Common Accounting Mistakes: Part 1

Errors of Omission: People forget things and most of the time it's simply because of the fact that it's difficult to keep track of all of the data. There is so much going on in a business's day to day operations that making sure everything is accounted for can be a difficult task.

Errors of Transposition: This is one that we harp on because too many companies continue to try and enter information by hand. Sometimes, you'll need to enter things by hand, I hear you, there has to be some initial entries, but why make an entry by hand if you don't have to? By using a computer you'll save time, and in turn money, as well as you won't be losing money due to human error.

What does this look like? Let the computer work for you. For all intents and purposes, a computer can have unlimited memory and, generally speaking, won't accidentally swap the 0 and 1 when putting in a 10... If you're trying to keep track of barcodes or expensive assets it's better to be able to scan a barcode or, better yet, a transponder than it is to write down that information and hope that you got it correct.

What to remember? We all make mistakes and we all have a lot to learn, so why not use the tools that are available to lighten the load?