6 – Avoiding Mistakes

Now that you understand the basics of preparing journal entries, it is important to avoid common pitfalls that can lead to errors and mistakes when recording your financial transactions.

In larger companies, you will have a division of responsibility to guard against mistakes. For example, the preparer of the entry will often submit it for review to an accounting supervisor to ensure accuracy, and sometimes the preparer of the entry will not be the one to actually record it in the accounting software system. This ensures multiple people are reviewing for accuracy.

For smaller companies, alternate steps may be necessary – read the article below to learn more.

Reflection:

The key to creating journal entries and avoiding mistakes is how well you pay attention to detail.  Based on the information shared in this learning path, can you see how checklists and forms can help to ensure your journal entries are accurate and up to date?