Question

As you know, it is important to record your transactions timely so when it comes to the end of a quarter, you can properly close out your books. Identify and discuss the factors that lend to users not recording transactions timely in accounting systems like QuickBooks.

Answer 1

Following are the possible factors that leads to non-recording of transactions timely in Accounting systems:

1. Not tracking the invoices : It is important to keep track of all the invoices received and sent so that they are recorded & settled on timely basis.

2. Not remembering the dates : Forgetting the dates leads to book keeping probems. All the important dates like tax return date, payment dates etc. should be remembered and taken care of.

3. Unintentional failure to record : Sometimes, employees may forget to record the transaction or it may get misplaced before recording.

4. Employee turnover : Sometimes, when employees leave the organisation, they inadvertently or intentionally, take accounting records with them. This cause non-recording of the transaction or recording the transactin without substantial evidence.

5. Manipulation : Sometimes accountings records will not be recorded due to intentional manipulation. Employees may not record certain transacton to cover up their fraud.