Some common mistakes when setting up an accounting system:
Updated: Jun 7, 2019
In delivering training courses at client’s premises using their own data, their are some common problems which I have been able to identify and trouble shoot, my job is to help you spot these so you can avoid falling into the same 'trap'...
These common issues include:-
1) The opening balances are entered incorrectly and does not match their year end accounts. (Especially treatment of unpresented cheques, debtors and creditors balances)
2) If partial exemption for VAT – This is not been recorded correctly.
3) Paypal accounts not reconciled.
4) VAT Rates being used incorrectly.
5) Multi currency function used incorrectly.
6) Not understanding what goes behind the scenes when entering transactions – this shows that there is a common need for basic bookkeeping training.
7) Not knowing the difference between cash accounting and accruals accounting.
8) Not making the most of the features on the software offers.
9) Company not VAT registered activates VAT.
10) Charities – Fund accounting and Projects are not set up correctly, for example: not making the most of the budgeting features especially when using Xero or QuickBooks.
If you are struggling to computerise your accounts or planning to set up the system yourself, make sure to contact me for a free consultancy call to assess your needs and create a strategized plan so that I can help you make the most out of these software's.