Accounting

• Transaction records can be categorized according to one of two categories -- assets or liabilities, also known as credits and debits. Transactions are organized by account type, with a cash account tracking the amount of cash used, and a sales accounting for the value of any sales made. Double-entry bookkeeping requires that for every credit there must be a corresponding debit. A company that purchases $300 of supplies would have a $300 debit in their cash account and a $300 credit in accounts payable.
  
  

Errors of Principal

• Even though most companies use some form of computerized accounting software, individuals are still responsible for inputting the required information. This means that even the best accountant is likely to make some type of error on occasion. One common type of error is an error of principle. Recording a personal expense as a business expense would constitute an error of principle, since it is contrary to fundamental accounting principals. Reviewing the company cash account can help in identifying this type of error.
  
  

Record Errors

• Omitting part or all of a transaction is another common error. This may occur when an asset is not correctly depreciated in between accounting periods. One of the easiest mistakes to identify and correct are transposition errors. If a transaction is entered for the amount of $72 and posted to the correct account, but should actually be $27, a transposition error has occurred. Transposition errors are always divisible by the number 9 -- scanning for such values can save you time.
  
  

General Ledger

• An accountant should always check the company bank statements, check register, payroll reports, sales and cash journals and any relevant notes regarding transactions to make sure they are complete. Doing so can help you find the error more quickly and systematically. When bank reconciliation records do not match with the cash account balance, you may need to pull the general ledger report. This powerful tool shows you every credit and debit made for each account type, which when compared with the bank reconciliation, reveals any errors made.
  
  

Balancing

• Accountants are the primary persons responsible for ensuring that the financial accounting records of the company are in order. Likewise, as companies are held liable for making sure their records are accurate, whatever error preventing the books from balancing must be found -- there is no scenario when the books cannot be balanced. Failure to accomplish this task could result in a loss of employment for the accountant, and potential legal problems for the company if records are found to have been falsified in order to balance the books.