Know the 7 most Intricate Accounting Errors in QuickBooks
QuickBooks has been revolutionary in the field of accounting software. With it’s myriad features and easeof use, it has been the most preferred accounting software for big and small businesses alike. QuickBooks is the ultimate solution for getting complex accounts balanced, for computing tax liability, for seamless accessibility through smart phones and for making impressive presentations but sometimes it does happen that QuickBooks are not able to help us in getting correct accounting statements due to some common and intricate errors made by the account admin in recording transactions.
Learn about these common yet crucial mistakes and take precautionary steps to prevent them so as to enjoy uncluttered and updated books of account to ascertain the correct financial position of the business and make sound decision based on them.
Error of Omission- such errors occur when the user completely skips to record a transaction and as such at the time of making final accounts is unable to match the balance sheet. This error might lead to misrepresentation of accounts.
Error of Reversal- This error is the most common one, in error of reversal the user instead of debiting the account credits it and vice versa. Such errors if tracked can be reversed in few simple steps in QuickBooks.
Error of Principle-Accounting principles and laws keeps on changing and the accountant must keep it updated with them or else error of principle might occur. Such error takes place when a wrong accounting principle is applied.
Error of Commission-Such errors occurs when the transaction and partly recorded in wrong position. For e.g. a transaction has been recorded under right class but under wrong subsidiary ledger.
Errors of Subsidiary Entry- When all entries are manually uploaded in books of account then such errors are most likely to occur. It involves wrong posting of any entry.
Preventing Errors-Errors could be prevented if the accountant has complete knowledge and develop full internal control of the accounting software.
Detecting Errors- In order to detect the errors that causes problem in the book of accounts, various reconciliations has to be made.
There is nothing to panic about if you are among the ones who make one or more mistakes mentioned above. QuickBooks is a simple and hassle free accounting software and in case you find it difficult to use it then it is because of such recurring mistakes being made in marinating the books of account in the company’s account with QuickBooks.
QuickBooks online synchronization is the ultimate solution for getting rid of or at least reduces the chance of such errors to occur. QuickBooks Online integration will automatically download all the transactions as and when they take place without the user having to manually upload them every time.
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Managing Bills in QuickBooks online is extremely simple and it also minimises the chance of wrong entry of any bill. Learn more about it and be a pro at it. Forget the clutter of bills and invoices as recording and managing them has been made simple with QuickBooks online.