Accounting errors are the difference between what’s reported in the financial statements and what is actually the case. In other words, accounting errors occur when a bookkeeper or accountant makes a mistake in recording a transaction. These errors can be due to incorrect entries, an omission of transactions, or a combination of both. They can also be caused by making mistakes in calculations or using wrong principles or methods for recognizing or measuring transactions. Accounting errors can have serious consequences if left undetected; they can lead to underpayment or overpayment of taxes, as well as inaccurate reconciliations and financial statements. It’s therefore essential that organizations take measures to prevent, identify, report, and correct these errors in order to ensure accurate data and financial reporting.