Common Accounting Mistakes made by Businesses

Common Accounting Mistakes made by Businesses

If you want your business to succeed, then it’s imperative to stay proactive; identify common mistakes early on and correcting them as soon as they appear can save your company a lot of trouble down the line. This is especially important when it comes to account discrepancies.

Below are some of the most common mistakes that firms offering accounting services in Singapore have seen many businesses make.

Failure to Follow Standard Procedures

Developing standardised forms and checklists are key to ensuring complete consistency and accuracy.

When doing business, always take the time to first find out the necessary information from your vendors, so that you can develop a standardised form or checklist that gives you all the information you need, as well as a written policy for your employees to follow.

Not Setting a Budget

Budgets are necessary to prevent overspending, and they are a way to establish clear, financial goals. Budgets should set realistically with achievable goals.

Data Entry Errors

All accounting firms in Singapore will tell you that you are bound to make mistakes in double entry posting.

It’s imperative that you set aside time on your schedule to check for and correct any possible discrepancies in your accounts. This way, you can check for all of the data entry errors and maintain the accuracy of all business transactions.

Not Backing Up Accounting Software Data

Most accounting software programs have built-in features that let users back up important data. If your account software program doesn’t have one, switch to one that allows back-ups.

After backing up your data, it is crucial to double-check everything and ensure that the important files are working.

If files become corrupted, a lot of important data will be lost. Thoroughness ensures that your business has all the accounting data that it needs to function normally, with backups present in case of emergencies.

Failing to Outsource Important Tasks

A lot of business owners suffer from a mentality that they have to do everything themselves, and that hiring other professionals will undermine their expertise and authority. But, that’s not true. Outsourcing key business functions, such as legal, IT, and accounting can help minimise any possible errors. Furthermore, it frees up your time for other important business-related tasks, enabling you to maximise profitability.

Account discrepancies can and will happen. But, if you’re careful, you can prevent them from causing too much trouble for your business.

To further minimise future accounting troubles, choose to work only with reputable accounting firms that will double check their data and make sure that you’re always on top of your accounting obligations.

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