What are some of the most common accounting mistakes?
May 28, 2014

For those in the corporate world, there's nothing like going into a business situation being armed with all the information you need. After all, this beats being caught off-guard. What if you're giving a big presentation in front of the higher-ups at an organization and it's going well, that is, until one of them asks a question and you don't know the answer?

Preparation and foresight are significant keys to success in any company. This is no less true at an accounting organization. Not only do these types of professionals need to know as much as they can about bookkeeping and other financial functions, but they must also have insight into the industries in which their clients operate. 

It would be very useful to be aware of the most common mistakes made in this sector. This way, higher-ups can work this knowledge into accounting training programs and make employees as well-equipped to handle potential challenges as possible.

1. Over-investing
As Venturity Financial Partners Founder Chris McKee told Forbes Magazine, it's common for small business owners to overspend on accounting software. This could easily apply to accountants themselves. Owners of firms need to give employees access to quality bookkeeping programs to enable them to help clients, but there's no need to overspend. The magazine recommended focusing on software that has all the tools necessary to take care of financial tasks needed - no more, no less. This is especially true if the firm offers a range of software solutions for businesses of different sizes.

2. Hiring non-professionals
Within an accounting firm, especially a new one, it can be tempting for the owner to want to hire friends and family. This can help them out and save the leader a few dollars on advertising an open position. However, firms need to be sure to bring in individuals who are highly qualified and will enable the company to grow and secure clients.

This is also an important quality to stress to potential customers who are on the fence about on-boarding a bookkeeper. Small business owners may want to outfit a family member with accounting software and let them run with it. But, bringing in a professional is almost always worth it - they're very efficient, know the laws well and can act as consultants.

3. Failing to check work
This is one of the most basic tenants of accounting, but seasoned professionals might let this slip - always check work. As The Houston Chronicle pointed out, balance sheet errors are extremely common. A missed decimal point or transposed number can wreak havoc on records, and unless the bookkeeper checked his or her work, this might go unnoticed for some time.

Nexus: G-WEBCD1