.

“Without diagnosing the system first, you can’t know whether you’re solving the right problem.”

Without an accurate diagnostic, cleanup work risks being mis-scoped from the start. The result is work that addresses visible symptoms while structural issues remain intact — and the same problems return.

The real question before any work begins: what is actually broken - and how deep does it go?

WITHOUT A DIAGNOSTIC

Cleanup Can Be Mis-Scoped

Catch-up issues involve work not done on time. Structural issues are different — the balance sheet no longer ties to real obligations, and the system has drifted out of alignment with the business.

Without understanding how transactions flow through the system, work is estimated based on visible symptoms — not actual condition. Scope errors mean the work isn’t priced correctly and may not address root causes.

WITHOUT A DIAGNOSTIC

Root Issues Go Unresolved

Balance sheet accounts can look wrong for many reasons. Without identifying the actual source, corrections address the symptom — not the cause. Six months later, the same balances are off again.

THE RIGHT APPROACH

Diagnosis Before Remediation

Every AnchorPoint engagement begins here. The diagnostic determines what is broken, why it happened, and what the correct remediation sequence actually is — so the work that follows is targeted and complete.

— What the Diagnostic Covers

What the Diagnostic Actually Examines

The review systematically assesses each area of the accounting system where problems typically originate or compound.

Which accounts are reconciled and current, which are behind, and where reconciliation gaps are creating downstream distortions in the financial statements.

Reconciliation Status

Structural Repair, Not Just Transaction Entry

Cleanup work often goes beyond missing transactions. It requires restoring balance sheet integrity, correcting liabilities, and repairing accounting workflows that have broken down over time.

Whether clearing accounts are resolving as intended or accumulating balances - a common indicator of process breakdown and a frequent source of balance sheet distortion.

Clearing & Suspense Accounts

Structural Repair, Not Just Transaction Entry

Cleanup work often goes beyond missing transactions. It requires restoring balance sheet integrity, correcting liabilities, and repairing accounting workflows that have broken down over time.

Whether balance sheet accounts tie to actual business obligations, or whether balances have accumulated that no longer reflect real assets, liabilities, or equity.

Balance Sheet Integrity

Structural Repair, Not Just Transaction Entry

Cleanup work often goes beyond missing transactions. It requires restoring balance sheet integrity, correcting liabilities, and repairing accounting workflows that have broken down over time.

Whether the chart of accounts is organized to produce reliable, readable financial reports — or whether structural issues in the account setup are distorting the picture.

Chart of Accounts Structure

Structural Repair, Not Just Transaction Entry

Cleanup work often goes beyond missing transactions. It requires restoring balance sheet integrity, correcting liabilities, and repairing accounting workflows that have broken down over time.

Whether payroll liability accounts match actual filings, and whether sales tax balances accurately reflect what is owed — two of the most commonly mishandled areas in QuickBooks.

Payroll & Sales Tax Liabilities

Structural Repair, Not Just Transaction Entry

Cleanup work often goes beyond missing transactions. It requires restoring balance sheet integrity, correcting liabilities, and repairing accounting workflows that have broken down over time.

Whether the income statement and balance sheet are currently producing numbers that leadership can rely on for business decisions — or whether the reports have drifted from operational reality.

Financial Reporting Reliability

The AnchorPoint Process

— The Diagnostic Process

How the Diagnostic Review Works

Three structured phases that move from initial conversation to written findings to a clear path forward.

— INITIAL CONVERSATION

I

Diagnostic Conversation

We begin with a conversation about the current state of the books, the history of the account, and what symptoms have been observed. This frames the scope of the assessment before we begin.

II

— SYSTEM ASSESSMENT

Structured System Review

A methodical review of reconciliation status, balance sheet accounts, liability balances, clearing accounts, chart of accounts structure, and financial reporting reliability.

III

— WRITTEN DELIVERABLE

Written Findings Report

You receive a written summary of what was found, how the condition is classified, what remediation is recommended, and what the engagement scope would be if you proceed.

— WHAT YOU RECEIVE

What You Have at the End of the Diagnostic

At the conclusion of the review, you have a clear and documented understanding of the system’s actual condition — not an estimate, not assumptions.

A summary of findings across all reviewed areas​

Classification of the accounting condition — structural vs. catch-up

Identification of root causes, not just symptoms​

A recommended remediation approach and sequence​

An estimated scope of cleanup work, if required

A baseline view of system health for ongoing monitoring

This Diagnostic Process Ensures

Remediation work is targeted, structured, and appropriate for the actual condition of the accounting system — not scoped on assumption or visual inspection alone.

In addition to the findings summary and remediation roadmap, each diagnostic establishes a baseline view of system health - providing a clear starting point for both cleanup and ongoing monitoring.

  • Master of Taxation

  • B.S. in Management (Accounting)

  • Intuit Certified Bookkeeper

  • QuickBooks ProAdvisor

Next step

If your financial reports have become difficult to trust or reconciliations have fallen behind, a Structured Diagnostic Review is the appropriate starting point. Contact AnchorPoint to begin the diagnostic process.

  • Financial reports no longer match what you’re seeing in the business

  • A clear understanding of what is broken and why it happened

  • A clear understanding of what is broken and why it happened

  • You’ve had cleanup work done before — and the same problems came back

  • Payroll or sales tax liabilities don’t tie to actual filings

— When a Diagnostic Is the Right Starting Point

Signs a Diagnostic Review Is What You Need

  • Reconciliations are behind and you’re not sure how far back the issues go

  • Balance sheet accounts have balances that don’t correspond to real obligations

  • Cleanup work feels uncertain — you’re not sure what’s actually broken

— Phase 1 — Diagnose

Structured Diagnostic Review

Assess the actual condition of the system. Identify what is broken and why. Establish a clear remediation roadmap.

Reconcile the balance sheet. Correct liability accounts. Restore the integrity of the financial system.

From Diagnostic to Ongoing Stability

The goal of the diagnostic is not just to identify issues - it’s to establish a clear path forward. For most clients, that path follows three structured phases.

— The AnchorPoint Method

— Phase 1 — Diagnose

Structured Diagnostic Review

Assess the actual condition of the system. Identify what is broken and why. Establish a clear remediation roadmap.

— Phase 1 — Diagnose

Structured Diagnostic Review

Assess the actual condition of the system. Identify what is broken and why. Establish a clear remediation roadmap.

— Phase 1 — Diagnose

Reconcile the balance sheet. Correct liability accounts. Restore the integrity of the financial system.

— Phase 3 — Maintain

System Stability & Ongoing Integrity

— Phase 1 — Diagnose

Structured monthly close. All key accounts reconciled consistently. Reliable financials every period.

— Phase 1 — Diagnose

Cleanup & System Repair

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Begin With a Diagnostic Review

If your accounting system has drifted from operational reality, a Structured Diagnostic Review is the correct first step. No sales pressure — just a diagnostic conversation.

Start with a Diagnostic. Fix the right problem.

Birmingham, Alabama · Serving businesses nationwide

Or call: (205) 719-6480

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