Therefore, keeping an adequate record of income, expenses, taxes and other items is a fundamental task of business accounting. We must bear in mind that the information provided by the financial statements allows us to guarantee the viability of our business , since with it we can anticipate expenses, improve our profitability, correct the strategy or increase our profit.
Despite its importance, this task often generates great doubts that end up becoming accounting errors that affect any business strategy in the long term.
Common mistakes in accounting
Sometimes, due to lack of knowledge of australia phone number for whatsapp the subject, carelessness or carrying out this entire process without the help of a professional, our company's accounting accumulates errors that can dissipate the true and real image of the company.
A common mistake is not properly recording the depreciation of fixed assets . Many companies do not record in detail the cost of acquiring an asset, when it was put into operation or use incorrect tax tables as a reference.
It is also very common to close the year without recording the accrual of Corporate Tax , since it is usually calculated the year after the year-end.
And take note of the following error. Previously, expenses from previous years were reflected in box 67 of Expenses from Previous Years, while with the NPGC these expenses must be recorded against net worth. Therefore, do not make the mistake of recording invoices in the current year from other previous years.
It's like not keeping up with tax reforms . Sooner or later, there will be changes that cause errors in the company's accounting. And the problem is that tax regulations change every year, and you always have to keep up to date if you don't want to fall into sanctions, fines, inspections, etc.
How to detect errors in accounting?
A large number of accounting entries can be processed every day. As humans, it is very normal that, even if we know the regulations from start to finish, we make some mistakes. But, can we find out where they are?
Of course, we can use different techniques to find out. The quickest way is to generate a balance sheet of the sums and balances of the different accounts that we are examining and look for anomalies.
Reconciling the balances of bank accounts and credit lines will also help us see if we have expenses or income that are pending or incorrectly accounted for . If this part is under control, much of the work will be done.
It is also worth checking accounts that we sometimes use as a “catch-all” such as 629 “Other services” and 555 “Items pending application”. A good accountant will have these accounts under control at all times and will use, in particular, 555 very rarely, applying each item correctly at the time of its accounting entry .