Posted by Are you feeling distressed about your accounting assignment? Do data entry errors ruin your balance sheet? Are you finding ways to refrain from these errors? Then worry no more. Here the types of data entry errors and ways to prevent them are discussed for your accounting assignment help. By reading these, you make an error-free paper and pass your test with flying colours. So to do that, first, begin with the basics, such as the meaning of this.
What Is Data Entry Error?
As an accounting student, you know how critical data entry is. All your financial data depends on it, and a small mistake can ruin your paper. As the name suggests, it means incorrect data input. It is the most common mistake not only happens by students but also by specialists. Students who are not confident enough with their data input, search online for assignment help. There are various forms of it which you can read below.
Types of Data Entry Errors
To not commit these, you should be well aware of their types. So these types are below for you to understand.
Error of Principle
It means recording an item or number which does not follow the accounting principle. Usually, the student mistakenly puts an entry in the wrong account, and even though the amount is correct, it is in the wrong place. Here the individual expense is recorded as a tax expense, business expense or vice versa. It is a serious procedural mistake and can have severe consequences.
Error of Omission
It occurs when you forget to put a transaction in the account entirely or partially. You can say it is not intentional but overlooked. Mostly, it happens when you lose a receipt or transaction document. Once it is finished, it is hard to find it. Either you forget to record the transaction on the debit or credit sides. At last, everything seems to be balanced out, but it won’t because of this.
Error of Commission
It simply means mishandling an item by putting it in the wrong place. Here the amount is correct, and the general account is also correct, but the sub-account you used is wrong. By this, the incorrect account gets debited instead of the correct one. Similarly, an irrelevant account gets credited instead of the real one for this mistake.
Error of Duplication
It happens when you enter the data such as income or expense more than once. In simple words, it is debited or credited twice for the same thing. It can happen when more than one person can access one account, and both make the same entry.
Error of Transposition
When you record the information in the wrong order, it happens. In other words, when you reverse the number, you commit the error of transposition. Such as, you mistakenly write 45 as 54. While typing these, you will be in a hurry hence it will happen. But if you put words instead of these, it will not happen. It can cause understating or overstating of an account transaction.
Compensating Error
It happens when you compensate for one data entry by entering another wrong information. These entries cancel the order and balance it out as zero. Because they are not single errors but a combination of two, it is nearly impossible to detect them.
These are the most common data errors you can perform. But how to correct those? Read below to see the solutions.
Easy Solutions to Prevent Those
Every problem has its solution, and for these mistakes being careful with financial statements is the first step. However, there are several other tips to help you out. These are:
Don’t Overload
When you want to do everything in one go and start your project at the last moment, it can cause these errors. Therefore, do not overload yourself and work on it one by one. Start early so you won’t have to hurry at the last minute.
Get Proper Training
If you lack the proper training, you will always face issues regarding these. Always make sure you understand the accounting system and its descriptions. Similarly, get proper training regarding why the data is important, what are the consequences of wrong input and how to do it correctly.
Always Review for Errors
After making entries, double-check to see if there are any errors, such as deleted data or typos. Moreover, it is the standard procedure for every other task before submission. Always start early to get time for checking and then submit your work.
Use Right Software
There are many software available online to review and analyse data entries, so you could change those if needed. If you don’t know the right tool, it can decrease your efficiency and consume much of your time. Therefore, always search for new and credible software and use those. If you don’t know, then ask your guide or classmates about their preferences.
Check Difference
Always remember to check the difference between your budget and actual expenses. Sometimes the entry does not align with the budget and creates an error. So for the right financial track, compare your actual expense to the amount you budgeted. This way, you can find a miscalculation and can work further.
These are some of the simple ways to prevent data entry errors. There are some errors which you can fix by just changing some of them, while there are others which will make you work from the start. It will consume a lot more time and effort so you will never get to submit your paper before duedate. That is why it is better to start your work in time and find the errors as fast as possible.
However, if you can not do this and your balance sheet is not balancing, you can take help from subject experts. You can ask your professor or can search for accounting assignment help online. They have online experts who will do these works for you so you will live stress-free. But if you want to do it yourself, then start early and keep practising. Always take some time off your daily routine and learn about different ways for data entry. This way, you will submit an excellent paper and secure good marks.