Most frequent Mistakes that are done when bookkeeping?

Accounting Bookkeeping

Most frequent Mistakes that are done when bookkeeping

Many people who are new in business either assume the importance of having to keep their books in order. Most people say that bookkeeping is a simple undertaking since bookkeeping entails getting the numbers, and putting them in the correct spot. As simple as bookkeeping appears to be when a business person is working with a system of accounts, there are quite a few common mistakes that can accrue from a full-on business audit receipt to a misplaced receipt. The following are some of the most frequent mistakes people make when audit their businesses. These kinds of mistakes can negatively affect the completeness, accuracy or defensibility of businesses record books. 

Failure to save small receipts

No matter the compensation system that the business uses, all the receipts that the business is given should be saved, or noted in a journal.  When added up all those payments whether big or small add up meaning, it is important to save up on all receipts that the business accrues.

Failure to refund fixed costs

Yes, of all the biggest mistakes in bookkeeping this is the most serious. Failure in refunding fixed costs. Business people are advised to collate, submit for reimbursement any expenses that are paid out of their pockets at once per month to help in preventing losses. To assist in record keeping a business person ought to make all reimbursable expenditures from a different credit account. By doing so a business person can identify if there are any misplaced receipts starting with monthly statements of the credit card.

Failure to reconcile books to bank statements

Any bookkeeping error even if it is little can blow out of proportion, since up-to-the-minute calculations are based on previous balances and figures. Reconciling of books to bank statements can be done automatically by professional who offer bookkeeping services; if a business person handles their own financial records, then they ought to make sure they also reconcile their books to bank statements.

Not keeping a paper trail

Business people ought to strive to maintain records for all the transaction that they do. Starting with whenever they witness a receipt slip, they need to fill it up and file it. If there’s an alternative to having a carbon copy, then they should have one given to them. If they have other bank a/c’s (i.e. cheque account and credit cards): When scripting PAID on an invoice they ought to make a note of how / which bank account the disbursement was completed from on the proof of payment of the (i.e. Carbon Copy (CC) for the credit card, hard cash from the entrepreneur’s wallet) doing so ensures that the accounting course of action is rationalized and well-organized.