Common Bookkeeping Mistakes

Try to avoid the following:

Incorrectly recording transactions

This can happen when transactions are recorded into the wrong bank account or when incorrect amounts are recorded as they are being reconciled. Especially if they lack consistent attributes - when transactions are classified into the wrong account or category. Want to know more about monthly allocations and reconciliations? Click here

Omitting Transactions

Omitting transactions can occur when transactions are not recorded, either because they were forgotten or incorrectly documented.

Miscalculations & Lack of Internal Controls

This can happen when math errors occur in the process of recording transactions or preparing financial statements - i.e. currency conversion rates or inconsistent reporting of transactions. This is why Bookkeepers for U can help. We manage your finances and align transactions with bank statements to maintain accuracy on financial reporting. Setting rules inside your bookkeeping software can eliminate future errors-  when there is a lack of controls to ensure the accuracy and integrity of the accounting and bookkeeping processes.

Incomplete or missing documentation

This can occur when documentation supporting transactions is not maintained correctly or is unavailable - ensure you upload receipts or attachments to each transaction in your bookkeeping software. To avoid having to chase it down. Ensure that qualified - and or experienced personnel are looking after each area of bookkeeping.  When one person is responsible for multiple aspects of the accounting and bookkeeping process, which can lead to errors and potential fraud. Forgetting to record small transactions such as petty cash.

Failing to prepare a budget:
Implementing a financial plan will keep your business on track, and most Bookkeepers are experts in setting up budgets within your Accounting Software. Failing your cash management. An integral part of your cash flow is processing invoices and having those invoices tracked for payment.

Reflecting on your bookkeeping needs...

Placing all of your time into record keeping when you should be working on your business, creating sales and customer experiences. This hampers the progress of your business.  By seeking out a professional bookkeeping and accounting firm - you can put your mind at ease - as Bookkeepers For U will provide  the proper implementation of internal controls and following good accounting and bookkeeping practices with every transaction, avoiding these issues moving forward and we can also help tidy up your books to ensure they are in order. This will free you to grow your business and pave the way to your business success.