FinanceRegs.com » Top 3 reasons accounting mistakes happen

Top 3 reasons accounting mistakes happen

August 27, 2008 by Carol Katarsky
Posted in: Best practices, Communication, Fraud prevention, Hiring & training staff, Internal controls, Special report

Keeping other department’s errors from creeping into Accounting is a never-ending battle. Get a handle on these three mistake breeding grounds and you can sleep easier at night.

  1. Poor communication– A purchaser amends a contract verbally and doesn’t tell A/P. The new HR manager forgets to tell Payroll about two new hires that started last week. The simplest oversights in other departments can cause huge headaches in Accounting. You can’t do the communicating for them, but staying visible — and making sure other managers understand why you need certain info — can improve your odds of actually getting what you need when you need it.
  2. Inefficient workflow/Unclear procedures  – When employees don’t understand what the procedure is for changing their withholding or submitting an expense report, you end up spending twice as much time answering questions and fixing mistakes. Once a year, set aside time to review policies, clarify questions that have popped up recently and send a friendly “reminder” memo to staffers. It helps keep your procedures airtight and it serves as a re-training tool for veteran staffers and newbies too.
  3. Handling things more than once — The more times you (or a co-worker) handle a piece of paper, make notations or access a file, the more likely it is that something gets lost or transposed, or a deadline is missed. As much as possible, make “One and done” a goal when it comes to handling routine paperwork and requests.

What tactics do you use to rein in these bad practices? Share your tips and strategies in the comments.

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One Response to “Top 3 reasons accounting mistakes happen”

  1. Nancy Says:

    I scream, I kick, I holler.

    I don’t pay their bills and when the vendor put their orders on hold.
    Then I tell them that generally accepted accounting procedures dictate…. what they are responsbile for when they place an order. Sometimes it helps and sometimes it does not make a difference.

    Accounting Rules! If it ain’t GAAP, it’s scrap!

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