Accounting software plays a vital role in keeping a record of the flow of internal and external payments. And helps you in running your business smooth but we do make some common mistakes in using it. Following are the common mistakes we do while using accounting software.
Data Entry Errors:
Entering numbers manually in the spreadsheet is one of the major challenges. One wrong keystroke can break your formula or shift a long column of data down cell results in the wrong answer.
Even if you’re very careful to protect your spreadsheets from those types of errors, other simple errors, like swapping numbers (typing 65 when you want to type 56), are possible. If you rush in to finish your accounting process, then more likely are the chances you’ll make this kind of mistake.
How to avoid data entry mistakes:
• By double checking your work, you can avoid these mistakes. Make someone in your team responsible for double checking your data and settle financial statements frequently. Don’t leave the responsibility entirely in one hand. Or do it yourself.
• Train your staff or team on how to use your system, whether it’s the basics of Excel or a cloud accounting software. Make sure you to know how to use such software.
By Not Making Back Up Accounting Software:
Most important thing is to back up your business’s accounting software and other data regularly. Many small business accounting software programs offer the feature of an automatic backup of your accounting program. Or you can use online accounting software as well so they can be back up on the cloud.
Always use it. Also, take the time to double- check your backup files. Because sometimes files corrupt and you do not back up all the data you need results in disaster. A regular check can identify problems with your backup process so that you can ensure you have everything you need to continue operating your business smoothly.
Doing Too Much Yourself:
Most importantly you should have the know-how of software. Its features, tools, specifications etc. because using the right command at the right time is very important.
Don’t overburden yourself by performing multiple tasks. Always do the smart work. But for that, you need full knowledge of the software accounting programs. Or else hire a trained person for handling or operating such software. Mishandling by an unprofessional person may lead to big disasters. Many small business owners do not want to delegate responsibility to other capable professionals, to reduce their expenses but this may lead to a big problem in future.