Financial accounting is important for a business. If you do not have financial books, then how can you know the development of your business. For business people who are still beginners, maybe financial accounting can be overcome alone, but how can we manage the bookkeeping of a business that has grown large? It feels like the financial statements cannot be handled alone or personally. This is the reason why people hire an expert like Darcy Services Gold Coast.
Here are some financial accounting errors that often occur among novice business people that you can avoid, in order to have accurate and good financial reports:
Decimal Writing Error
Company financial accounting errors occur if you still use the manual recording. It’s possible, you should write down $ 2,000, but the writing error is $ 20,000. This decimal writing error will greatly affect financial accounting. Therefore, so that there are no data errors in the financial statements, you must be very careful in decimal writing, especially if you use the manual recording.
Don’t Have a Good Financial Plan
Good planning and mature are key to the success of a business. A business will continue to thrive if it has a good financial plan. So it is very important to know what can be achieved and what might not be achieved later.
Having a good financial plan will help you in making a budget and making sure that the money is fully used for business purposes. Managing business finances, financial plans should not only focus on business operations but must also think about business development, also ensure that the business continues to run well.
Error in Calculating Cost of Goods Sold
As a businessman, you cannot just calculate the cost of goods sold, because the cost of goods sold will contain information that can provide assistance for the owners to determine the value of the business. Not infrequently failures occur, because they can not keep records of transactions, and prices owned.
There are things that must be considered in calculating the cost of goods sold, namely; inventory, net purchases, and returns. If you do not count one of these three things, the cost of goods sold is no longer accurate.