Accounting errors will happen from time to time, but many common accounting mistakes can be avoided with proper planning and preparation. We all know that it usually takes more time to correct a mistake than to get it right the first time. If accounting errors are not observed or handled properly, it may lead to a pain of losing money – either overpaying the tax, or penalty and interest induced by tax code violation. For instance, you have a capital expense and you recorded it as asset but you forgot to depreciate it which leads to a higher gross income as tax base. Some expense, such as business entertainment is highly constrained area by IRS, you would need to properly book it to avoid any risk of being audited.
Why do small business tends to make accounting errors? Even the small business owners, self-employed individuals, and freelancers should set up formal, documented, and detailed procedures for managing bookkeeping and accounting procedures as well for performing other routine tasks. Small businesses have limited resource to handle accounting tasks; oftentimes they just assign office managers, who only have basic accounting knowledge to handle the bookkeeping. Or they may have a dedicate accountant, however with loads of work, he may not have sufficient time to do budgeting, bookkeeping and internal audit all at the same time. As business owner, If you are only expecting your CPA to handle accounting error during tax return period, it would bring CPA tremendous workload and induce a huge service charge.
With Jexet Accounting Plus solution, you don’t need to worry about this anymore. We have dedicated accounting team to serve you daily. Jexet’s accounting team will ensure that accounting error will be discovered before it happens. We will provide you premium service; while you focus on your focus on core competencies and reduce your accounting expense by 25%.