Common Human Error Accounting
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Cost Cutters Resource Library Special ReportThe 5 biggest mistakes made in Accounting and Finance today by Jennifer Azara February 13, 2015 Comments (0) You can’t blame these on the computer! The mistakes on this list are strictly human error. And if any of those humans are on your Finance team, you could end up with anything from a headache to a penalty from IRS. The folks at Bloomberg BNA recently compiled the most common errors plaguing finance and accounting teams of all sizes today. Of http://www.accountingweb.com/aa/auditing/human-errors-the-top-corporate-tax-and-accounting-mistakes course mistakes will happen, and nobody’s perfect. But by knowing where they’re most likely to occur, you can minimize the chance you’ll fall victim to them. Take a look at where things are going wrong for your peers now. Error 5: Working on a nonsecure public Wi-Fi network So a staffer cracks opens a laptop in Starbucks http://www.cfodailynews.com/the-5-biggest-mistakes-made-in-accounting-and-finance-today/ or in an airport on the way to a professional conference. If he or she accesses sensitive company information on a public network, your company is exposed. There are a few ways to minimize this risk: Make it a company-wide policy that employees cannot connect over public Wi-Fi on company business. Allow employees access to a virtual private network (VPN) for safer working. Error 4: Overriding data in an enterprise system with figures calculated outside the program There’s a reason programs make it a challenge to override – because doing so opens the doors to a whole host of possible mistakes. Whether the data was calculated incorrectly or miskeyed on the override, your staffers could accidentally put inaccurate info into a system used by many departments. And that can wreak widespread havoc. An override should be a very rare exception and not the rule. If you’re particularly concerned about these types of errors, you might even require a manager’s approval before an override can be
Magazine Search for: Minding the Non-GAAP Measures How to establish disclosure controls for non-GAAP… The M&A Playbook Guiding Growth Strategy in Changing Markets 6 Ways to Cut Your Shipping http://ww2.cfo.com/accounting-tax/2015/03/top-10-tax-accounting-mistakes-cost-companies-billions/ Costs How auditing transportation costs and managing… Accounting & Tax Banking & http://www.cfoinnovation.com/story/9453/tax-and-accounting-mistakes-human-error-still-biggest-problem Capital Markets Risk & Compliance Human Capital & Careers Growth Companies Strategy Technology Accounting & Tax Top 10 Tax and Accounting Mistakes Cost Companies Billions U.S. businesses amassed nearly $7 billion in IRS civil penalties in 2013 stemming from tax and accounting mistakes. Dean Sonderegger March 11, 2015 human error | CFO.com | US - Comments: 3 share Tweet Email Print - Print + Email this article To* Please enter your email address* Subject* Comments* With tax season officially underway, many corporate tax and accounting departments are busily preparing for the looming March deadline. Each year, however, tax and accounting mistakes end up costing U.S. businesses billions. In 2013 alone, U.S. common human error businesses accumulated nearly $7 billion in IRS civil penalties stemming incorrectly reporting business income and employment values. Dean Sonderegger Despite a growing reliance on internal tools and technology, the potential for human error and its costly consequences remain. To uncover the most common mistakes plaguing corporate tax and accounting departments today, and find out how those mistakes vary across company size and industries, Bloomberg BNA conducted a survey of 200 in-house tax and accounting professionals, over half of which represent firms with revenues above $1 billion. From technological pitfalls to regulatory confusion, here’s a look at the top ten end-user and tax-and-accounting rule-based mistakes that may be costing your organization. 1. Manually inputting incorrect data into an enterprise system. With the amount of data entry that occurs in most accounting departments, it’s probably not much of a surprise that manually inputting incorrect data is the most common mistake. While the occasionally erroneous spreadsheet cell is inevitable, when left uncaught it can lead to an audit and penalties. Saving a file with corporate financial or tax data to a personal device
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