Tips to update your accounting
You must understand that the company’s accounting must always be organized and up to date, it is important for the company’s correct functioning and growth. It is vital that you do not procrastinate on this area of the company during your administrative processes. Poor accounting management puts your monetary investment at risk. In our blog Do you need IMMEDIATELY to update your accounting? We give you the tools to identify if your accounting needs to be updated.
Here we list tips to help you “clean” or clarify and update your books:
Check for data entry errors: recording each transaction that is made requires attention to detail and it is possible that errors are made in its execution. You should start by checking the recorded information to identify these errors.
Reconcile your accounts: ALL transactions must match if not, you must look for the reason. As professionals with experience in accounting we recommend performing the reconciliation of accounts at the end of each month. This routine will help you avoid inconsistencies in your accounts
Adjusting entries: must be done after confirming that there are no data entry errors and after reconciling your banks. You should also make adjustment entries to record depreciation and amortization, a provision for bad/loss receivable accounts, and accrued income or expenses. There are three types of adjustment seats that you must use to perform this activity correctly.
Search for duplicates: Find and remove duplicates to avoid inaccuracies in your books.
Close your books monthly: To properly balance your business checkbook, close your books monthly. If you don’t keep financial statements up to date, you’ll run your business blindly and won’t be aware of potential financial problems.
Compare your budget against actual expenses: While cleaning up your company’s finances, analyze your budget and compare it with actual expenses for decision making or to take corrective action as soon as variations are detected.
Consult with an accounting professional: Reviewing and correcting your company’s financial information is a process that should be executed by a professional with experience and clear knowledge of the laws and accounting updates.
My Accounting Now is a company specialized in providing this type of services. We organize, classify, and clean your accounting records. Based on your specific activity we will ensure that your chart of accounts is accurate, we check for outdated reconciliations, general ledger discrepancies, duplicity, or incomplete records. If you want to know more about this service schedule a first free consultation with our team by clicking HERE.