Even though many business owners may understand how important it is to learn how to read interim financial statements says Edmonton bookkeeping. The may not know how to scan these reports for errors.

And if an entrepreneur is trying to make financial decisions in their business. Without first reviewing and fixing potential errors that exist. They may not be making any better financial decisions. Then if they were not reviewing the statements at all.

However, is owners may not know what to look for especially when looking at their interim financial statements. In order to understand if there are mistakes. Or what they should do to fix them.

Therefore, by learning to know what to look for when scanning this report. Can help entrepreneurs identify potential errors. So that they can ensure that this statement is always as accurate as possible.

One of the first things that business owners should look for when scanning this report. Every time they print the report out to review it. Is look for any amounts that are overdue more than ninety days.

Ideally, a business owner will always pay their suppliers well before the invoice is overdue that long says Edmonton bookkeeping. Unless a business owner is in extreme financial difficulties, this should not be the case.

So what it typically means if an entrepreneurs does not have any invoices overdue ninety days. This is what the report is showing. Business owners should look to see if there was mistake made when entering the invoice.

Perhaps they accidentally entered the invoice twice. Such as a supplier giving them a paper copy as well as an electronic copy of the invoice. And then accidentally entering it twice into their accounting software.

And as the business owner pays the invoice, it is only entered against one of the invoices entered. Making the other one appear that it is still overdue, causing problems on the accounts payable aging summary.

Another reason why this invoice might be showing as ninety days overdue when that is not the case. Is if an entrepreneur has excellently entered the wrong amount in the accounting software. Making the invoice larger than it actually is.

When the entrepreneur enters the payment that they make. They enter the correct amount, showing amount left owing. When this is not actually the case.

By reviewing any invoice that is showing on their accounts payable aging summary as ninety days or more overdue. Business owners can quickly correct errors that might have occurred, making their AP report more accurate.

The next thing that business owners should do, is review the statements to ensure that there are no round numbers anywhere. Because round numbers typically indicate an estimate.

Business owners should verify whenever they see around number on their accounts payable aging summary. By reviewing the invoice. And correcting the total if they need to.

While there might actually be in invoice that is a perfectly round number. This is less common. And a good indication when a business owner should look at the actual invoice to verify the total.

It can be very easy for entrepreneurs to learn how to review their accounts payable aging summary for errors. And once they learned this, Edmonton bookkeeping says they will be able to make better financial decisions.

Is there a better way to do my Edmonton Bookkeeping?

 

The reason why an entrepreneurs accounts payable aging summary is so important to review says Edmonton bookkeeping. Is because this report will help them understand how much money they owe their suppliers.

And when compared to their other financial statements. Can help a business owner understand how much money they have to spend in their business. Compared how much money they owe.

Before and entrepreneurs starts looking at the total amounts that they owe each of their suppliers. As well as the total amounts they owe all their suppliers together. Business owners should scan the ports for errors.

Without checking for errors first. Business owners may come to the conclusion about their business finances. That is inaccurate, because they might look like they owe more or owe less than they actually do.

And while some business owners may think that they should check the statements once a month. Edmonton bookkeeping suggests that entrepreneurs check these reports for errors every single time they look at them.

One of the first things that business owners can do, is scan report to look for negative numbers. While negative numbers do not necessarily indicate a mistake. And negative number indicates that an entrepreneur has either paid a deposit, or has overpaid in invoice.

Therefore, by verifying that the negative number is either accurate or fixing the mistake. Is an important way that business owners can keep this statement accurate.

Typically, business owners will be able to verify very quickly if they have paid a deposit to a supplier. Or has prepaid an invoice for any reason. And if they have not, it is usually an indication of a mistake.

What the mistake typically is, is that entrepreneurs has forgot to enter the invoice. But has than entered the payment, making it look like they have paid a deposit.

Therefore, a business owner should always ask themselves if they prepaid something and they see and negative number. And if they have not, they should look for the missing expense.

However, business owners may see that there is a negative number, followed by a positive number of the same amount for the same supplier. What this indicates is an accounting error instead.

What this means, is that the business owner did not apply the payment against the invoice correctly. And all the entrepreneurs needs to do is go back into their accounting software, and ensure that the payment is applied to the invoice directly.

By understanding exactly what business owners should look for. When they are scanning their accounts payable aging summary for mistakes. Can help them catch those errors, fix them quickly. In and of having accurate accounts payable reports every time they will report to make a financial decision.

The sooner that business owners can learn how to do this says Edmonton bookkeeping. The sooner they are going to be able to make better and more informed financial decisions in their business.