Best Certified Public Accountants in Luton

What are the most common mistakes in accounting? 1) Posting items to the incorrect category codes. This may be through a lack of understanding of what certain items should be classified as or because they are in a rush so select an incorrect code name. 2) Posting lots of items to ‘General expenses’ as they aren’t sure what the items should be classified as. 3) Paying for motor expenses through the business when there are no company cars owned or being leased through the business. A mileage log should be kept instead, and the amounts can be entered on the accounting software. Input VAT can also be reclaimed at the advisory fuel rate for the relevant engine size and fuel type. 4) Reclaiming input VAT on items where it should not be reclaimed. This would apply where there is no supporting receipt for the input VAT claim, or where VAT cannot be reclaimed even if there is a VAT receipt such as on client entertaining as this is not allowable under HMRC guidance. 5) Incorrect dates entered which can make it hard to easily identify which payments or receipts match up to the items if the dates don’t seem to line up. Invoices not entered. This can cause problems such as unpaid bills from suppliers and the figures that decisions are based on would be incorrect. 6) Duplicate invoices/receipts entered: This will show as unpaid as the bank payment will have been matched up to one of the receipts leaving the duplicates showing as unpaid.