LedgerOptic is designed to sit between data entry and final review. It does not replace professional judgement. Instead, it performs a deep, upfront scan of the general ledger and related balances to surface issues early, before jobs stall, reviews blow out or budgets are exceeded.
It can analyse thousands of transactions in under five minutes and clearly flag items that need to be fixed, queried, reconciled or adjusted. Below is an updated breakdown of what it checks.
1. Transaction-level allocation issues
LedgerOptic reviews individual transactions and looks for clear, high-confidence misallocations based on transaction descriptions, counterparties, account behaviour and tax codes.
Examples include:
- A Telstra or Optus transaction coded to bank charges instead of telecommunications
- Software subscriptions posted to office expenses rather than IT or software accounts
- Large repairs and maintenance transactions that are more likely capital in nature
The focus is on obvious issues that warrant review, not subjective reclassification.
2. GST classification errors (including GST claimed on GST-free items)
LedgerOptic analyses GST treatment at the transaction level and flags inconsistencies or likely errors.
This includes:
- GST claimed on expenses that appear to be GST-free or input taxed
- Inconsistent GST treatment for similar transactions across the year
- Missing or unusual tax codes on material transactions
These checks help identify BAS and year-end GST reconciliation issues early, rather than at final sign-off.
3. Tax-sensitive, non-deductible and FBT-related items
Certain transactions carry specific income tax or FBT consequences. LedgerOptic looks for descriptions and patterns that suggest higher-risk treatment.
Examples include:
- Private or mixed-use expenses
- Entertainment expenses subject to deductibility or FBT implications
- Legal expenses that appear non-deductible or capital in nature, such as costs relating to business acquisitions, restructures or capital assets
- Transactions that may give rise to FBT issues, such as employee benefits, motor vehicle usage or non-cash benefits
These items are flagged so they are consciously reviewed and documented.
4. Balance sheet accounts that require reconciliation
LedgerOptic flags balance sheet accounts that typically require formal reconciliation or supporting workpapers and highlights where issues are likely.
Examples include:
- Payroll accounts requiring reconciliation to STP reports and BAS lodgements
- Superannuation and PAYG accounts that do not appear to reconcile to ATO statements
- Bank and loan accounts with unexplained balances, missing repayments or unusual movements
- Clearing, suspense or holding accounts that should be nil or regularly cleared
This helps ensure reconciliations are addressed before review, not requested after.
5. Tax reconciliation and adjustment items
Beyond accounting accuracy, LedgerOptic highlights items that commonly require tax reconciliation adjustments when preparing income tax returns.
This includes prompts and flags around:
- Differences between accounting depreciation and tax depreciation
- Non-deductible superannuation contributions
- Non-deductible entertainment expenses
- Capital gains discount adjustments
- Franking credit recognition and treatment
Rather than calculating the tax outcome, it advises when tax reconciliation adjustments are likely required so they are not missed.
6. Complex tax and structuring risk areas
LedgerOptic also flags transactions and balances that may indicate more complex tax or trust issues requiring senior review.
This includes:
- Potential Division 7A loans arising from shareholder or related-party balances
- Unpaid present entitlements (UPEs) from trusts to corporate beneficiaries
- Inter-entity and intercompany loan balances that may require documentation or compliance review
- Trust distribution patterns and beneficiary accounts that may give rise to section 100A risk
These are not conclusions. They are risk flags designed to prompt review and ensure the right questions are asked early.
7. Queries linked directly to transactions and accounts
LedgerOptic generates queries that are tied directly to specific transactions or accounts, not generic file notes.
In practice this means:
- Client questions are precise and evidence-based
- Staff can put a job down and pick it back up without re-analysing the file
- Reviewers can immediately see what has been queried, resolved or is still outstanding
This materially reduces dead WIP, repeat work and end-of-month pressure.
Why this matters in practice
Firms see the biggest benefit in timing and control. By surfacing issues early, teams can send client queries and complete analysis before more than a small portion of the job budget is consumed.
Instead of discovering problems late in review, LedgerOptic helps ensure:
- Fewer write-offs
- Faster turnaround times
- Cleaner reviews
- Better use of senior staff time
In summary
LedgerOptic checks the areas accountants already care about but rarely have time to analyse upfront at scale. By flagging GST errors, misallocations, reconciliation issues, tax adjustment items and complex tax risks early, it helps firms complete compliance work faster, with fewer surprises and far less rework.
