Common Bookkeeping Errors to Avoid

Bookkeeping accounts on paper.

Common Bookkeeping Errors to Avoid

Have you been going over your company finances and noticed that your numbers have major discrepancies? There’s a trail of money that might not have been accounted for? Or you’re losing a lot more than you might have imagined. These are clear signs of bookkeeping errors, and you can eliminate all of these:

Not Having Backups

There are many ways you could lose your well-maintained data within a few minutes. If your data is paper-based, the chances of you losing those documents or them getting damaged due to any natural catastrophe, foul play is fairly plausible. While we set and forget our digital documents as well, they’re not invincible by any means.

A lot can go wrong with your data’s main copy, and depending on how important a particular document is, you should maintain regular backups of it. It’s common practice to create a backup schedule and keep a copy away from the system to ensure no problems take place.

Poor Petty Cash Management

Petty cash refers to an amount of cash that you keep on business premises for everyday dealings. In many cases, you can’t rely on your direct account to make payments. These are generally smaller amounts, which can be reserved for errands, buying lunch, or other menial activities that may be important but don’t burn through your reserves.

Unfortunately, a major error can come from not keeping tabs on this money being spent. Bookkeepers get frustrated when these amounts are not accounted for, which is something business owners can learn from them.

Taking Too Much Time

While bookkeeping is without a doubt a very time-consuming activity, there’s a certain amount of time that each activity is likely to take up. Bookkeepers are well experienced in their craft and take very little time compared to the average person, especially when dealing with conventional documents.

If you’re new to the work, it’s more than likely that you’ll not only be learning various things but also making mistakes. In some cases, these errors can cascade and eventually ruin all your hard work.

Not Hiring a bookkeeper

It makes more sense as a business owner to let bookkeeping be handled by someone that’s properly acquainted with the task at hand and qualified to handle bookkeeping duties. A bookkeeper’s work results in important documentation that reflects the state of your business and how your expenses are on a regular basis.

Considering you depend so heavily on it for your success, it’s necessary to have a dedicated resource to handle all your bookkeeping for you.

At ANM Auditors, we’re working with businesses across South Africa to help them with their financial responsibilities. You can acquire a myriad of services such as business payroll services, VAT accounting services, tax preparation services, business accounting services, and company registration services in South Africa that many businesses will benefit from.

Whether you’re a small business or a large entity, we can cater our services according to your operations. Get in touch with us today.

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