Accounting is considered to be the lifeblood of every business. It is important since it has the information to better manage a business.
As one the leading accounting firms in Dubai, Farhat Office & Co. is able to come up with a list that shows the mistakes that are commonly done by a business and should be avoided to prevent risks and losses.
Six Common Mistakes You Should Avoid
Hiring Unqualified People to Handle Your Accounts
When the wrong people are placed in a company, it is difficult for them to handle anything and for you to manage them.
Not ensuring that your accounting side of things is properly handled can cause you a lot more than you think or expect. Simply because there are a lot of things to do with your accounts, and a qualified and experienced person needs to be designated in that position.
Failure to Record and Keep Receipts
You can ask any accounting firms in Dubai and they’ll tell you It is important that receipts are recorded as soon as possible and not simply disregarded to one side.
When you review your books at the end of the year, you wouldn’t want to see an expense without an explanation or a note on what it was recorded for. This is why receipts should be kept and recorded properly.
This is also a way to know if you are indeed making a profit or simply spending more than you should.
Errors in Data Entry
It should be done as accurately as possible as accuracy is essential in accounting.
Even if things are not done manually these days, there can still be errors as we are all still humans with just advanced technology. For this reason, anything that is still manually done by an individual has risks on its own in committing errors and any bookkeeping services Dubai that are asked will tell you the same thing.
No Receivable and Payable Tracker
It is important that what comes in and goes out are tracked and also what needs to be collected and be paid as well. There should be invoices that are received and issued for these kinds of transactions.
With this kind of tracker, you can hardly miss the clients that still need to pay you and what you need to pay to your suppliers, especially if they are all long-term contracts.
Failure in Backing Up Records
It’s all well and good when you have done everything properly and accurately; however, it can all go down the drains if you are not prepared for the flaws in technology like system crashes.
This is where backing up the data comes in. This should be done on a regular basis to ensure that you have everything in a safe place even an unexpected event happens that could erase all your records and files.
Not Training to Know About the Accounting Software
There are a number of accounting software in the world that any business can use but it is still advisable that they consult someone who is knowledgeable about it like those who are offering accounting services in Dubai. You cannot simply choose something just because it’s famous. You have to make sure that it’s good for your business and the accountants that you have hired are well-versed with it.