Accounting errors can range in severity. 

But, whether mild or extreme, they can have serious consequences if not handled properly.

There are three mistakes we see most often:

First, incorrect income reporting — this can result in over-or-under-reporting of income. 

Second, incorrect expense reporting — this includes misclassification or exemption of business expenses. 

Lastly, late payment fees — when reporting errors are discovered late in the accounting cycle, invoices may be overdue and result in additional fees.

Even if your accounting error is as small as forgetting to record the coffee you bought your client last week, the future consequences can put your business at risk if you’re not careful. 

So, how do you avoid these mistakes?

Hire an accountant ;)