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Tips On Spotting Errors In Your Internal Financial Statements 

August 2023 | admin

Having worked closely with hundreds of veterinarian clients and business owners here at Granite Peak Associates, we make a point to provide high quality tailored services to allow you to focus more on the animals, and less on the accounting. With this mission in mind, it is important to highlight weekly business transaction review, along with monthly financial statement review. Through periodic reviews and reconciliation, practice owners can assure there are no mistakes present on their internal financial statements, instilling confidence in making business decisions. Here are some tips we give our clients to ensure they are spotting errors and inconsistencies in their internal financial statements. 

 Firstly, we recommend all clients conduct weekly transaction reconciliations to ensure all transactions are posted correctly and are up to date. By reviewing both bank and credit card transactions, business owners can spot and correct possible errors and inconsistencies. This step of caution and reevaluation is crucial in certifying the records are accurate and provide a clear picture of business activities. Furthermore, this weekly routine goes a long way in minimizing the amount of stress when closing out books monthly and even yearly. While we do acknowledge there may be over a hundred transactions to account for each week, setting up pre-defined rules based on vendors and reoccurring transactions will streamline the review process, and make sure a broad array of transactions are automatically directed to the proper accounts.

 Closely related to the first step, we recommend all veterinary practice owners do monthly reviews of year-to-date financial statements. While the financial statements are directly related to weekly business transactions, this second layer of review acts as a safety net to catch any missed errors or inconsistencies within the books. We encourage all practice owners to review reoccurring and expected fixed payments that are commonly recorded incorrectly, including rent, payroll, loans, leases, and other utilities. Failure to catch discrepancies often skews the outlook of the practice’s financial benchmarks and overall performance. As we have seen time and time again, successful veterinary practices are built on strong accounting habits and practices. While a practice may be booming on the surface, business management can quickly become overwhelming if the accounting falls below par. Here at Granite Peak, we set our clients up with the most beneficial methods, providing them with the highest chance of success.