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Accounting Software Mistakes and How to Remedy Them

Even with an accounting program, it’s still possible to commit some mistakes. However, there are some errors in accounting that you simply can’t afford to make, especially if you’re just starting out as an entrepreneur in Singapore. So to brief you with what these costly accounting software errors are, we’ve listed some of the most common mistakes that small business owners commit, together with the tips on how you can possibly avoid or correct these problems.

1. Not Scheduling or Performing Data Backups

Most small and even large Singapore businesses often fail to realize the importance of performing or scheduling file and system backups, and only realizes its importance when their system crashes together with the important files. Yes, you might never have to use your backup files, but if you’ve experienced any system crash, then we bet you know just how important it is to perform data backups to keep your business running.

HOW TO AVOID THIS: Schedule Routine File and System Backups. One way to avoid losing your data is to perform regular file and system backups on your accounting software. It’s even advisable that you store backup files in separate locations so that even if worst case scenarios like natural disasters occur in your area, your business will be immediately up and running.

2. Hiring an Unqualified Accounting Personnel

Let’s say you noticed that your best accounting software from Singapore isn’t giving you accurate expense and income reports: some figures in your financial report don’t add up, and your budget-to-actual statement is not as accurate as you need. You might initially think that there’s something wrong with your software, but you should also consider that the errors might be caused by the software’s user.

Poor hiring decisions often plague small Singapore businesses, since hiring a random person with a so-so accounting experience is much cheaper than getting an experienced accounting professional.

HOW TO AVOID THIS: Improve the Hiring Process of Your Company. Other than getting a good accounting software, you should also work on hiring an accounting professional that understands the industry you’re in as well as the program that your business uses. Make sure that each of your hires are experienced in terms of using an accounting software. The best way to test their skills is to ask them to perform a certain task using your software. Another option is to conduct an examination that will test the person’s basic understanding of the accounting principle as well as the accounting software that you are using.

3. Not Providing Accounting Software Trainings

Most business proprietors think that their employees can just figure out how to use an accounting software. However, today’s accounting software programs have become more complex – in fact, even working with user-friendly programs like QuickBooks can be frustrating for employees if they don’t have any resources to guide them.

HOW TO AVOID THIS: Provide Training Opportunities for Employees. Providing training materials and opportunities for your employees might require you to spend some bucks, but it will prove to be beneficial both for you and your employee in the long run. Giving them training opportunities will help in ensuring that your employees will fully understand the accounting software – its features as well as the best ways to utilize it. Moreover, conducting training will also increase their productivity since they’ll be freed up from all their repetitive tasks with the help of the accounting software.

4. Failure to Upgrade your Accounting Software

Data compatibility issues often occur when an accounting software hasn’t been upgraded. Waiting for a couple of years before upgrading your software usually causes these types of problems. In some instances, you’re stored data might even become corrupted or inaccessible if you wait too long just to upgrade your software.

HOW TO AVOID THIS: Perform Periodic Software Upgrades. Including periodic software updates in your business plan is one way to ensure that you get to upgrade your program. Remember that your software should be updated every two to three years so that your business won’t be at risk of losing any accounting data. Also, knowing when your accounting software company will release the software’s newer version will help you in getting your necessary software updates.

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