At Business Services.Com, maintaining accuracy in our monthly accounting is critical. We focus on reducing human error through structured processes and continuous reviews. Here’s how we ensure that the accounting work has little to no errors.
1. Monthly Reviews with Checklists
Each month, we take a close look at the accounting work that’s been done, using detailed checklists. These lists help us verify that nothing is missed and ensure every task meets our quality standards. This way, potential errors are caught early on, long before year-end adjustments are needed.
Why is this important? It helps avoid last-minute corrections at year-end, ensuring that your monthly financial reports are accurate as reflected in your management accounts. This allows you to make informed decisions based on up-to-date and reliable financial information.
2. Senior Reviews
After the accounting work is completed, a senior team member reviews it. This extra set of eyes ensures that all entries are correct, calculations are accurate, and everything complies with IFRS Standards. This step is key because it reduces the chances of one person making an error that could go unnoticed.
3. Reconciliations
A reconciliation is a way to cross-check figures between different systems or documents. We conduct two important types of reconciliations every month:
Payroll Reconciliation: This compares payroll records and SARS EMP201s (the monthly EMP201s) against our accounting information. It helps us ensure that the salaries and taxes paid match what is recorded in the accounting records. This reconciliation also detects possible payment errors where employees were over- or underpaid in error. This can then be rectified sooner than later.
VAT Reconciliation: This checks that the VAT returns submitted to SARS are consistent with the financial information in our accounting records. If there’s a mismatch, it can be fixed before it becomes a bigger issue.
4. Segregation of Duties
Segregation of duties is key in reducing human error and maintaining accuracy in accounting. It ensures that no single individual is responsible for an entire accounting process from start to finish. By dividing tasks among different team members, each step of the process is checked and verified by another person. This creates a system of checks and balances where potential errors or inconsistencies are more likely to be identified caught and corrected.
This practice minimizes the risk of mistakes going unnoticed, as multiple people are involved in reviewing and approving the work at various stages. By spreading out responsibilities, we ensure that the accounting process remains accurate and secure throughout.
At Business Services.Com, we care about getting your numbers right. Our focus on regular reviews, thorough reconciliations, and proper division of responsibilities allows us to spot and correct errors early, ensuring that your accounting is always accurate and reliable.
This process of checks and balances is what sets us apart and keeps your business’s finances in perfect shape, month after month. It enables you, as the business owner, to make strategic decisions based on the current and accurate financial records.