To err is the human and that’s why the auditing profession exists. You cannot eliminate errors but you can materially reduce them.
For any size of business, the prime goal is to ensure that your business grows and thrives to ultimate heights in order to achieve this accounting and bookkeeping play a pivotal role. And one needs to make sure to avoid following common mistakes.
Handling All Accounting Work By Yourself
Most business owners have a do it yourself (DIY) attitude, which means that they do every little thing pertaining to business by themselves. It is good to reduce overhead cost, but you have to understand although in bringing it can be done however as your business grows if you don’t spend valuable time and it is not done properly, your business will be a source of many headaches.
Solution: Plan for a professional accountant in advance, so that you can get your auditing work done fast and thoroughly.
Record Expenses and Income on Time in Books
When you make purchases and pay using credit cards or cash, it is highly likely that you will forget to update that information. Such an action will cause a mismatch between the numbers in your books and those in the bank statement.
Solution: To avoid making errors, make sure to either note down the purchases in a notebook or get an accounting app that eradicates all the paperwork by just taking a snap of the receipts.
Using Proper Software
Proper accounting software is one that meets business needs and reduces the workload for your employees.
Solution: Make sure to invest in the best software available that will give you high accuracy in record making. Ensure that staff is able to use it too and if they are not, offer the necessary training.
Not Organizing Information Properly
Disorganized work is very displeasing and annoying, both for the business owner and your accountant. Failing to have proper categories in your account books makes referencing exhausting and recording difficult.
Solution: Have your work neatly organized to make tasks such as referencing and recording effortless and to give an easy time to your accountant while bookkeeping.
Difference Between Accounts and Bank Statement
When your books don’t match with your bank statement. When this happens you can be sure that trouble may arise soon. Constantly failing to update information will eventually lead you astray because of the confusion it will bring as you try to fill in numbers to make them balance.
Solution: Always make sure that what has been tallied on your books is similar to what is in the bank statement, as it will give you confidence that everything is perfect.
My CFO Portal www.mycfoportal.ca can provide accounting, bookkeeping, Tax, and CFO services to small and medium-size business at a very reasonable cost. We have highly qualified staff members with experience in a verity of industries. We have developed a very efficient system which can deliver service to anywhere in Ontario.