Avoid making common accounting mistakes
Like most things, accounting is easy when you know how. The trick is to get your accounting system working correctly from the outset, because systematic accounting mistakes that run undetected for months, or even years, can cause your business to lose money in fines. Helen Cousins ofHelen Cousins of Xcel Business Solutionsshares some commonaccounting mistakes on Tweakyourbiz.com, particularly regarding legal requirements. Read on to find out how to save your business from making costly errors!
Accurate accounting records are a legal requirement
You're obliged to keep proper books of account for legal reasons – thisapplies the world over. At a minimum, businesses are expected to keep good accounting records
so that they can correctly calculate and pay their taxes to the government. It is a sad fact of business that you are an unpaid tax collector. If you operate through a company, the company
is obliged to keep books and records
that show the company's true state of affairs.Fines and penalties are levied against companies that don't comply. Proper accounting
is a requirement of being in business.
Use a systematic approach to avoid accounting mistakes
The easiest way to avoid making accounting mistake
s is to use a systematic approach to your accounting records
. It's easy to make accounting mistakes
, but easierfor you to prevent them from happening in the first place.
Every business needs to have a systematic approach to accounting, so that little accounting mistakes
don't add up to big losses. Once your system is set up, the routine of maintaining it is quite easy. Always consult with your accountant when initially setting up your accounting system
, to make sure that the system is tailored to best suit your needs.
For more on accounting
best practice, sign up for our free daily Tax Bulletin
Note: 5 of 1 vote