Avoid These Common Accounting Errors – Pt. 2
Small business accounting in Long Island, NY, requires accuracy and diligence. When using your small business accounting software, be on the lookout for these common errors. They may not show up on your suite’s trial balance, but they can affect your data – and how you might use it.
Commission: A commission error occurs when entering a transaction in the right class but the wrong subsidiary ledger. This error might occur if you apply a payment to the wrong invoice. The customer’s balance may be accurate, but where the payments have gone may not be.
Subsidiary Entry: Subsidiary entry errors occur when entering the incorrect information in a transaction. If you suspect you made this error, perform an accounting reconciliation to detect discrepancies between your internal records and the one kept by your financial institution.
Prevention: The most effective way of fixing errors is stopping them from being made. Ensure that your recordkeeping processes are consistent and uniform, and get into the habit of standardizing your procedures when working with your accounting software. Working with a small business accountant in Long Island, NY, can prevent errors and streamline your business. Contact Michael J. Berger & Co. to begin working with an experienced accountant.