Question

Why is it important, for public relations and financial reasons, to be sure all entries are posted to monthly statements correctly?

Answer 1

Correct posting of entries to monthly statements is very important because it results in preparation of timely and accurate financial statements that support the necessary decision-making and monitoring process of the management. This would add value to them and help in the prevention of mistakes that could prove to be financially costly for the organisation in the future. It also helps in building the trust and confidence of the users regarding the correctness and genuineness of the entries posted due to the increased reliability and credibility of the financial information contained in such monthly statements and reasonable assurance that there are no chances of any material misstatements whether caused by any error or fraud. This enhances the goodwill and long-term standing of the organisation due to better compliance with the Generally Accepted Accounting Principles (GAAP) as far as management reporting is concerned.