If you need help with accounting, you can turn to Brad R. Smith, CPA PC to get the expert assistance you need. Our team has extensive experience in the accounting industry, and we have seen our clients make the same mistakes again and again. In this article, we will go over a few of the most common accounting mistakes and explain how to avoid making the same errors yourself.
• Poor Record Keeping – One mistake people make a lot when it comes to accounting is not keeping track of their files. Even if you use digital records for your finances, you will still need to keep these records organized, labelled, and store them safely. You need to be able to access the records of your expenses and revenues in order to file taxes, comply with audits, secure business funding, and much more, so we encourage you to keep careful track of all your financial information.
• No Checks or Balances – A mistake many small businesses make is having just one person handle all their accounting. While it does make sense to leave the record-keeping to the team member who is best at it, you still need to have others check the records periodically to make sure everything is accurate and free of mistakes. Mistakes in record-keeping compound into other areas of your business, so make sure to check the records often.
• Incorrect Software Use – Lastly, we have seen many people invest in accounting software only to use it improperly or to fail to use it to its full potential. While digital accounting tools are powerful and can greatly improve your overall workflow, you still need to take the time to fully master them—or to hire someone who already has.