Whether you are working on improving your personal financial recordkeeping or you own a business and want to make sure your books are always in order, there are some important details that come along with keeping finances in good working order. There are a few common mistakes that can throw off a balance sheet or transaction recorder, making it difficult to reconcile money coming in and money going out. Fortunately, if you follow these four tips, you’ll find that your accounting records improve quickly and easily!
- Reconcile Money Records – One of the most important things you can do when it comes to personal or business accounting is reconciling money records on a regular basis. That means checking your bank and credit card statements against your transactions to make sure there isn’t money missing and that everything is properly recorded.
- Check for Entry Errors – We’re all human, and sometimes we notate things incorrectly. Checking for entry errors, such as a misplaced decimal or zero at the end of a dollar amount can go a long way towards correctly accounting your finances. Did you plan to purchase something and changed your mind? Make sure to eliminate incorrect entries on the books so your numbers add up like they should.
- Don’t Manipulate Numbers – It’s so tempting to round up or down that dollar amount, but don’t do it! Manipulating the numbers in your books will only lead you to frustration and the potential for lost money. This is one accounting error you never want to make!
If you’re looking for help with accounting tips and tools, you can always reach out to us at the office of Brad R. Smith, CPA PC for information. We are ready and willing to help you with many of the financial services you need!