Financial accounting is important for a business. If you do not have financial books, then how can you know the development of your business. For business people who are still beginners, maybe financial accounting can be overcome alone, but how can a business that has grown even large? It feels like the financial statements cannot be handled alone or personally. Here are some financial accounting errors that often occur among novice business people that you can avoid, in order to have accurate and good financial reports you can visit Mobile Xero Bookkeeper parramatta.
– Combining Personal and Corporate Finance
Often business people combine personal interest money with business interest money, especially for household needs, daily needs, and other urgent needs that often think of using business money first. This, if done continuously, will certainly disrupt the cash flow of your business, and will have a negative impact on the development of your business later. So, it is highly recommended to separate personal accounts from company accounts. Because by separating accounts, in addition to not harming the company, it will certainly facilitate the making of the company’s financial accounting and audit processes later.
– Not Saving Proof of Payment
Every time you make a financial transaction, it helps you save proof of payment, and immediately record it in financial books, because financial transactions have value and are very influential on the company’s financial condition. In and out of transactions, you can see how companies get funds that can be used to finance activities and find out how companies use available economic resources. So recording every financial transaction is important for the sustainability of a company.
– Not Understanding Accounting
For business people, accounting is only seen as a process of recording company finances, whose function is limited to recording expenses, cash income, calculating balances, or tax interests. In fact, there are even more crucial things about accounting, which are financial statements prepared with accounting experts, will present a variety of information related to the company that can be taken into consideration in decision making. So for matters of financial accounting must be handled with accounting experts who understand very well about accounting, so that in terms of decision making it will also be right and benefit the company later.