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4 Steps to Ensure Fully Accurate Accounting

Posted By Administration, Monday, November 20, 2017

Accuracy is absolutely paramount in business, especially when it comes to accounting. Many small to medium sized businesses handle accounting lackadaisically, putting it off until the annual tax filing session comes around. While common accounting software has made it easy for anyone to keep track of every aspect of business operations, these applications don't automatically ensure accuracy in all scenarios. Fully accurate accounting means knowing for sure that your records, totals, and calculations are correct with zero margin for error. Luckily, you won't need to have a masters in accounting in order to achieve exceptional accounting accuracy with the help of the 4 tips below:

1. Create Daily and/or Weekly Summaries

Postponing accounting duties is never a good idea because time tends to let things slip through the cracks. By reviewing everything on a daily or weekly basis you'll be in a better position to spot and corrections any inaccuracies with a fresh memory of the recent transactions. Obviously, you're much less likely to discover a mistake a year after the date it happened, versus simply staying on top of it on a weekly basis. Daily reviews are typically only recommended for businesses that conduct a high volume of transactions per day. Depending on the amount of revenue you're generating, it may be worthwhile to have an in-house accountant with a degree in accounting.

2. Request and Keep and All Receipts

One of the first things you'd learn when earning an online masters in accounting is the importance of proper record keeping. An accountant can only do so much to compensate for lack of comprehensive records. By keeping every receipt, order confirmation email, transaction ID, and other data related to your purchases and sales, you'll be able to provide your accountant or software with the most accurate numbers and details possible.

3. Practice Digital Data Redundancy

A commonly overlooked cause of inaccurate accounting is the possibility of data loss or modification due to the lack of digital redundancy. In other words, it’s best to have all of your accounting records backed up on a daily basis, or even more frequently if you're doing high volume. Some companies set their accounting software up on multiple machines and schedule them to perform automated backups every 1, 3, or 6 hours as preferred. Doing so ensures that an unexpected data loss event will never leave you with a small chunk of inaccuracy that can't be rectified.

4. Quarterly Audits by a Professional Accountant

If after taking the steps above you still have a sliver of doubt about the accuracy of your accounting, it may be worthwhile to have an accountant conduct an audit at the end of every fiscal quarter. Doing so could help you discover errors that you or your employees might have otherwise overlooked.

Emphasizing the Importance of Accuracy in Employees and Partners

Of course, all of the above tips won't help you if your workforce and associates aren't on board with the objective of maintaining complete accounting accuracy. Thus, it's imperative that you continually emphasize the importance of ongoing accuracy in daily operations during routine meetings and conferences. 

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