Updated: Jul 23
Most common mistakes and how to avoid them.
It’s now easier to handle bookkeeping and accounting because of the latest applications out in the market. It’s an ease and breeze that in our generation, everything is just a simple input, store, access, and there’s the output. This just simply shows the technological evolution we are all currently experiencing.
Mainly because of our technology, we always assume that things will run smoothly. But as a business owner, especially in e-commerce, have you ever noticed some errors that delay your daily objectives? If you have found one, do you know how to avoid it? Listed are the most common mistakes in accounting.
Data Entry Errors
This error occurs from time-to-time. Consider it’s not a machine integrated but rather a human error. Human error cannot be prevented, but we can limit or minimize these errors by reviewing one’s work, train the staff, and prevent an overload of the team.
Failing to back-up the software
Sometimes, files can be corrupted. This is a machine error that can occur any time to a file. When this happens, for sure you’ll be in trouble, feeling fear, anxiety, and of-course panic. We could prevent this if we will save the files regularly, have it backed-up, and ensure that it is saved before turning the system off.
Doing it yourself and not seeking help
Ever heard of the saying “no man is an island?” reality goes, no one can ever do everything by themselves. Look at the biggest and most successful companies, why do you think they are called a company in the first place? To ease your mind, to lift the weight, just simply share the burden with others. This doesn’t mean you’re incapable, but two is always better than one.
Failure to reconcile accounts
A regular check on your accounts will ensure and provide your expected balance. If there’s a gap in your reconciliation, an error is more likely to occur which needed immediate attention. Regular reconciliation will let you know how much cash is available for you, no fraudulent activity, and no bank errors.
Lack of organization
Great organization skill is required for bookkeeping. You’ll be recording all transactions made, keeping receipts, counting taxes, and more. Properly differentiating the income and expenses is a vital part of the organization. If an error occurs, there’s always a fraud to suspect. To prevent things from happening, you must set a company policy and use the correct software, ensuring that you and others are on the same page.
Things can always happen, and if things happen, there’s always a reason. Don’t blame anyone when an unexpected occurrence entered your door, it just simply means you forgot to lock it. Remember, avoiding the problem is better than solving it.