2. Error of Omission
This is simply a failure to record an item. It's not intentional; it's just overlooked. For example, an invoice is paid but you fail to note receipt. Or you purchase a tablet but don't record this in your accounting system. This can easily happen if you misplace documentation—a receipt or invoice—so that it never gets recorded.
3. Error of Commission
This is mishandling an item by putting it in the wrong place. The amount you enter is correct, and you even put it in the right general account, but you then use the incorrect subaccount. For example, you receive payment on an invoice but note the receipt against a different customer's invoice. Your total payments come out right for accounting purposes, but what's shown for a particular customer is wrong.
4. Error of Transposition
This error is recording the incorrect amount of an item by reversing numbers. This can cause overstating or understating the amount of an item, which is the result of transposing a number. For example, instead of entering an expense as $946, you erroneously enter it as $496. This produces an error of $450. An error like this can be costly if it is a deductible amount that isn't claimed because of the entry error.
To read errors 5 -8, and how can accounting errors affect your business, go here. To learn more about Paychex and Paychex Payroll solutions visit.