Lars Holdgaard
Lars Holdgaard
How to avoid the 4 most common accounting mistakes

How to avoid the 4 most common accounting mistakes

There are many different fields of accounting - and they are not learned in a single day. The whole world of bookkeeping and auditing is a complex size, which is why common mistakes and problems often arise. But fear not, it can of course be solved. In this post, I will guide you through the most common problems and give you a solution to them so you can become an even better accountant or accountant!

1. Keep track of the paperwork

It can be difficult and confusing to keep track of invoices and other documents, and therefore it is a good idea to find a routine. There are several things you can do to make it easier for yourself:

  • Digitize the documents. There are a several good apps for this that scan your documents just like a printer, just easier. Try checking out Attachment Scan.
  • Store the important documents in the cloud - this way you make sure that they do not get lost. Also for this point, there are programs for exactly this problem. Try Dokview or QuickBooks, for example.
  • Make sure all the documents are up to date. Make it a habit to check the documents regularly and make sure the information is still correct.

2. Always include taxes and VAT

One of the biggest and most common mistakes in accounting is that one forgets to include taxes and VAT in his expenses.

But of course, there are some solutions to this:

  • Be sure to record all transactions. Accountants must have documentation on all invoices regardless of the amount.
  • Sit down and take stock once a year. Find out how much you have to pay in (corporate) tax and VAT.
  • Make a separate savings account for taxes and VAT. That way, you have a constant safety net when you have to pay.

3. Make sure you have a good and strong balance

A good and strong balance sheet makes your business profitable. In addition, your balance sheet helps to give you a clear overview of your current assets, debt, and equity in your company. If your liabilities outweigh your assets, you will not have enough working capital to continue running your business.

Fortunately, you can afford it - I have collected two of the most important:

  • Keep your income high and your liabilities low. Make sure your sales pipeline looks healthy, that your revenue is as high as possible, and that you pay your debt (s) and bills on time.
  • Avoid taking money out of your business. Your profits must remain in the company and be used to strengthen the company's growth.

4. Keep track of your cash flow

A good cash flow is vital if you want to ensure good financial growth for your business. Therefore, you must practice the following points.

  • Be on time with your invoices and send the invoices to customers as early as possible. Then you are more confident that the payment will come in due time.
  • Make sure you get the payment on time. You can do this by making it easier for your customers to pay you, for example using MobilePay or Nets.
  • Keep track of your expenses. As long as you keep your cash outflows low, your cash flow is positive and therefore you must keep an eye on your costs and aim to reduce them wherever possible.