Accounting errors occur occasionally, but you may prevent frequent errors with careful preparation and planning. Remember that it usually takes longer to correct an error than to get it correctly the first time.
Surprisingly, recognising and correcting problems early is also less expensive than waiting until the situation has worsened. While some accounting errors are tiny and unimportant, some are more serious and can significantly impact your company's financial health.
Poor procedures may affect the truth of your company's financial health over time. In extreme cases, frequent accounting mistakes and improper practices may lead to your company's collapse.
Finding the Right Ecommerce Accountant
Choosing an eCommerce accountant allows you to focus on your business, relieve yourself from tedious financial tasks, and give you more time to concentrate on other job-related issues.
It also enables you to make the right decisions for your company and future. However, you can’t just pick any business partner just because they offer cheap rates or promise quality services.
Here is a list of six common pitfalls to avoid in choosing the right eCommerce accountant for you:
1. Unclear Communication and Lack of Feedback
Poor communication with your eCommerce accountant or bookkeeper can lead to a lack of feedback and delayed responses. This can cause your company to miss deadlines for tax filing and deposits, resulting in costly penalties and interest.
2. Lack of Resources
Flexibility also plays a role in finding the right eCommerce accountant. Does your eCommerce accountant have the time to dedicate to your company? Do they have access to resources, digital tools and expertise to solve your company’s problems adequately?
3. Disorganised Bookkeeping Process
A disorganised bookkeeping process may lead to discrepancies in the financial statements due to incorrect transactions and inaccurate posting. The solution is defining procedures clearly and giving your bookkeeper/accountant sufficient time to execute them.
4. Overlooking Early Warning Signs
Early warning signs for poor financial health result from financial reporting errors. When your bookkeeper or accountant does not provide you with regular information on your financial status, you may fail to identify these warning signs.
5. Unreliable Computer Systems and Software
You may run into unexpected errors, slow response times, and poor data integrity with an unreliable computer. A reliable computer system can minimise many mistakes and enable you to run your business more effectively.
6. Unreliable Delivery of Reports
A careless data entry clerk may cause many errors, making it difficult to track down financial issues.
With unreliable delivery of reports, your company cannot meet critical financial deadlines such as tax reporting or company audit requirements. For example, unclear invoices and statements can delay the payment process, resulting in late payments and higher fees.
Finding an eCommerce accountant is simple if you can identify their talents and compatibility in working with your company’s needs. With their help, you’ll receive professional aid in financial accounting and bookkeeping, allowing you to collect and save correct financial data. However, you can never be too complacent with getting the right business partner for your business. This is why you should always review your working relationship with your chosen service provider.
At the ECommerce Accountant, we assist online entrepreneurs in reducing their tax liability while increasing their profits. Aside from increasing your AVO, we take your business and address its needs holistically through various eCommerce solutions that can boost your ROI. Our top-notch accountants for online businesses are well-trained in the Australian ECommerce Industry. Above all, we are passionate about eCommerce and can help your business develop. Call us now!