As per my view, we should not see whether any accounting mistake is big or small. Every small accounting mistake will be big when we will do it for many times. So, we should have good planning to avoid all the accounting mistakes before actually happening. Because if we are no aware regarding this, we have to pay extra time, money and headaches for finding and rectification of these accounting mistakes and errors.
So, here are we providing the information of all biggest accounting mistakes which you can stop before happening.
1st Biggest Accounting Mistake : Not to Follow Steps of Accounting Procedure
If you are designing any accounting software or recording transaction in any accounting software, you may be in trap because you have to change your accounting software design or you have to record all transaction again.
For example, you are recording payroll transactions. You can simply pass the voucher entry. But it is wrong. Its correct accounting procedure is to record the detail of each employee. Then record the data relating to his salary. Then pass the voucher entries relating to payroll.
2nd Biggest Accounting Mistake : Not to Make Budget
In accounting, if you do not make the budget, it is your biggest mistake. What is the use of accounting data if you will not compare with its standard accounting data. It is the just waste of time and money because you will not take better decision without comparison.
3rd Biggest Accounting Mistake : Not to Correct Small Data Entry Errors
This is your biggest mistake, you forget small data entry errors. When we collect small data entry errors, amount of accounting mistake may reach in millions. So, timely find all these data entry errors. Rectify them. Re-conciliate them.
4th Biggest Accounting Mistake : Not to Keep Back up Accounting Software Data
Few days ago, I bought Rs. 4500 external Hard disk of 1000 GB because, I do not want to take risk of loss of my computer data. When I can buy, then you should also buy. If you are accounting form and recording data relating to other firms and company. Never take the risk of not keeping back up. Not to keep back up means you are doing biggest accounting mistake. Who will be responsible when data will loss in any accounting software. Read the terms and conditions of accounting software vendors. All they are not responsible.
5th Biggest Accounting Mistake : Not to Divide Your Accounting Work
You may not be expert in all the things. As the head of accounting department, you should divide all your accounting work. If you are still doing all your accounting work for saving money, you are doing biggest accounting mistake. There are lots of chances of errors if you will do all. You will also delay for completing all the records timely. So, better is to appoint expert of each work of accounting. For example, budget should be made by one expert. Internal control should be done by team of some experts. Tax records should be maintained by other team of experts. So, all accounting work will be free of mistakes.
Related : 5 Common Mistakes in Accounting
So, here are we providing the information of all biggest accounting mistakes which you can stop before happening.
1st Biggest Accounting Mistake : Not to Follow Steps of Accounting Procedure
If you are designing any accounting software or recording transaction in any accounting software, you may be in trap because you have to change your accounting software design or you have to record all transaction again.
For example, you are recording payroll transactions. You can simply pass the voucher entry. But it is wrong. Its correct accounting procedure is to record the detail of each employee. Then record the data relating to his salary. Then pass the voucher entries relating to payroll.
2nd Biggest Accounting Mistake : Not to Make Budget
In accounting, if you do not make the budget, it is your biggest mistake. What is the use of accounting data if you will not compare with its standard accounting data. It is the just waste of time and money because you will not take better decision without comparison.
3rd Biggest Accounting Mistake : Not to Correct Small Data Entry Errors
This is your biggest mistake, you forget small data entry errors. When we collect small data entry errors, amount of accounting mistake may reach in millions. So, timely find all these data entry errors. Rectify them. Re-conciliate them.
4th Biggest Accounting Mistake : Not to Keep Back up Accounting Software Data
Few days ago, I bought Rs. 4500 external Hard disk of 1000 GB because, I do not want to take risk of loss of my computer data. When I can buy, then you should also buy. If you are accounting form and recording data relating to other firms and company. Never take the risk of not keeping back up. Not to keep back up means you are doing biggest accounting mistake. Who will be responsible when data will loss in any accounting software. Read the terms and conditions of accounting software vendors. All they are not responsible.
5th Biggest Accounting Mistake : Not to Divide Your Accounting Work
You may not be expert in all the things. As the head of accounting department, you should divide all your accounting work. If you are still doing all your accounting work for saving money, you are doing biggest accounting mistake. There are lots of chances of errors if you will do all. You will also delay for completing all the records timely. So, better is to appoint expert of each work of accounting. For example, budget should be made by one expert. Internal control should be done by team of some experts. Tax records should be maintained by other team of experts. So, all accounting work will be free of mistakes.
Related : 5 Common Mistakes in Accounting
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