In a new company, opportunities, challenges and problems are almost always greeted with enthusiasm and enthusiasm. Why is that? Because with the opportunities, challenges, and problems that exist, the company can grow and develop better than before.
However, quite often new companies instead spend time struggling with fundamental problems in business, namely problems related to transactions and recording money in and out or accounting problems. Without realizing it, accounting problems that occur such as a company’s balance sheet mismatch will lead to a bigger problem and sometimes it is difficult to trace the original source of the problem. Here are 4 problems that often occur in the process of recording accounting:
1. Error in Recording and Reconciliation
When business starts to run smoothly, many entrepreneurs ignore financial reports just because they don’t have much time. By not recording business transactions, the financial statements will not be in accordance with the actual financial condition of the company. Unsuitable and inaccurate financial reports will certainly have a negative effect on the company, such as a bad credit rating or an unsustainable delivery of goods from suppliers.
2. Just Make Reports as Record Keeping
Many entrepreneurs see accounting as only the process of recording company financial data such as to calculate company balances or tax purposes. In fact, financial reports can provide information that can be used as consideration for determining decisions or making strategies in developing the company’s business going forward.
3. Forgot to Save Proof of Transaction
The next mistake is often forgetting to save proof of transactions such as receipts or notes. This happens to related employees due to loss of focus when working on financial reports. Even though it is clear, that receipts and notes can be valid evidence when there is a difference in numbers during the examination of the financial statements. Not only that, receipts and notes are also very useful and can facilitate the audit and taxation process.
4. Mathematical Errors when Counting
Mistakes when counting do not only happen to entrepreneurs but also often happen to experienced accountants. This error often occurs when you are in a hurry or when you are tired and you cannot detect the error. Errors when calculating, when combined with errors during input and reconciliation, can be a big mistake in the company’s financial statements. Where, if the error is not known for months, it can cause more complex problems when you want to fix and solve it.
Those are 4 common accounting problems that often occur in companies, you should avoid some of the accounting problems that often occur. In order to get precise and accurate financial reports.
To reduce accounting errors, many entrepreneurs entrust their business accounting processes with accounting software. Leukeun, a cloud-based online accounting software, can help entrepreneurs create financial reports instantly.