Implicit Errors in Your Books: A Guide for Small Business Leaders
In the realm of software development, an implicit error is an error that is occurring, but you don’t know it. You think everything is fine and make decisions based on the reports, but they are not telling the real story.?
This issue can be catastrophic when applied to the financial statements of a small business. Implicit errors in your books can cause you to make decisions based on inaccurate information.
What Is an Implicit Error?
As a small business owner, you make any number of important decisions daily, and most of them are at least partially dependent on your business’s current financial standing.
Your financial statements must be as accurate as possible, and you should audit your books regularly for implicit errors.?
There are two types of implicit errors: logical and semantic.