Accounting

Running Head: BALANCE SHEET ERRORS 1

BALANCE SHEET ERRORS 2

Balance Sheet Errors

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Balance Sheet Errors

Accountants are the company employees trusted with the financial accuracy of the records of the company and presentation of the same. The accountants collect and analyses the financial records and present them to the external and internal users as well as the third parties like financial institutions and vendors. During data collection or analysis, errors may occur which deter the end results presented to the external and internal users who contribute to short-term and long-term success of the company.

An accountant can prevent errors in the balance sheet through data management that is by proper maintenance and collection of financial data. This ensures that records adhere to the accepted policies and procedures and legal compliance (Davis, 2006). Proper controls in monitoring the financial data for implementation in that data should be stored in a secure system. This ensures that the company is making profits through its operations (Davis, 2006).

Compliance with the set deadline is another way of preventing unnecessary errors and in this case, payment to suppliers and lending institutions are the major issues. Accountants need to ensure that the balance sheet figures are correct with respect to any payments pending in order to reflect the right balance that the company owes (Blissett, 2014).

With regard to company’s assets, the accountant should ensure that their acquisition was through the right channels and that there are useful in their performance to enhance the success of the business (Blissett, 2014). The asset portfolio needs to be of a combination of those assets that the company requires in its operations.

Reference Blissett, L. (2014). Accounting Errors That Affect the Balance Sheet. Retrieved from Chron: http://smallbusiness.chron.com/accounting-errors-affect-balance-sheet-60918.html Davis, S. S. (2006, June 15). What Role Does an Accountant Play in Business Operations? Retrieved from Chron: http://smallbusiness.chron.com/role-accountant-play-business-operations-411.html