In this mixed economic climate we are more than aware that some small businesses out there are struggling with cash flow and making ends meet.
A thing to do during these times is carefully review your current business performance and analyse whether any costs might be reduced through implementing certain strategies.
Accounting and bookkeeping fees are often identified as a key cost that small business owners wish to minimise.
The following are suggested strategies you could implement to minimise any accounting and business services fees. It will also put you in a great position for efficient and effective business systems.
- Don’t collect boxes full of receipts that you then pass over to your accountant. A box full of receipts represents potentially hours spent by an Accountant or bookkeeper sorting, collating, scanning and entering the raw data. Arrive at an office with them already on an electronic system such as the ATO app, an excel spreadsheet or Xero
Accountant’s are professionally trained to guide you through the pitfalls and potential traps of tax law. Therefore it’s not a cost effective idea to have them also spend hours fishing through your receipts one by one to summarise them on a spreadsheet or figure out what receipt is to do with what income stream.
- Don’t send information in dribs and drabs. Remember that time is money, your money! The more time spent on a job picking it up and putting it down because of incomplete information, potentially the more it will cost you. If you receive something it’s best to set up a folder or in-tray of documents which you’ll add to until you have everything before sending onto your tax professional. This will ensure we can start and finish the job efficiently.
- When you receive any queries from your accountant, answer them immediately and every query in full. Taking considerable to answer these queries and also sending separate answers via multiple emails will add to our time and your cost to finalise your work.
- Having a good bookkeeper who is ensuring account reports are always accurate and up to date. Not having up-to-date, inaccurate records means more time is needed by an accountant to rectify
Using an accounting system like Xero.
- Using Xero or a similar accounting program that can also become your file management system through savings digital copies of paperwork and receipts.
- Invest your time to understand: knowledge = power
- In this digital area, it isn’t always necessary to meet your Accountant especially if everything can be explained in an email with the correct information attached or supplied via the cloud. Meetings are nice but in difficult economic times they might unnecessarily and end up costing you more.
Otherwise reach out to an EASE team member for tailored guidance for your situation.