Question

• It is important to record accounting transactions in a timely manner so that you can close out your books properly at the end of a quarter. Identify and discuss the factors that lead to a user failing to record transactions in a timely manner in accounting systems like QuickBooks. Justify your response.

Answer 1

Timely recording of transactions results in proper planning of future revenue targets, marketing strategies, widening a cutomer base etc.

However following factors affect timely recording of transactions:

• Lesser number of accountants in an entity which overburdens the individual staff.
• Delay in receiving invoices from vendors.
• A careless accounting staff.
• Complex management policies regarding accounting.
• Technical glitches like server breakdown, accounting software crashed.
• Increased absenteeism of the accounting staff.
• Lack of skilled accounting professional in the entity.
• No authority to monitor accounting functions.