Guidelines to Avoid Accounting Mistakes

by Benny Gala DNS Accountants

The mistake is a part of work, and accounting is not the exception. While running your accounting firm sometimes you might come across various mistakes made by your accountants, few of them can be serious as they can waste your time and money as well. This is one of the main reasons for hiring a specialist accountant for properly managing all your financial details of the business. But hiring an expert is not the only solution to streamline your entire accounting system. You must follow a few guidelines to avoid common accounting mistakes and maintain a smooth and quality accounting process in your business –

Updating accounting books – You must update your accounting books to show each transaction that takes place between your business and other parties. It’s very important to keep the record of every accounting transaction you made. Unrecorded transactions are considered as errors. That can lead you to make your tax file incorrectly. This can create false financial statements and waste a big amount of money. Updating your accounting books for properly recording all the financial transactions can help you to avoid such issues.

Account reconciliation – Account reconciliation is a great way to verify your records in accounting books with an external recorder like a bank statement. This process can help you to find out any errors in your books and do the needful.

Receipts – You must always keep filing your business expense receipts. Later you might forget about any payment and unable to match it with the corresponding bank statement. Then you’ll have to guess and write down in your accounts report. Such misreporting is not desirable for maintaining a good accounting practice. Every time you initiate any business transaction you should keep the receipt as a record. Keeping the right records of every transaction will help you to keep a clean and correct accounting record.

Self-assessment tax return - For cost savings many small business owners are there who do not hire an expert accountant for managing their accounts and tax rerun parts. Tax return and filing without an expert is a risky process, as you can make any mistake at any time and later that can become costly for you. An expert knows all the tricks and tips to file a correct tax return for you and reduce your costing. So it’s always better to take help from an expert.

Mixing personal and business bank account – You must always keep a separate bank account for business. Keeping the same bank accounting for business and personal use can create confusion in many stages, and later while filing your tax you might come with inappropriate data in many places.

DNS Accountants is a reputed accountancy firm that offers specialist accountants in Harrow at competitive pricing. Harrow based accountants at DNS well understand their clients’ needs and offer high-quality tailor-made accounting solutions for all business types.