A Xero Health Check is a simple but powerful way to bring clarity, confidence and control back to your business finances.

In a fast-moving business world, it’s easy for accounting systems to be set up once and then left untouched. Over time, small inconsistencies can creep in, settings can become outdated, and you may not be getting the full benefit from Xero’s features. A Xero Health Check gives you peace of mind by ensuring your system is working with you — not against you.

Following a short 15-minute kick-off call, our experienced team will carry out a thorough review of your Xero account. We break this down into three key areas: Settings, Data Consistency and Accounting — the essential building blocks of reliable financial data.

Settings: Laying the Right Foundations

We begin by reviewing how your Xero account is set up, focusing on security, efficiency and best practice. This ensures your system is both protected and performing at its best.

Key areas we review include:

• Xero users – Are the right people accessing your account, and only those who should be?
• Two-factor authentication – Is this enabled for all users to keep your data secure?
• Active bank feeds – Are your bank feeds live and working correctly to support real-time insights?
• Organisation settings – Do your invoices and documents include the correct company details and branding?

From there, we take a deeper dive into Xero-specific configurations that often get overlooked:

• Lock dates – A crucial control to protect data accuracy. We ensure your Xero is locked to the most recently completed period.
• Bank rules – Where possible, we look to automate and streamline transaction processing to save time and reduce errors.
• Chart of accounts – Are there duplicated, unused or unnecessary codes? A clean chart of accounts leads to clearer reporting and better decision-making.
• Fixed asset register – We review whether this is set up correctly, balanced, and aligned with a clear fixed asset policy — including appropriate depreciation and asset thresholds.

Data Consistency: Making Sure the Numbers Stack Up

Next, we turn our attention to the data itself. Using Dext Precision, we analyse your Xero data for:

• Duplicate contacts
• Inconsistent account coding
• Inconsistent VAT treatment

Dext Precision highlights where and when these issues occur, allowing us to understand the root cause and recommend a practical way forward. This step is essential not only for meaningful reporting but also to ensure accurate VAT returns and compliance with HMRC requirements.

Accounting: Sense-Checking the Numbers

Finally, we carry out a high-level accounting review to make sure everything looks as we would expect.

We start by checking your opening balances against your last submitted accounts — because if the starting point isn’t right, everything that follows will be too.

From there, we work through the balance sheet, including:

• Bank balances – Do they reconcile to statements?
• Accounts receivable and payable – Are there any old or unusual balances?
• Prepayments and accruals – Are these supported by clear schedules?
• Wages and liabilities – Have PAYE, pensions and other payroll liabilities been accounted for and paid correctly?
• VAT balance – Does this agree to your last submitted VAT return?
• Corporation tax balance – Does this align with the most recent corporation tax return?

Bringing It All Together

Once our review is complete, we prepare a clear, practical report outlining our findings and recommendations. We’ll then arrange a call to talk you through the results and agree on the best next steps to get your data into the strongest possible position.

And if everything is already in great shape? Even better — you’ll have the confidence of knowing your Xero is working exactly as it should.

Book a Xero Health Check today and take the first step towards cleaner data, clearer insights and total peace of mind.