Leading accountant seeing concerning rise in businesses with bookkeeping issues
Announcement posted by Invigorate PR 03 Sep 2025
Coco Hou CPA warned businesses to urgently review their financial management including their bookkeepers.
"We are seeing a lot more issues this financial year tax season with businesses that are presenting accounts with lots of problems and errors," Hou said.
"Once we start digging to try and understand what is happening, we find mistakes and problems with the bookkeeper. More bookkeepers entered the industry during COVID and they don't seem to have the experience or ethics required to manage business accounts properly.
"This issue is an ticking time bomb for a lot of businesses."
Hou said bookkeeping errors are quietly draining profits from Australian businesses, with many owners unaware that sloppy record-keeping, outdated practices or underqualified bookkeepers could be costing them thousands each year.
Coco Hou, CPA is a highly respected accountant and tax advisor who heads up national advisory, Platinum Accounting Australia. Hou emphasised that now is the time for businesses to review not just their books, but also the people managing them.
"Every week, I see businesses coming to me for help that are losing money, not because they don't have customers, but because their bookkeeping is a mess," Hou said.
"From missed invoices to unclaimed GST, double payments, payroll errors and poor cashflow tracking, these mistakes add up to serious financial damage."
Hidden dangers in poor bookkeeping
Hou explained that business owners often assume their bookkeeper is across everything, but in reality, errors go unnoticed until they become major problems.
"When your bookkeeping isn't tight, you're not just risking cashflow, you're opening yourself up to fines, penalties and even audits," Hou said.
"If your records are wrong, your tax will be wrong. If your bookkeeper is underqualified or cutting corners, the ATO will still hold you responsible."
Hou said she is now working with a growing number of new client businesses to audit and unpick their accounts. What is being revealed, she explained, is deeply concerning: mistakes, gaps and mismanagement at the hands of bookkeepers who are not operating at the professional standard required.
"Often business owners don't have the expertise to understand or identify the mistakes themselves," she said.
"They trust the bookkeeper and by the time the issues are uncovered, the financial damage has already been done."
Why businesses must act now
With economic uncertainty, rising costs and tighter margins, Hou said the businesses that survive will be those who know exactly where every dollar is going.
"Good bookkeeping is the backbone of business health. You can't make strong decisions, apply for finance or plan for growth if your books aren't accurate," Hou said.
"Now is the time to review everything, from your systems and processes to the capability of your bookkeeper."
She urged business owners to seek professional assistance if they are unsure, noting that an independent review can uncover issues they would never have spotted on their own.
A call for professional standards
Hou warned against seeing bookkeeping as a low-level admin task and instead urged businesses to treat it as a critical professional service.
"Your bookkeeper should be saving you money, not losing it," she said.
"It's not about finding the cheapest option, it's about finding the right professional with the skills and systems to protect your business. Bookkeeping is so important that we have built a network of highly experienced bookkeepers that are able to work with businesses to keep their books in good shape.
"Bookkeeping is the backbone of a good business. This is why we support our network of bookkeepers with mentoring, guidance and training."
About Platinum Accounting Australia
Platinum Accounting Australia is a leading national accounting firm that has been operating in Australia since 2008. With a national footprint, the business offers a broad range of services for individuals and businesses of all sizes including tax planning, accounting, advisory and bookkeeping. Platinum Accounting Australia also offers a highly popular and growing licensee program for bookkeepers and accountants to assist them to grow as part of a respected national network.