Practical Accounting Tips for Working Error Free
Tip #1: Start Early in the Morning
Start early in the morning when you are fresh. If you are working late at night when you are tired, you are more apt to make mistakes.
Tip #2: Keep a Steady Pace
Key your entries at a slow and steady pace. Trying to enter data too fast can lead to errors. Also, by switching around tabs too quickly, the program may not have enough time to protect the newly-opened sheet and at times will leave a cell unprotected for a split second.
Tip #3: Double Check as You Go
Common sense tells us to double check our work. Review your entries as you go. Look for signs that something is amiss. Take a look at the totals with a critical eye. The totals should make sense to you. If you knew your sales were about $100M for the month but your income statement says $10M you know something is wrong and need to check into this further.
Tip #4: Check for Transposition Errors
Transposition errors happen frequently and are caused by inadvertently switching two adjacent numbers. For example if you enter the number as 528 instead of 582. Divide the amount you are off by 9 to determine if you made a transposition error. In this example you would be off by 54, and 54 is divisible by 9. Voila – you found the error!
Tip #5: Reconcile Every Month
Reconcile your checkbook each month. You should compare the entries you make on your books with what the bank shows and note any discrepancies. If you are still getting paper statements, ask your bank for statements that cut off at the end of the month instead of the middle. This will make the reconciliation process much easier.
Tip #6: Select a Program That Is Easy to Correct in the First Place
You’ve come to the right place. Our Big E-Z Accounting for Google Sheets has a built-in feature to help you find and correct errors. If you forget to categorize some transactions they will show up on the Uncategorized List, and if you make an error transferring between accounts the system will provide you with a list of errors on the Transfer List.
Hoping you find these time-saving tips helpful since your time is very valuable.