Post by account_disabled on Mar 4, 2024 0:39:13 GMT -8
It is the entrepreneur's duty to know all areas related to their business, regardless of their familiarity with industry practices. Accounting, for example, is an area that does not usually receive much attention from businesspeople, due to its bureaucratic “appearance”. An entrepreneur who does not deal with this area will probably make accounting errors that will harm his business. With this in mind, we prepared this article for you. In it, you can learn about some common accounting errors in companies and the important role of the accountant in an enterprise. Continue reading and learn more about each of them! cta2-contabeis What are the main accounting errors made in companies? It is common, especially in micro and small businesses, for financial and accounting management responsibilities to be assigned to the accountant. This happens because accounting is still seen by many businesspeople as a boring and bureaucratic aspect of the company. For many, it exists only to comply with laws established by the government. When accounting does not receive due attention from the entrepreneur, several accounting errors are made.
Discover the main ones and see how they harm the company: 1. Mix personal expenses with business expenses Mixing these two types of expenses is one of the most common accounting mistakes made by beginning business Paraguay Mobile Number List owners. Generally, the entrepreneur is the “do-it-all” of the company, being responsible for sales, people management, finances, product, etc. With the accumulation — and mixing — of business and personal responsibilities, the separation of these expenses ends up not being done. However, making this mistake over a long period of time can be fatal to the business. This is because the entrepreneur can default and lose control of business and personal finances. As a result, you will have serious difficulties in knowing what the result generated by the business is, in making projections about the company's future and, in the worst case scenario, leading the enterprise to bankruptcy by taking too many resources to pay personal debts, impacting the necessary cash flow. for the survival of the business.
Not updating entries and reconciliations Not updating entries and reconciliations is a frequent accounting error. It can be committed due to the entrepreneur's disorganization or lack of time. Spending a long period without carrying out this activity will negatively impact decision making, which must be carried out with updated reports and financial statements. With outdated data, the company may be in the red without knowing it and may miss payment deadlines. This makes it difficult, for example, to purchase inputs and obtain credit. Furthermore, the chance of making wrong calculations increases. No professional is free from making mistakes, but when the task involves carrying out complex accounting calculations, attention and up-to-date data are essential. Faulty calculations, outdated information, typing errors and lack of review of released information can give rise to various failures and financial losses for the company. 3. Not organizing accounting documents Just as keeping entries and reconciliations up to date is essential for the company, accounting documents must also be organized appropriately.
Discover the main ones and see how they harm the company: 1. Mix personal expenses with business expenses Mixing these two types of expenses is one of the most common accounting mistakes made by beginning business Paraguay Mobile Number List owners. Generally, the entrepreneur is the “do-it-all” of the company, being responsible for sales, people management, finances, product, etc. With the accumulation — and mixing — of business and personal responsibilities, the separation of these expenses ends up not being done. However, making this mistake over a long period of time can be fatal to the business. This is because the entrepreneur can default and lose control of business and personal finances. As a result, you will have serious difficulties in knowing what the result generated by the business is, in making projections about the company's future and, in the worst case scenario, leading the enterprise to bankruptcy by taking too many resources to pay personal debts, impacting the necessary cash flow. for the survival of the business.
Not updating entries and reconciliations Not updating entries and reconciliations is a frequent accounting error. It can be committed due to the entrepreneur's disorganization or lack of time. Spending a long period without carrying out this activity will negatively impact decision making, which must be carried out with updated reports and financial statements. With outdated data, the company may be in the red without knowing it and may miss payment deadlines. This makes it difficult, for example, to purchase inputs and obtain credit. Furthermore, the chance of making wrong calculations increases. No professional is free from making mistakes, but when the task involves carrying out complex accounting calculations, attention and up-to-date data are essential. Faulty calculations, outdated information, typing errors and lack of review of released information can give rise to various failures and financial losses for the company. 3. Not organizing accounting documents Just as keeping entries and reconciliations up to date is essential for the company, accounting documents must also be organized appropriately.