How to Correct and Avoid Transposition Errors
It’s called a ‘transposition’ error because it involves the ‘transposition’ or ‘swapping’ of two numbers. For example, if ’34’ was mistakenly written as ’43’ , this would be a transposition error. It is important to ensure that all balances are correctly copied, and you may need to check the ledger back to the general. If you have information coming in that’s off, being miscategorized, or just all-around wonky, there’s a good chance there’s been a misuse of accounting software. There are a number of tax forms where you could make transposition mistakes, including your small business tax returns and payroll tax forms. Let’s say you reverse the numbers of an employee’s hourly rate while entering information into your payroll software. Entry reversal has the potential to turn your checks and…