There are many challenges an accountant can face when analyzing transactions. Human errors can occur when entering or calculating data, leading to inaccuracies in financial reports. Volume of transactions and their complexity also play a role. High transaction volumes leaves more room for error as it becomes increasingly more difficult to to ensure every transaction is processed correctly. Accountants also need to be up to date with regulatory changes and make adjustments in recording practices and reporting formats to be in order. To insure transactions are being recorded accurately a company can implement advanced accounting programs that aid in automating certain processes to reduce human error. Providing regular training for accountants can also help them be more informed and updated on processes, regulatory changes and finding more effective ways to analyze and run reports. An accounting error is a high liability for a company that can potentially lead to more than financial loss. Incorrect financial statements can be misleading to stakeholders and affects the credibility and seriousness of a company. Not to mention any penalties that may come with clerical errors. Incorrect recording can inflate or deflate profit margins thus affecting decisions related to pricing, budgeting, and investment