4 Accounting Mistakes to Avoid in 2023
Being an accounting practice in the UK is not easy. It demands a lot of patience, time, hard work, and focus in maintaining clients’ financial data accurately and in a presentable format. A small error or mistake can lead to can cause serious damage to your business. Therefore, you cannot afford to make a mistake while maintaining and filing the data. Based on our years of experience, below are some of the most common accounting mistakes that you can avoid to ensure a happy year for you as well as for your client, and they are:
- Incorrect Entries: Accounting and bookkeeping are all about numbers, but a single wrong entry can spoil all your calculation resulting in a waste of time and effort. The most common error is simply entering the wrong amounts, incorrect dates, or selecting the wrong category of the given cost, and you need to make sure you are not repeating these mistakes in the coming year. These incorrect entries hurt even worse if you are doing it for a VAT-registered client.
- Not Checking Payable/ Receivable: Well, the second error on the list is not checking the account payable and account receivable. Accounting to accounting experts in the UK, you can easily overcome these mistakes is to bring up a ‘Accounts Payable’ report, as it shows who you owe what to on any given day. If you have some items that are negative figures, then it’s likely you have a bookkeeping problem. Another common indicator of a mistake is where this report has negative figures on it, aka incorrect balances. So, to avoid this mistake, closely check your accounts payable and accounts receivable reports.
- Not Using Accounting Software: We live in the age of the internet and if you are still using a spreadsheet to maintain your clients’ financial data then it is time to reform and modernize your accounting practice. Modern accounting and bookkeeping software are easy to use and affordable. Investing in the right accounting and bookkeeping software can help you avoid mistakes and ultimately make it easier to handle your finances. There are many benefits of using reputable accounting software such as it becomes easy to back up data in case of an emergency, you can have all the financial data at a centralized location, and easy availability the data whenever required. Additionally, you can also suggest your clients consider cloud accounting and cloud bookkeeping services as it comes with tons of benefits.
- Not Taking the Back of The Data: In case, you keep manual records using Excel or Google Sheets, it is crucial to back your data up daily. You should back up your data even if you are maintaining the records digitally using online accounting software. Most online accounting software (including Xero) will back up your data automatically every 24 hours but always check with your software provider to ensure it is backed up at least once a day, ideally to several safe and secure locations.
Want To Avoid Making These Mistakes?
If you are still repeating these mistakes or feel like taking assistance from accounting experts in the United Kingdom, then help is just a call away. Call Affinity Outsourcing at +020-3794-0514 and get all your problems sorted out by industry veterans. Whether it’s bookkeeping, accounting, payroll, or anything related to Tax accounting, you will get expert assistance and services at affordable rates.
Affinity Outsourcing is one of the best accounting outsourcing services providers in the UK. To learn more about the outsourced accounting services, how much will it cost you, or how you can hire an accountant, feel free to write your requirements to Affinity Outsourcing at firstname.lastname@example.org.
How Affinity Outsourcing Can Help?
If maintaining your clients’ accounts, books, and other financial data is giving your sleepless night, then it’s time to consider professional help from Affinity Outsourcing. Our outsourced accounting, bookkeeping, and financial services will make sure your time is saved, you are not falling victim to common mistakes, and you have enough time to focus on business growth activities. Get in touch with our expert accountants today.