Don’t Let Errors Affect How You Represent Your Business

6 Important Steps To Correcting Your Financials

1. Obtain An Accounting Software To Avoid Bookkeeping Mistakes
Using an accounting software allows you to have built in checks and balance in order to avoid costly bookkeeping mistakes. Business owners should review the reporting requirements of their industry and ensure that their accounting system meets at least the minimum reporting requirements.

2. Separate Business vs. Personal Expenses
Maintaining separate bank accounts is crucial as your business continues to operate and grow. Keep all business related receipts for accounting purposes and communicate immediately to your accountant any changes in you business expenses.

3. Properly Close Your Books And Review Previous Financial Statements
Accidentally recording transactions in a prior period can be avoided by setting a year-end closing date and password to prevent changes to prior reconciled transactions. Most software’s such as QuickBooks allow you to lock and unlock in order to make adjustments. But this should be done carefully. Reviewing your previous balance sheet report should help identify if changes were made in order to properly make adjustments.

4. Check Your Financial Statements For Errors
Inputting transactions into your accounting system must be done carefully in order to have correct debit and credit balances. Asset accounts should have debit balances and liability accounts should have credit balances. To avoid incorrect balances, review the details within the accounts to ensure that the entries were posted correct and there weren’t any duplicated adjusting entries.

5. Conduct Periodic Review
Reviewing your financials periodically will allow you to catch errors earlier in order to fix in a timely manner. Scan through the expenses that were entered to ensure that they weren’t misclassified. Scan for assets that should’ve been capitalized based on your industry/company policy and make adjustments to reclassify them. Conducting periodic reviews will reduce the amount of stress of preparing your financials for tax purposes.

6. Get Help When Needed
Business owners should access their current resources and time available to keep books current and up to date. Outsourcing the accounting to a professional accountant will save you time that could be spent tending to other operational issues. Please contact our office for assistance through Live Chat, , email us at info@trupointaccountingandtax.com or give us a call at 407.203.3031.